Part I: True or False: (2 marks, 0.5 each) (ILOs: A1, C1)

1. A business firm is allowed to insure the life of its CEO if a pecuniary interest is proven to the insurer.

(T / F)

2. The reason insurance contracts contain a coinsurance clause is to maintain fairness in rating.

(T / F)

3. An insurance contact is unilateral, which means that the values exchanged between the insured and insurer are not equal.

(T / F)

4. Replacement cost less depreciation is the best method used in determining indemnity for real estate property.

(T / F)