1. Which of the following is not principle of insurance contract? A. Principles of Insurable Interest B. Principles of Indemnity C. Principles of Subrogation D. Principles of Uimost Good Faith E. All F. None Part II: Multiple choice Questions (1.5 pt) 2. Under which principle an insured must demonstrate a personal loss or the insured will be unable to collect amounts due when a loss due to the insured peril occurs? A. Principles of Insurable Interest B. Principles of Indemnity C. Principles of Subrogation D. Principles of Utmost Good Faith 3. Insurable interest exists in life in all of the following except; A. Self-insurance B. Husband and Wife C. Agents D. Creditors and Debtors E. Parmers. 4. Which of the following provides protection only for a definite period of time? A. Term insurance B. Whole life insurance C. Endowment insurance D. Annuities

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1. Which of the following is not principle of insurance contract? A. Principles of Insurable Interest B. Principles of Indemnity C. Principles of Subrogation D. Principles of Uimost Good Faith E. All F. None Part II: Multiple choice Questions (1.5 pt) 2. Under which principle an insured must demonstrate a personal loss or the insured will be unable to collect amounts due when a loss due to the insured peril occurs? A. Principles of Insurable Interest B. Principles of Indemnity C. Principles of Subrogation D. Principles of Utmost Good Faith 3. Insurable interest exists in life in all of the following except; A. Self-insurance B. Husband and Wife C. Agents D. Creditors and Debtors E. Parmers. 4. Which of the following provides protection only for a definite period of time? A. Term insurance B. Whole life insurance C. Endowment insurance D. Annuities

Answer 1

1. **F. None**. All of the options listed (Insurable Interest, Indemnity, Subrogation, and Utmost Good Faith) *are* principles of an insurance contract.2. **A. Principle of Insurable Interest**. This principle requires the insured to have a financial stake in the insured item or person. Without insurable interest, there is no real loss to the insured, and therefore, no valid claim.3. **C. Agents**. Agents typically do not have an automatic insurable interest in the lives of their clients. The other options represent relationships where insurable interest generally exists.4. **A. Term insurance**. Term life insurance provides coverage for a specific period (the "term"). Whole life, endowment, and annuities offer longer-term or even lifetime coverage.

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