Q: The amount of
premium is affected by which factors?
A:
Q: Which kinds
of risks are not included in most of property insurance?
A:
-
War
-
Nuclear & Radiation
-
Sound Wave
Q: What is the
maximum ceiling of the insurers' liability?
A:
The total sum insured is the maximum level of insurer’s
liability under the policy during any period of insurance if the policy
contains two or more items, the liability of insurer under each item does
not exceed the sum insured by such item.
Q: What does proximate cause mean?
A:
Every event is the effect of some cause:
-
The relation of cause and effect must be established.
-
It must be shown that the event is reasonable, probable consequence of the
cause in the ordinary course of things.
-
If the event is connected with the cause by a chain of circumstances
leading naturally from the one to the other, then the cause is proximate
however long the chain may be.
-
If several causes are in operation at the same time and the event is due to
their cooperation, each is as much the proximate cause of the event as the
other.
-
If the chain is broken by a fresh cause which is only the accidental
consequence of the first cause, then the first cause is not proximate but
remote.
Q: What is the term for an arrangement in which your health plan
pays a certain percentage of covered medical services and you pay the
remaining portion?
A:
"Coinsurance" is a fixed percentage of charges that you pay
for a specific service covered by your health plan.
Q: The cost of issuing a
life insurance policy is a variable factor depending on various elements,
what are they?
A:
The number of years your income would be needed by your
dependents, the standard of living you would like your dependents to have,
and the amount of outstanding debt you would need to pay off are all
factors to consider when assessing your life insurance needs. Other factors
to consider include other sources of income that would be available to your
dependents, and what your dependents' future educational needs will be.
Q: Name two distinguished features of insurance convention?
A:
-
Insurance convention should be written.
-
There should be an insurable interest.
Q:
What is a cover note?
A:
This is a document which is issued to afford immediate
insurance protection, pending the issue of the policy. It is only a
temporary document, but is nevertheless subject to the conditions of the
policy and warranties normally applicable to the risk under consideration.
Q:
What is the formula for evaluation of settlement
value for property which are subject to average?
A:
Property policy
subject to average:
Settlement Value = Sum Insured * Loss / Full Value
Q: What is the formula for evaluation
of settlement value for property when not subjected to average?
A: Liability
of Particular Insurer =
Sum
Insured by Particular Insurer * Loss / Total of Sum Insured by All
Insurer
Q: What formula is used for
evaluating independent liability?
A:
Sum Insured * Loss / Value at Risk
Q:
How indemnity is provided?
A:
By receiving a
valid claim increases normally refer to 4 ways in providing indemnity as
in form of:
- Cash
- Replacement
- Reinstatement
- Repair
Q:
Under which conditions,
contribution is applicable?
A:
- Two or more policies of
indemnity exists.
- The policies cover a
common interest.
- The policies cover a
common perils which gave rise to the loss.
- The policies cover a
common subject matter.
- Each policy must be
liable for the loss.
Q:
Subrogation rights arise
in four ways, name them?
A:
-
Rights arising out of torts
-
Rights arising out of statute
-
Rights arising out of subject matter
-
Rights arising of contract
