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Fundamentals Of Insurance: Chapter 2 - Insurance Contracts Questions and
Answers with Solutions UPDATED!!!
(i) Identify the five elements required to be present in all
contracts. - ANSWER 1. Agreement.
2. Consideration.
3. Legality of Object.
4. Legal Capacity of the Parties To Contract.
5. Genuine Intention.
(i) What does it mean for brokers to "bind" an insurer on a risk?
- ANSWER It means that the broker has committed the insurer
to provide a contract of insurance on the subject matter under
discussion.
(ii) Identify the three additional elements which are unique to
insurance contracts. - ANSWER 1. Insurable Interest - So ppl
can't benefit from a loss which they have no financial stake.
2. Utmost Good Faith - honesty between the insured and the
insurer.
3. Indemnity - Ensures ppl receive the actual amount of their
loss.
Fundamentals Of Insurance: Chapter 2 - Insurance Contracts Questions and
Answers with Solutions UPDATED!!!
(i) Identify the five elements required to be present in all
contracts. - ANSWER 1. Agreement.
2. Consideration.
3. Legality of Object.
4. Legal Capacity of the Parties To Contract.
5. Genuine Intention.
(i) What does it mean for brokers to "bind" an insurer on a risk?
- ANSWER It means that the broker has committed the insurer
to provide a contract of insurance on the subject matter under
discussion.
(ii) Identify the three additional elements which are unique to
insurance contracts. - ANSWER 1. Insurable Interest - So ppl
can't benefit from a loss which they have no financial stake.
2. Utmost Good Faith - honesty between the insured and the
insurer.
3. Indemnity - Ensures ppl receive the actual amount of their
loss.
