Chapter 4 Flashcards
(6 cards)
1
Q
What is a physical hazard?
A
A physical hazard relates to the physical characteristics of a risk
2
Q
What is a moral hazard?
A
The human hazards that influence the outcome of a risk
3
Q
List the methods used to obtain material information
A
Proposal forms Surveys Supplementary questionnaires Slip presentation Meetings with the client Writing to the proposer Telephone Internet
4
Q
3 examples of “non risk specific” questions found in a proposal form
A
Prospers name
Proposers address
Proposers occupation
Period of insurance
5
Q
What is a cover note?
A
Is a document issued as evidence that the insurance has been granted, pending the issue of a policy and, if appropriate, a certificate.
6
Q
What is meant by the term - insurance premium?
A
Insurance premium is the amount paid to an insurer in consideration of the insurers acceptance of risk
