Mannings Six Principles of General Insurance: Questions & Answers

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Chapter 5

Q5. 1

One of the principles underlying the requirement of insurable interest was to guard against:




Q5. 2

The fifth principle of general insurance insurable interest has been done away with in New Zealand, except as provided in the Marine Insurance Act 1908 (NZ).



Q5. 3

Insurable interest, in simplest terms, requires that in order to insure something, an Insured must own something:




Q5. 4

The principle of insurable interest has its origin in:




Q5. 5

The rules covering insurable interest are much stricter for:



Q5. 6

Is it possible for a purchaser to be deemed an Insured under the vendor’s contract of insurance.



Q5. 7

Under common law, which of the following is not a criterion for insurable interest to be met?





Q5. 8

Under the Insurance Contracts Act 1984 (Cth) legal or equitable interest is not required at the time of loss.



Q5. 9

Section 49 of the Insurance Contracts Act 1984 (Cth), rather than affecting a named Insured’s insurable interest, statutorily includes entities unknown to the insurer, as ‘Insureds’, subject of course to strict notice requirements.



Q5. 10

The Insured must contract directly with the insurance company in order for it to acquire rights under the policy.



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