TMA3/ENT121

My TMA Home TMA Results My Pending TMA Quick Help My TMATMA InstructionCourse DetailTMA CalendarGrading Message BoardQuick InfoInstructor Message Quiz NoteQuiz Tip - 1Quix Tip - 2 TMA Quiz Questions   TMA: TMA3/ENT121 Matric Number:  score=9.50 ENT121 - Principles & Practice of Insurance Ms Ume Eucharia (euume@noun.edu.ng )   1 This fact need not be disclosed Losses under previous insurance contracts Knowledge of the law A refusal of cover by another insurer Full facts of subject matter of insurance 2 Good faith must be observed by the Proposal and insurer Agencies and brokers Insurance companies Properties to be insured 3 In insurance contract, the perils against which cover is granted Satisfies disclosure requirement Clearly stated Assumed known Left for the future 4 The principle to ensure that persons who insure against specific risks are compensated is called Insurable interests Train of events Proximate cause Caveat emptor 5 The efficient cause of a loss is approximately determined by Initial event Last event Initial and last event Proximate event 6 A petrol tanker skids off a highway, spills its content, with a spark at the point of impact. A fire was started that guts the vendors shanties at the bus station, which eventually engulfed the neighbouring buildings. The proximate cause of the damage is Petrol tanker Shanties at bus station and fire Spilled petrol and spark at point of impact Vendors shanties and neighbouring buildings 7 Perils not mentioned at all in a policy are Excepted or excluded perils Assured perils Other perils Exclusion perils 8 Principle of indemnity means that insured cannot recover any sum Less than insurable interests Same as insurable interests Exceeding insurable interests That is not disclosed 9 Indemnity returns the insured after loss to a financial position that is Better Equivalent Same Proximate 10 If an insurer bought a machine for ₦1m five years ago but knows that it would cost ₦1.5m to replace today. How much should he receive if there is a valid claim under the insurance policy? ₦0.5m ₦1.0m ₦1.5m ₦2.5m 11 Principle of indemnity relies heavily on Insurable interests Value of property Financial evaluation of insurance Personal accident policies 12 Policies that are not contract of indemnity include Fire Life and personal accident Motor vehicle Oil and gas 13 The calculation of indemnity of total destruction of property is based on the following, EXCEPT Estimated repair or replacement Deductions for wear and tesr Current market value Cost of betterment 14 In a situation of partial losses, indemnity is Value of asset Cost of repair Difference between purchase price and second hand value Second hand value 15 An insured can be paid an equivalent to value of a damaged building if he/she has Intention of effecting repairs Intention of effecting repairs Wanted to live in building Emotionally attached 16 The principle of indemnity is to Enable insured recover sustantial part of asset Allow insured to be compensated adequately Provide basis for redemption of pledge Equitable recovery of premium 17 Subrogation on property means Adopting group insurance interests Passing over interest to the insurers Indemnifiable interests Surrogate contract 18 Subrogation allows Insured to indemnify loss Recoup profit insured might make from an insured event Ascertain insured indebtedness Prospecting 19 Subrogation does not apply to Oil and gas Engineering Life and personal accident Fire 20 In excercising their subrogation rights, an insurer does not make Profit Losses Promises come true A statement