Chapter 2 – Insurance Contract

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  • Created by: Wg22
  • Created on: 20-02-22 20:18
The mandatory nature of part 4 of the Law of 4 April 2014 implies that the provisions relating to non-marine insurance policies must be complied with...
... unless the law provides for the possibility of derogating from them via specific agreements.
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What is an essential component of the insurance policy?
The premium.
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If the insurer determines that the risk did not exist at the time the policy was concluded...
... the insurance is null and void.
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What is one of the consequences of an insurance policy being null and void? The insurance policy...
... never existed since the policy was concluded.
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Who is always entitled to the insurance benefit in a life insurance policy?
The beneficiary.
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What is a correct description of the policyholder? The person who..
... concludes the insurance policy with the insurer.
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What is specific to lump-sum insurance?
The possibility of multiple policies.
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What constitutes underinsurance in compensatory insurance?
The insurable interest can be determined and the sum insured is less than the value of the insurable interest.
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Regarding fire insurance: damage to the insured owner’s building amounts to €10,000 and damage to the neighbouring building amounts to €1,000. The expert identifies 20% underinsurance on the insured’s building. What is the correct amount of compensation w
€8,000 for the insured’s building and €1,000 for the neighbour’s building.
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A policyholder takes out three fire insurance policies for the same building with three different insurers in order to be compensated three times. What are the consequences?
The insurers may claim the insurance policies are null and void and retain any premiums already paid.
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What right does the insurer have, in the case of a compensatory insurance policy, if the value of the insurable interest can be determined and the sum insured is less than this value, unless otherwise agreed? The insurer…
… may apply the average clause ("proportionality rule").
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What constitutes doubling up (cumulative insurance) for compensatory insurance?
The same insurable interest is insured with several insurers for the same risk.
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An accident with vehicle damage occurs during a business trip with an employee’s private vehicle. There is a doubling up (cumulative situation) between the comprehensive insurance taken out by the employee and the comprehensive work assignments insurance
The employee may claim from the insurer of his/her choice.
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How does subrogation work? The insurer…
... who has paid the compensation, exercises the rights and actions of the insured or the beneficiary against the third party responsible up to the amount paid.
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What form is used for risk assessment by the insurer?
The insurance proposal.
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Which form, as defined by law, is intended to provide provisional cover?
The insurance application.
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When does the insurance come into force where a pre-signed policy or insurance application is used?
The day after receipt of the form by the insurer, unless otherwise agreed.
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When an insurance proposal is used…
... neither the insurer nor the future policyholder is obliged to conclude the policy.
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When the insurer receives the insurance proposal...
... it must respond within 30 days.
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If, within 30 days of receipt of an insurance proposal, the insurer has not sent the future policyholder an insurance offer, a request for further information/inspection or a refusal to insure…
... it undertakes to conclude the contract under penalty of damages.
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Regarding an insurance application and a pre-signed policy, within what period must the policyholder be able to terminate a policy with a term of 30 days or more after it takes effect? Within a period of…
… 30 days for life insurance policies and capitalisation transactions, and 14 days for other insurance policies.
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What is stipulated in the legislation where the policyholder intentionally conceals information when concluding the policy?
The policy is null and void.
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Payment of the premium to an insurance intermediary is valid when the intermediary...
... demands the premium and is clearly authorised to do so.
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Which is the correct statement regarding intentional damage?
The insurer cannot be required to provide cover to a person who has deliberately caused the damage.
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The insurance proposal is a form that is drawn up by…
…the insurer
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In a general insurance policy. By whom should the insurable interest in a general insurance policy be represented?
The insured.
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What happens if the insurer forgets to request payment of the premium on the renewal date?
The insurance continues to apply after the renewal date and the policyholder must only pay when he/she receives a request to pay.
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What are the consequences for the premium where the policy is terminated at a time other than the annual renewal date? The insurer…
... refunds the unused portion of the premium.
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From when can the insurer, at the earliest, suspend cover for non-payment of the premium if it gives formal notice to the policyholder by registered letter?
15 days from the day after posting of the registered letter.
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What is the legal definition of “the insured” in general insurance? The person...
... who is covered by the property loss insurance.
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What is a correct description of the policyholder? The person who...
... concludes the insurance policy with the insurer.
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Which statement is correct? Hospitalisation insurance is insurance designed to...
... take the form of either a compensatory amount or a lump sum.
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What type of insurance can only guarantee the payment of a lump sum?
Life insurance.
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What is the legal definition of insurable interest in compensatory insurance?
An economic interest in preserving the item or in the integrity of the property.
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From when is there cover where an insurance application or pre-signed policy is used, unless otherwise agreed?
The day after receipt of the document by the insurer.
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What is the purpose of the insurance proposal?
To provide the insurer with the data required to enable it to assess the risk.
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An insurance application is a form in which...
... the insurer proposes covering the risk on a temporary basis.
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In which case can the insurer penalise the policyholder for providing incorrect information? The policyholder intentionally conceals information…
… that may impact the assessment of risk.
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What is the most substantial penalty an insurer can apply, in the event of a claim, where the policyholder has concealed information in good faith when concluding the policy and where the policyholder can be blamed for such unintentional concealment?
A reduction in the benefit.
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What is stipulated in the legislation when the policyholder, acting with fraudulent intent, has not reported an increase in the risk during the term of the policy?
A refusal of cover.
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What is the purpose of liability insurance?
To protect the insured’s assets against debts resulting from proven liability.
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What is the benefit of liability insurance?
Bodily injury and property damage caused to third parties.
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What are the possible legal sanctions in the event of non-payment of the premium?
Suspension of cover or policy termination.
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A claim for water damage under a fire insurance policy is only reported two months after the event, even though the insurance policy provides for a reporting period of 8 days after the damage is noted. What are the consequences of this? The insurer…
... may reduce its benefits to the extent of any loss it has suffered as a result of the delay.
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What are the consequences of the death of the policyholder under fire insurance? The insurance...
... continues with a right of termination for the insurer and the beneficiaries.
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What are the consequences for the premium where the policy is terminated at a time other than the annual renewal date? The insurer…
... refunds the unused portion of the premium.
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Who can terminate the insurance policy within 3 months of the declaration of the policyholder’s bankruptcy?
The trustee.
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From when does fire insurance automatically come to an end when a building is transferred inter vivos?
3 months after the date on which the notarised deed is drawn up.
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What is the general limitation period for any legal action arising from the insurance policy (apart from the exceptions provided for by law)?
3 years.
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What is the limitation period for any legal action resulting from the injured person’s direct right of action against the liability insurer?
5 years.
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Which statement is NOT correct? Health & life insurance that is not life assurance is intended to…
... provide an additional lump sum at the time of retirement.
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When can the benefit under a mixed life insurance policy be paid?
At the time of retirement or after the death of the insured.
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What is NOT a purpose of life insurance?
Covering the financial consequences of hospitalisation.
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Other cards in this set

Card 2

Front

What is an essential component of the insurance policy?

Back

The premium.

Card 3

Front

If the insurer determines that the risk did not exist at the time the policy was concluded...

Back

Preview of the front of card 3

Card 4

Front

What is one of the consequences of an insurance policy being null and void? The insurance policy...

Back

Preview of the front of card 4

Card 5

Front

Who is always entitled to the insurance benefit in a life insurance policy?

Back

Preview of the front of card 5
View more cards

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