Procedures for insurance contract - SS2 Commerce Past Questions and Answers - page 1

1

What is the purpose of a proposal form in an insurance contract?

 

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A

To assess the risk involved

 

B

To issue the insurance policy

 

C

To collect the premium

 

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2

What is the premium in an insurance contract?

 

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A

The amount paid to the insured person

 

B

The amount paid to the insurance company for coverage

 

C

The temporary document that provides immediate coverage

 

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3

What does a cover note serve as in an insurance contract?

 

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A

Immediate coverage until the policy is issued

 

B

Proof of payment for the premium

 

C

Legal contract between the insured and the insurer

 

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4

When does the insurance company issue the insurance policy in an insurance contract?

 

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A

After the inquiry is made

 

B

After the premium is paid

 

C

After the cover note is issued

 

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5

What are the terms and conditions of coverage outlined in an insurance contract?

 

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A

Proposal form

 

B

Premium

C

Insurance policy

 

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6

What is the purpose of a cover note in an insurance contract?

 

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7

When is the premium paid in an insurance contract?

 

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