Session 3 Practice Exam - Part 1

Create an educational and engaging illustration representing various aspects of insurance law, featuring elements like contracts, insurance policies, and symbols of legal principles, with a professional and academic tone.

Insurance Law Mastery Quiz

Test your knowledge of insurance law and contract principles with this comprehensive quiz! Designed for students, professionals, and enthusiasts alike, this quiz covers key concepts and principles essential for understanding the intricate world of insurance and contracts.

Whether you're preparing for exams or just want to challenge yourself, this quiz offers valuable insights into:

Key insurance principles
Contract law fundamentals
Insurance policies and their applications
Essential terminology and definitions

31 Questions8 MinutesCreated by LearningLaw101

This law provides the very basis of formal co-operation in the society, without it the very fabric of society will become weak.

Contract Law

Insurance Law

Basic Law

Obligatory Law

This law has widest application (no other law can boast of such a wide applicability)

Insurance Law

Contract Law

Obligatory Law

Basic Law

It is a means of ‘social solidarity’ – as a tool of cooperation, this law helps a lot in rendering society more happy.

Basic Law

Obligatory Law

Contract Law

Insurance Law

What is/are the truth(s) about the basics of contract law?

Written or verbal except when required by law

Enforceability in a court of law

Intention to create a legal relationship

Purpose must be unlawful

Form must be illegal

In this insurance principle, insured knows more about the insured interest than the insurer and the insurer knows more about the Insurance policy than the insured.

Principle of Utmost Good Faith

Principle of Proximate Cause

Principle of Indemnity

Principle of Contribution

In this insurance principle, false information or non-disclosure of any important fact makes the contract voidable.

Principle of Contribution

Principle of Utmost Good Faith

Principle of Proximate Cause

Principle of Indemnity

Many of these are responses to questions to determine whether the applicant is insurable and how much should be charged.

Mutuals

Representations

Confirmations

Contributions

This one was relied upon by the insurer in issuing the policy in which if the truth were known, the insurer either would not have issued the policy, or would have issued it with different terms, and probably would have charged higher premiums.

Signature

Material representation

Insurance contract

Electronic stamp

The insurance company cannot deny a claim for a false representation unless it can prove that the applicant lied and intended to deceive the company—not because the applicant merely expressed an opinion that later turned out to be false.

True

False

Any misrepresentations after a loss can also void this type of contract (a common example of this type of misrepresentation is when the insured suffers the loss of property, but files a claim for much more than the property was actually worth).

Period contract

Insurance contract

Finance contract

Cost-reimbursement contract

It is a promise by the insurance applicant to do certain things or to satisfy certain requirements.

Misrepresentation

Concealment

Contract void

Warranty

It becomes part of the insurance contract and if the insured breaches this, the insurer can void the contract and deny payment of a claim.

Misrepresentation

Datum

Warranty

Certitude

It is a statement of fact, which is basically the same as a representation.

Affirmative warranty

Promissory warranty

Express warranty

Implied warranty

It is a promise to do something or that something will be done in a specific way.

Affirmative warranty

Promissory warranty

Express warranty

Implied warranty

The principle states that to find out whether the insurer is liable for the loss or not, the proximate (closest) and not the remote (farthest) must be looked into.

Principle of Utmost Good Faith

Principle of Proximate Cause

Principle of Contribution

Principle of Indemnity

In order to determine whether a loss resulted from a cause covered under an insurance policy, a court looks for the predominant cause which sets into motion the chain of events producing the loss, which may not necessarily be the last event that immediately preceded the loss. This is under the principle of?

Principle of Utmost Good Faith

Principle of Indemnity

Principle of Contribution

Principle of Proximate Cause

In this principle of insurance, the person who suffers a financial loss is placed in the same financial position after the loss as before the loss occurred.

Principle of Utmost Good Faith

Principle of Indemnity

Principle of Proximate Cause

Principle of Contribution

The person who suffered neither profits nor is disadvantaged by the loss in this principle.

Principle of Proximate Cause

Principle of Contribution

Principle of Subrogation

Principle of Indemnity

The insurer promise to help the insured in restoring the financial position before loss has occurred.

Principle of Subrogation

Principle of Indemnity

Principle of Contribution

Principle of Proximate Cause

This insurance principle happens when the asset is insured for a value lower than the actual value.

Principle of Subrogation

Principle of Indemnity

Principle of Contribution

Insurable Interest

It is a corollary of the principle of indemnity.

Insurable Interest

Principle of Sudrogation

Principle of Contribution

Principle of Indemnity

It is about the financial relationship of a person to the subject matter of the insurance, that is the property or liability referred to in the contract.

Insurable Interest

Principle of Subrogation

Principle of Indemnity

Principle of Contribution

It can arise in a variety of ways but it is always related to the financial relationships involved.

Principle of Indemnity

Insurable Interest

Principle of Contribution

Principle of Subrogation

According to this principle, when the insured is compensated for the losses due to damage to his insured property, then the ownership right of such property shifts to the insurer.

Insurable Interest

Principle of Indemnity

Principle of Subrogation

Principle of Contribution

In this principle, the insurer has paid for the loss for which he is liable under the policy.

Insurable Interest

Principle of Contribution

Principle of Indemnity

Principle of Subrogation

According to this principle, if the insured party gets a compensation for the loss suffered by him, he cannot claim the same amount of loss from any other party.

Principle of Indemnity

Principle of Subrogation

Principle of Contribution

Principle of Utmost Good Faith

Session 3 Practice Exam - Part 1

Insurance Law Mastery Quiz

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