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1. In order for a contract to be legally enforceable, what further action is required after offer and acceptance?
A) Exchange of consideration between the two parties.
B) Provision of written terms and conditions.
C) Delivery of goods or services concerned.
D) Witnessing by a third party.
2. How do an insurer's subrogation rights differ, if at all, between a theft policy and a personal accident policy?
A) Subrogation rights do not apply under either policy.
B) Subrogation rights only apply under a theft policy.
C) Subrogation rights apply under both policies.
D) Subrogation rights only apply under a personal accident policy.
3. What legally recognised financial relationship must exist, between a policyholder and the items being insured, to constitute a valid household contents insurance policy?
A) Risk indemnity.
B) Insurable interest.
C) Vicarious liability.
D) Delegated authority.
4. An investor is unable to obtain insurance to protect his potential losses while trading on the stock market because the category of risk is deemed to be
A) speculative.
B) financial.
C) particular.
D) pure.
5. Sara searches on a comparison website for car insurance. She selects the cheapest quotation and pays by credit card for immediate cover. This is known as
A) unconditional acceptance.
B) an offer.
C) a Terms of Business Agreement.
D) conditional acceptance.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: B | Question # 3 Answer: B | Question # 4 Answer: A | Question # 5 Answer: A |
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