#1
Which of the following is a fundamental principle of insurance law?
Utmost good faith
ExplanationRequires both parties to act honestly and fairly in their dealings
#2
Which of the following best defines 'insurable interest' in insurance law?
Any interest in property or life that would be affected by the loss of the insured property or the death of the insured person
ExplanationInterest in property or life impacted by insured loss or death
#3
What is the 'principle of indemnity' in insurance law?
Insured parties must receive compensation that places them in the same financial position as before the loss
ExplanationCompensation should restore insured to the pre-loss financial position
#4
What does 'utmost good faith' imply in insurance law?
Insured parties must disclose all material facts to the insurer
ExplanationRequirement for insured to disclose all material facts to the insurer
#5
What is the main purpose of 'marine insurance'?
To cover losses or damages related to marine risks
ExplanationInsurance specifically designed for losses related to marine risks
#6
In the case of *Horsley v MacLaren*, what was the issue regarding insurance?
Duty of disclosure
ExplanationLegal obligation to disclose all relevant information in insurance contracts
#7
Which legal doctrine is often invoked when an insurer waives its right to assert a defense?
Doctrine of waiver
ExplanationVoluntary relinquishment of a known right or conduct that implies the relinquishment of a right
#8
What does the 'doctrine of subrogation' entail in insurance law?
Insurers have the right to step into the shoes of the insured and recover from third parties who are legally responsible for the loss
ExplanationInsurers can recover from third parties responsible for the loss
#9
Which of the following is an example of 'concealment' in insurance law?
Intentionally failing to disclose relevant information on an insurance application
ExplanationIntentional failure to disclose crucial information on an insurance application
#10
Which of the following statements best describes 'waiver' in insurance law?
Voluntary relinquishment of a known right or conduct that implies the relinquishment of a right
ExplanationVoluntary giving up of a known right or conduct implying relinquishment
#11
In the case of *Dalby v India and London Life Assurance Co.*, what issue was addressed regarding insurance policies?
The interpretation of ambiguous policy terms
ExplanationFocused on interpreting ambiguous terms in insurance policies
#12
What is the 'parol evidence rule' in the context of insurance contracts?
Rule that bars the introduction of extrinsic evidence to vary the terms of a written contract
ExplanationProhibits the use of outside evidence to alter the terms of a written contract
#13
In the case of *Pan Atlantic Insurance Co. v. Pine Belt Cadillac, Inc.*, what legal principle was established?
Doctrine of contra proferentem
ExplanationAmbiguous terms in insurance policies are construed against the insurer
#14
What is the significance of the 'doctrine of utmost good faith' in insurance contracts?
Requires both parties to act honestly and fairly in their dealings
ExplanationMandates honesty and fairness in insurance dealings
#15
In the case of *Lucena v Craufurd*, what principle was established regarding marine insurance?
Principle of insurable interest
ExplanationEstablished the importance of insurable interest in marine insurance
#16
What does 'uberrimae fidei' mean in insurance law?
Utmost good faith
ExplanationLatin term for 'utmost good faith'
#17
Which of the following is a key element of 'proximate cause' in insurance law?
The ultimate cause of the loss
ExplanationPrimary cause leading to the loss