Procedures for insurance contract - SS2 Commerce Past Questions and Answers - page 1
What is the purpose of a proposal form in an insurance contract?
To assess the risk involved
To issue the insurance policy
To collect the premium
What is the premium in an insurance contract?
The amount paid to the insured person
The amount paid to the insurance company for coverage
The temporary document that provides immediate coverage
What does a cover note serve as in an insurance contract?
Immediate coverage until the policy is issued
Proof of payment for the premium
Legal contract between the insured and the insurer
When does the insurance company issue the insurance policy in an insurance contract?
After the inquiry is made
After the premium is paid
After the cover note is issued
What are the terms and conditions of coverage outlined in an insurance contract?
Proposal form
Premium
Insurance policy
What is the purpose of a cover note in an insurance contract?
A cover note provides immediate coverage until the actual insurance policy is issued.
When is the premium paid in an insurance contract?
The premium is paid after the proposal form is submitted and assessed by the insurance company.