|
(c) |
State whether the following insurance contracts are legally enforceable :
(i) | John Prabhakar took a life insurance policy on his life. Five months later, he expired. The death certificate named the deceased as John Prabu. |
(ii) | An insurer receives an application for an insurance policy containing incomplete information. The insurer does not contact the applicant for additional information and the policy is issued. Later, the insurer denies payment of claim on the basis of incomplete application. |
(iii) | A life insurance agent knows that an applicant for life insurance is addicted to alcohol. The agent deliberately omits this information from the application to the insurer. The policy is issued. Later, the insurer denies claim on the basis of concealment of facts. |
|
(3 marks each) |
|
(d) |
State with brief reasons whether the following statements are true or false :
(i) | Credit insurance replaces normal credit management process. |
(ii) | Before getting a licence to act as a surveyor, the applicant has to undergo practical training compulsorily. |
(iii) | Banks are getting into insurance business inIndia. |
(iv) | Self-insurance is a form of insurance. |
(v) | Subrogation applies to life insurance. |
(vi) | In life insurance, insurable interest must be |
|
(1 mark each) |
6. |
(a) |
What are the perils covered under the ‘standard fire and special perils policy’ ? On what factors does the premium under this policy depend upon ? |
(8 marks) |
|
(b) |
“Agents play a key role in the development of insurance business.” Do you subscribe to this view ? State the rights and duties of an agent. |
(7 marks) |
7. |
Attempt any three of the following :
(i) | Distinguish between ‘actual total loss’ and ‘constructive total loss’ in marine claims. |
|
(5 marks each) |
|
(ii) | Explain the prescribed procedure for lodging claim under the ‘public liability insurance’. |
|
(5 marks each) |
|
(iii) | State the basic functions of a ‘risk manager’. |
|
(5 marks each) |
|
(iv) | State the type of marine policy in the following cases :
(a) | Policy which covers voyage from one place to another. |
(b) | Value of loss is fixed and remains constant. |
(c) | Value of policy is left to be valued when the loss takes place. |
(d) | Policy that covers losses within the particular time and place. |
(e) | Policy issued in foreign currency. |
|
|
(1 mark each) |
8. |
Write short notes on any five of the following :
(i) | Puffery |
(ii) | Deposit insurance |
(iii) | Credit derivatives |
(iv) | Foreign equity in insurance sector |
(v) | Warehouse to warehouse clause |
(vi) | Professional liability cover. |
|
(3 marks each) |