When you want to ensure something against a risk, some insurance companies may not want to cover it rendering insurable, and risk is therefore insurable if it is immeasurable, not definable or certain. Take up the quiz below and get to test out your knowledge on insurable risk management by taking up this quiz. Be sure to share your score!
$80,000
$120,000
$30,000
$100,000
An employer effects a public liability policy to cover the negligent acts of his employee
A bowling club effecting an all risk policy on bowling balls belonging to its members
An employer effecting a group personal accident policy on all employees who are already entitled to workmen compensation benefits
A finance company effecting a comprehensive motor policy on a car because the hirer under a hire purchase agreement has failed to effect the policy
Are prepared and issued by insurance intermediaries
Contain information used to make underwriting decisions
Are exactly the same with all classes of business
Provide information that the insurers will need to process a claim
Assignment
Indemnity
Subrogation
Contribution
Loss must be definite in terms of time and amount
There must be a large number of people with similar potential for loss available for insurance
Risk must be pure risk
Loss must be catastrophic
Fidelity guarantee insurance
Uberrima fiedes insurance
Consequential loss insurance
Hold harmless insurance
Utmost good faith
Charge of occupation
Inform insurer within a time frame when loss occur
Ensure burglary alarm is in good order
Is the written evidence of the contract
Is the basis of a contract
Is like a cover note that have the same legal status of a actual insurance policy
Forms the basis o a contract
Insurance agents
Lloyds intermediaries
Reinsurers ceding retrocession contracts
Insurance brokers
At loss
At best no gain situation
Either a profit or loss
Neither a profit or loss
Laziness or ignorance
Insurance policy with a deductible
No smoking rule in area which flammable materials are stored
Install fire sprinkler system
A method to transfer risk
A method to prevent or reduce loss if they occur
A non insurance method of retaining a risk
A particular risk that affects a limited group of people
At lloyds of london, underwriting members are not grouped into syndicates
An insurance principle is bound by acts within the actual authority of the agent and not by any authority which the agent ostensibly possess
An agent has certain rights against the principle. They are remuneration, lien, indemnity
The basis if risk transfer is that the losses of a few are met by the contribution of many
Arbitration proceedings are conducted in private
Proceedings are informal and may be less expensive than litigation
The credibility of arbitration may be undermined if proceedings are conducted in a unbiased manner
Verdict is final unless a point of view is raised
Mean exactly the same thing but expressed in a diff manner
Are concepts that are not connected to indemnity in any way
May be considered sub principles and corollaries to principle of indemnity
Will apply in every class of insurance including Life and PA insurance
Not subjected to time limits
The insured's responsibility
Insurer's responsibility
Required to enable loss management measurements
The insurer or agent has a duty to provide proper advice on the subject matter of insurance
The proposer/insured has a duty to state perils to be insured
The proposer/insured is to disclose in the proposal form fully and faithfully all the facts which he/she knows or ought to know
The insurer or agent is entitted to reject the proposal if he finds that the information provided is inadequate
Endorse the payment of premium
Describes and states the ground rules for the policy
States the parties to the contract
Record any changes made to existing policy
Facultative excess of loss
Quota share
Excess of loss
Catastrophe excess of loss
Express authority
Waiver of authority
Usual or customary authority
Implied authority
To eliminate uncertainty of losses and provide peace of mind to the direct insurer
To help stabilize the direct insurer's losses by smoothing the fluctuations from year to year
To help increase the direct insurer's capacity so that he can cover more catastrophe risks
By way of reinsurance the effects of catastrophes can be cushioned
Policy number
Correction of error in description
Period of insurance and renewal date
Signatures of authorized signatories
Providing more service than what is required
Cheating and a criminal offence
Grounds for suspecting or cancelling an agent's registration
When an agent quote a premium rate set by the insurer and keeps the difference
Only important with life and property insurance
Is not always necessary with every kind of insurance
Is required to be present at one time or another with all insurances
Is only applicable if the financial loss can be measured with exact precision
I, II, III
II & III
II, III, IV
All
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