Insurance Principles and Contract Law Quiz Test your knowledge of insurance fundamentals, contract law, and key principles with these 13 quiz questions. Explore insurable interest, proximate cause, deductibles, and more.
#1
Principle of utmost good faith
Principle of negligence
Principle of strict liability
Principle of caveat emptor
#2
Liability insurance
Comprehensive insurance
Health insurance
Life insurance
#3
To reduce the overall cost of the insurance policy
To eliminate coverage for certain types of losses
To share the risk between the insured and the insurer
To increase the profit margin for the insurer
#4
A type of insurance for reins
Insurance for large corporations
Insurance for multiple people
Insurance purchased by insurance companies to protect themselves against large losses
#5
To limit the number of claims an insured can make
To provide additional coverage to the insured
To define situations or risks that the policy will not cover
To make the policy language more complex
#6
To set the maximum number of policies an individual can have
To limit the amount an insurer will pay out for covered losses
To limit the coverage area of an insurance policy
To increase the premiums for high-risk policyholders
#7
The insured must have a financial stake in the insured item
The insured must be famous
The insured must live in a specific location
The insured must have a good credit score
#8
It determines who is responsible for causing an accident
It identifies the primary cause of a loss, determining whether it's covered by insurance
It's a legal doctrine unrelated to insurance
It defines the geographic proximity required for an insurance policy to be valid
#9
Insurers must compensate the insured for the exact amount of their loss
Insurers can compensate the insured for any amount they deem appropriate
Insurers are not obligated to compensate the insured
Insurers can refuse compensation at their discretion
#10
The insurer must disclose all relevant information honestly and accurately
The insurer must hide information from the insured
The insured must keep information from the insurer
Both parties must deceive each other
#11
The amount the insured pays to the insurer for coverage
The amount the insurer pays to the insured after a claim
The amount the insurer pays to a third party for damages
The cost of insurance fraud investigation
#12
The risk of physical harm to the insured
The risk of fraudulent claims by the insured
The risk of accidents caused by natural disasters
The risk of financial loss due to economic downturns
#13
The process of an insurer assuming the legal rights of the insured after paying a claim
A type of insurance fraud
The act of insuring something again with a different insurer
The process of determining the value of insured property
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