The case of Macaura v Northern Assurance Co Ltd [1925] was dealing with the principle of

a. Insurable Interest

b.Material facts

c.Cover note

What is material facts?

a. A material facts is the facts that would influence the mind of a prudent insurer in deciding whether to accept the risk or not.

b. A material facts is the fact that would be collateral to the terms of the insurans contract.

c. A material facts is the facts that would not influence a mind of a prudent insurer in deciding whether to accept the risk or not.

3.What is the effect of the insurance contract if a person fails to disclose a fact that is material?

a. The contract is valid

b.The contract is voidable

c.The contract is void

4.What is exemption clause?

a. Exemption clause is the clause which seek to exempt the insured from some liability which he would otherwise be under.

b.Exemption clause is the clause which seek to exempt the insurer from some liability which he would otherwise be under.

c. Exemption clause is the clause which would not give any effect to the liability of both parties in the insurance contract.

5.Ally has insured his house for RM1 million with the Excellent Insurance (El). One day, his house was caught on fire and caused him lost estimated RM500,000. The El then pay him RM500,000. This situation illustrated that insurance is a contract of

a.Indemnity

b.Subrogation

c.Uberrimae fidei

6.An agency is created through verbal or written authorization by the principal to the agent. This statement is referring to the

a.Implied agency

b.Express agency

c.Agency by ratification

7.Melly stays in shah Alam and has a shop in Kuala Lumpur. Melly has appointed Ronny to manage her shop. Most of the time, Ronny who manages the shop, orders and pays goods from Mickey, using Melly's name. Ronny has acted as an

a.Agency by ratitication

b.Agency by implied appointment

c.Agency by necessity

8.Gary as an agent failed to insured a ship when he is instructed to do so by his principal and the ship was lost. These are the effects of failure to follo w the principals' instruction EXCEPT:

a. Failure to follow the instruction will not result in breach of contract, but the agent needs to pay damages for any loss suffered by the principal.

b. Failure to follow the instruction will result in breach of contract

c.Agent will be liable for any loss suffered by the principal.

9.There are several conditions to be fullfilled before the agency of necessity can be created: i. It is i mpossible for the agent to get the principal's instruction. ii. The agent of necessity has acted in good faith.

a.i, ii, ii

b.i.ii

c.i,iii