Multiple Type Questions and Answer...(Insurance Law)



1. Choose the correct option...

A. In an insurance contract, an insurer makes an offer and the prospect accepts it.

B. In an insurance contract, a prospect makes an offer and an insurer accepts it.

C. In an insurance contract, an offer and acceptance is not a requirement.

D. In an insurance contract, no principles of contact are applicable.

Correct Answer: B. 


2. The consideration for the insurer under an insurance contract is 

a______(premium/sum insured)



Correct Answer - Premium


3. The consideration for an insured under an insurance contract is a_________________(compensation/premium).


Correct Answer - Compensation


4. Choose the correct options 

Statement - A: The minor can enter into an insurance contract. 

Statement B: The person with an unsound mind cannot enter into an insurance contract. 

A. Both statements are correct

B. Both statements are wrong

C. Statement A is correct

D. Statement B is correct

Correct Answer - D


5. Choose the correct options

Statement A: Insurance is a lawful business.

Statement B: Insurance is not gambling.

A. Both statements are correct

B. Both statements are wrong

C. Statement A is correct

D. Statement B is correct


Correct Answer - A



See Also...

Rights and liabilities of lessor and lessee

Leases Of Immovable Property, Definition and Essentials of the Valid lease

Formation of Life Insurance Contract

Duties and functions of insurance regulatory and Development Authority of India (IRDA)




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See Also..