Write TRUE or FALSE after each of the following statements: 1. Indemnity states that you must gain from the item’s existence and suffer financially from its loss. 2. Loading is an extra charge on the basic premium due to increased risk. 3. An insurance policy is a contract. 4. Utmost Good Faith states that the insured must be truthful about all material facts when applying for insurance. 5. An Assessor calculates the premium the insured must pay.

Leaving Cert Business Insurance: Write TRUE or FALSE after each o

Write TRUE or FALSE after each of the following statements: 1 - Leaving Cert Business - Question 8 - 2014

Question 8

Write TRUE or FALSE after each of the following statements: 1. Indemnity states that you must gain from the item’s existence and suffer financially from its loss. ... show full transcript

Worked Solution & Example Answer:Write TRUE or FALSE after each of the following statements: 1 - Leaving Cert Business - Question 8 - 2014

Step 1

1. Indemnity states that you must gain from the item’s existence and suffer financially from its loss.

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Answer

FALSE. Indemnity actually means that you should be restored to the financial position you were in before the loss, rather than gaining from it.

Step 2

2. Loading is an extra charge on the basic premium due to increased risk.

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Answer

TRUE. Loading is indeed an additional charge added to the basic premium to account for higher risk.

Step 3

3. An insurance policy is a contract.

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Answer

TRUE. An insurance policy is considered a legal contract between the insurer and the insured.

Step 4

4. Utmost Good Faith states that the insured must be truthful about all material facts when applying for insurance.

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Answer

TRUE. The principle of Utmost Good Faith requires that both parties to an insurance contract act honestly and disclose all relevant information.

Step 5

5. An Assessor calculates the premium the insured must pay.

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Answer

FALSE. An Assessor typically evaluates claims and damages, while the premium is calculated based on various risk factors.

Write TRUE or FALSE after each of the following statements: 1 - Leaving Cert Business - Question 8 - 2014

Worked Solution & Example Answer:Write TRUE or FALSE after each of the following statements: 1 - Leaving Cert Business - Question 8 - 2014

1. Indemnity states that you must gain from the item’s existence and suffer financially from its loss.

2. Loading is an extra charge on the basic premium due to increased risk.

3. An insurance policy is a contract.

4. Utmost Good Faith states that the insured must be truthful about all material facts when applying for insurance.

5. An Assessor calculates the premium the insured must pay.

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