ECONOMICS
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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“I think I need a personal property floater.”
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“I think I should get speculative risk insurance.”
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“I will deduct the cost of the jewelry from my premium.”
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“I realize that if this jewelry is stolen it will be considered vicarious liability.”
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Detailed explanation-1: -Term Insurance Plans Term insurance is a pure protection plan and is not market-linked. Moreover, the premiums for term insurance are lower as compared to any other life insurance product. The premiums are also more affordable if you buy them early in life.
Detailed explanation-2: -The consideration clause spells out exactly how much premium payments are and when they are due. The legal consideration for a life policy consists of the application and payment of the initial premium. It may also list the effective date.
Detailed explanation-3: -Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of insurance company? An insurance contract is an aleatory contract in that it requires a relatively small amount of premium for a large risk.
Detailed explanation-4: -This is a summary of the major promises of the insurance company and states what is covered. In the Insuring Agreement, the insurer agrees to do certain things such as paying losses for covered perils, providing certain services, or agreeing to defend the insured in a liability lawsuit.