There are four legal principles we discussed in class; these include all except:

a. Principle of indemnity

b. principle of insurable interest

c. principle of subrogation

d. principle of utmost bad faith

25.Why does an insured need insurable interest in property?

a. To receive a windfall

b. To prevent gambling

c. To reduce moral hazard

d. To measure the amount of the insureds loss in property insurance

Insurance contracts have certain legal characteristics that include all of the following except:

a. Unilateral

b. Personal

c. Aleatory

d. Contract of Ability

Bonus +1: Describe what an Aleatory Contract is:

30.What is the practical significance of the doctrines of Waiver and Estoppel?

a. Insurers are not required to pay claims

b. Insurers are legally required to pay claims they would not normally be required to pay

c. Insurers Agents can process payments of claims

d. Claim payments are denied