Insurance - Study Mode

[#546] An insurance agent represents a/an
Correct Answer

(A) Insurance company

Explanation

Solution: An insurance company is responsible for the acts of its agents and it can be assumed by an insurance applicant that any information or payment of money to the agent will be received by the insurance company.

[#547] Which of the following are not a part of insurance planning?
Correct Answer

(B) House loans

Explanation

Solution: House loans are not a part of insurance planning. It is a bank loan.

[#548] The date of issue of the FPR indicates
Correct Answer

(A) The date when the risk effectively begins

Explanation

Solution: The date of issue of the FPR indicates the date when the risk effectively begins.

[#549] Which of the following could be classified as Nondisclosure?
Correct Answer

(C) A & B are correct

Explanation

Solution: Inadvertent omission of information and Intentional suppression of information (Concealment) could be classified as Nondisclosure.

[#550] Which of the following could be termed Misrepresentation?
Correct Answer

(C) A & B are correct

Explanation

Solution: Both Innocent misrepresentation and fraudulent misrepresentation could be termed Misrepresentation. Innocent misrepresentation is a misrepresentation made by someone who had reasonable grounds for believing that his false statement was true. Fraudulent misrepresentation is a civil tort arising out of contract law. It is a false statement of fact that causes or induces someone to enter into a contract.