C03 Principles of Insurance MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on C03 Principles of Insurance, a fundamental topic in the field of IC38 Life Insurance Agent Exam. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our C03 Principles of Insurance MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of C03 Principles of Insurance mcq questions that explore various aspects of C03 Principles of Insurance problems. Each MCQ is crafted to challenge your understanding of C03 Principles of Insurance principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC38 Life Insurance Agent Exam tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our C03 Principles of Insurance MCQs are your pathway to success in mastering this essential IC38 Life Insurance Agent Exam topic.

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C03 Principles of Insurance MCQs | Page 2 of 7

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Q11.
What is a "material fact" in the context of an insurance contract?

a.

A fact that has no impact on the insurance premium.

b.

Any fact that the insurer requests.

c.

A fact that affects the judgment of the insurance underwriter.

d.

A fact that is known only to the insurer.

Discuss
Answer: (c).A fact that affects the judgment of the insurance underwriter. Explanation:A "material fact" in insurance is a fact that affects the judgment of the insurance underwriter in deciding whether to accept the risk and at what rate of premium.
Q12.
Who has the legal duty of Utmost Good Faith in insurance contracts?

a.

Only the insurer

b.

Only the insured

c.

Both the insured and the insurer

d.

Neither the insured nor the insurer

Discuss
Answer: (c).Both the insured and the insurer Explanation:Both the insured and the insurer have a legal duty of Utmost Good Faith in insurance contracts.
Q13.
Which of the following scenarios involves a material fact that should be disclosed in a life insurance proposal?

a.

The proposer's favorite hobbies

b.

The proposer's age

c.

The proposer's preferred brand of clothing

d.

The proposer's choice of food

Discuss
Answer: (b).The proposer's age Explanation:In a life insurance proposal, the proposer's age is a material fact that should be disclosed.
Q14.
In a fire insurance proposal, which of the following is considered a material fact?

a.

The color of the building

b.

The presence of smoke detectors

c.

The age of the building

d.

The number of windows in the building

Discuss
Answer: (c).The age of the building Explanation:In a fire insurance proposal, the age of the building is a material fact that should be disclosed.
Q15.
What type of material information should be disclosed in a marine insurance proposal?

a.

The captain's favorite food

b.

The description of the goods to be transported

c.

The ship's name

d.

The ship's paint color

Discuss
Answer: (b).The description of the goods to be transported Explanation:In a marine insurance proposal, the description of the goods to be transported is a material fact that should be disclosed.
Q16.
When proposing motor insurance, what information should be disclosed as a material fact?

a.

The vehicle's paint color

b.

The date of purchase

c.

The driver's favorite songs

d.

The driver's shoe size

Discuss
Answer: (b).The date of purchase Explanation:When proposing motor insurance, the date of purchase of the vehicle is a material fact that should be disclosed.
Q17.
In the context of health insurance, which of the following is considered a material fact?

a.

The number of friends the proposer has

b.

The proposer's favorite movie genre

c.

Any pre-existing disease

d.

The proposer's preferred vacation destination

Discuss
Answer: (c).Any pre-existing disease Explanation:In health insurance, any pre-existing disease is a material fact that should be disclosed.
Q18.
Why are questions in the proposal form for insurance considered material facts?

a.

To increase the premium amount

b.

To simplify the application process

c.

Because they relate to various aspects of the subject matter of insurance

d.

To make the form longer

Discuss
Answer: (c).Because they relate to various aspects of the subject matter of insurance Explanation:Questions in the proposal form for insurance are considered material facts because they relate to various aspects of the subject matter of insurance and its exposure to risk.
Q19.
In which of the following scenarios do material facts need not be disclosed?

a.

When renewing an existing insurance policy

b.

When there is a slight difference in the value of the insured property

c.

When the insured property has a different paint color

d.

When there is a change in the primary occupation of the insured

Discuss
Answer: (a).When renewing an existing insurance policy Explanation:Material facts generally need not be disclosed when renewing an existing insurance policy.
Q20.
Which of the following is a situation in which the insured has no obligation to disclose material facts unless specifically asked by the underwriters?

a.

When there is a slight difference in the value of the insured property

b.

When the insured property has a different paint color

c.

When measures to reduce the risk have been implemented

d.

When there is a change in the primary occupation of the insured

Discuss
Answer: (c).When measures to reduce the risk have been implemented Explanation:Measures implemented to reduce the risk do not need to be disclosed unless specifically asked by the underwriters.
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