Part II: Multiple choice Questions (1.5 pt) 1. Which of the following is not principle of insurance gontract? A. Principles of Insurable Interest B. Principles of Indemnity C. Principles of Subrogation D. Principles of Uimost Good Faith E. All F. None 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. Partners. 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

1. **F. None**. All of the options listed (Insurable Interest, Indemnity, Subrogation, and Utmost Good Faith) *are* principles of an insurance contract.<br /><br />2. **A. Principle of Insurable Interest**. This principle requires the insured to have a financial stake in the preservation of the insured object. Without a demonstrable loss, there's no insurable interest, and therefore no valid claim.<br /><br />3. **C. Agents**. Agents typically do not have an insurable interest in the lives of their clients, unless there's some specific financial dependency involved (which is rare). The other options represent relationships where insurable interest typically exists.<br /><br />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 lifelong coverage and benefits.<br />