Exam (elaborations)
LML4805 Exam pack 2024(Questions and answers)
- Course
- Institution
LML4805 Exam pack 2024(Questions and answers) With accurate answers and 100% assurance that they are in the exam.
[Show more]
Seller
Follow
gabrielmusyoka940
Reviews received
Content preview
LML4805 EXAM PACK2024
QUESTIONS AND
ANSWERS
FOR ASSISTANCE CONTACT
EMAIL:gabrielmusyoka940@gmail.com
, Stuvia.com - The study-notes marketplace
EXAM PACK
DEFINITIONS
Distinguish (in a single sentence, where possible, and with the aid of
examples, where necessary) between:
QUESTION 1:
The insured and the person concluding the insurance contract with
the insurer
the person taking out the insurance (ie, the person
concluding the contract with the insurer) A may insure his
or her own interest in his or her own house. A may insure
his or her own interest in B’s house. A may insure B’s
interest in his or her own (A’s) house, or in B’s house, or in
C’s house.
the insured is the person who enjoys protection in terms of
the policy and he is the 1 st holder of the policy.
QUESTION 2:
The insured, the life insured and the beneficiary in terms of a life
insurance contract;
the insured is the person who enjoys protection in terms of
the policy and he is the 1 st holder of the policy.
The life insured is the person whose life is insured
The beneficiary is the person who will benefit from the
policy
John insures his wife Mary’s life and names his daughter Grace as
beneficiary
QUESTION 3:
A void and a voidable insurance contract
void: no contract comes into existance because it excludes
one of the basic requirements
voidable: a valid contract comes into exitsnance but may be
terminated or enforced at the will of the innocent party
QUESTION 4:
Fire insurance and marine insurance;
Marine insurance; is a contract of indemnity and is aimed at
providing the insured with indemnity against his loss caused
to the owners of ships
Downloaded by: gbuthelezi1 | gbuthelezi1@gmail.com
Distribution of this document is illegal
, Stuvia.com - The study-notes marketplace
Fire insurance: the insurer will be liability in terms of
indemnity insurance for loss caused by fire damage
Look at the nature of he event insured against
QUESTION 5:
Positive and negative misrepresentation by an insured;
Positive misrepresentation: insured makes a positive
incorrect statement about a material fact
Negative misrepresentation: insured fails to disclose a
material fact to the insurer
QUESTION 6:
A limitation on risk and an exception to risk in an insurance contract
A limitation on risk : the insured has the onus to prove the
event was caused by the event insured against and not the
excluded clause: must prove death – and exclude suicide as a
cause of death
An exception to risk in an insurance contract: insurer must
prove that the event was caused by the execption = death was
caused by suicide
QUESTION 7:
The objective and the subjective test for the materiality of facts
The IR proves that IT seee the fact as material = subjective
test
Reasonable person would consider the fact to be material =
complete OBJECTIVE TEST (Mutual and Federal Case)
QUESTION 8:
An insurance contract and an insurance policy.
An insurance contract: An insurance contract is a tangible
agreement
An insurance policy: The policy is the reduction of that
agreement into a tangible form.
QUESTION 9:
A cover note and an insurance policy;
An insurance policy: The policy is the reduction of that
agreement into a tangible form.
A cover note: document issued by the insurance company
giving temporary insurance until a formal policy is issued
Downloaded by: gbuthelezi1 | gbuthelezi1@gmail.com
Distribution of this document is illegal
, Stuvia.com - The study-notes marketplace
QUESTION 10:
Indemnity insurance and capital (non-indemnity) insurance;
Indemnity insurance: the contract between the parties –
insurer will indemnify the insured for patrimonial loss/
damages as a result of the happening of the event insured
against. Purpose of the contract: restore the insured to the
position he occupied before. The insured isn’t allowed to
make a profit out of his loss. Interests insured against are
patrimonial.
Capital insurance: insurer undertakes to pay a specified
amount to the insured on the happening of the event insured
against. The interest is non-patrimonial.
QUESTION 11:
The object of insurance and the object of the risk;
Object of insurance: The object of insurance isn’t a physical
object but an interest the insured wants to protect by the
insurance. X ownership over the boat
Object of risk: In the case of indemnity insurance, the object
of the risk is a physical/ non-human object, while in the case
of capital insurance, the object relates to a person. X’s boat
QUESTION 12:
An affirmative warranty and a promissory warranty;
Affirmative warranty; Is a warranty that particular facts are true
at the date when the warranty is given
Promissory warranty; Warranty with regard to the future: that a
particular fact or state of affairs will be true/ continue to be
true
QUESTION 13:
An insurance agent and an insurance broker;
An insurance agent: insurers aren’t natural people and are
legal entities who can only act through people representing
them: prospective insured gets a broker to negotiate the most
favorable terms
An insurance broker; the insured may employ a representative
to act on his behalf in obtaining, negotiating and maintaining
insurance cover.
Downloaded by: gbuthelezi1 | gbuthelezi1@gmail.com
Distribution of this document is illegal
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller gabrielmusyoka940. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.50. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
83662 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now