Insurance WAEC

Proposal Forms

Muhtasari

Before any insurer will cover you, it wants to know exactly who you are, what you own, and what you are asking it to carry. It gathers all of that on one printed sheet: the proposal form. It looks like an ordinary application, yet the small print at its foot quietly turns every answer you write into a promise, and that promise decides whether your claim is ever paid.

In this lesson you will learn what a proposal form is, the five kinds of information it collects, and the work it does for the underwriter who prices your risk. You will see how it puts the duty of disclosure into practice, why the declaration at the bottom matters more than anything above it, and the exact mistakes on a form that let an insurer walk away from a claim.

Malengo

  1. Define a proposal form and describe the information it gathers
  2. Explain the functions and uses of a proposal form in the underwriting process
  3. Explain how the proposal form gives effect to the duty of disclosure
  4. Describe the legal status of the proposal form once the contract is concluded

Ramani ya mawazo

Mada hii imechorwa ili uone jinsi mawazo yanavyounganika.

Kadi za kumbukumbu

Mazoezi ya haraka ya kumbukumbu kuhusu kinachopimwa katika mada hii.

Maelezo ya Somo

A driver in Ibadan fills in a motor proposal form. Where it asks whether anyone else will drive the car, she writes that she alone will. Months later her nephew borrows the car, crashes it, and she puts in a claim. The insurer reads the form, points to her answer, and refuses to pay a kobo. She feels cheated, but the ground was laid the day she signed. Every word on a proposal form can be held against the person who wrote it, because the form is where the whole contract of insurance begins. Learn how it works and you learn where cover is won and lost.

Tathmini ya Somo

Hongera kwa kukamilisha somo la Proposal Forms. Sasa kwa kuwa umechunguza dhana na mawazo muhimu, ni wakati wa kuweka ujuzi wako kwa mtihani. Sehemu hii inatoa mazoezi mbalimbali maswali yaliyoundwa ili kuimarisha uelewaji wako na kukusaidia kupima ufahamu wako wa nyenzo.

Utakutana na mchanganyiko wa aina mbalimbali za maswali, ikiwemo maswali ya kuchagua jibu sahihi, maswali ya majibu mafupi, na maswali ya insha. Kila swali limebuniwa kwa umakini ili kupima vipengele tofauti vya maarifa yako na ujuzi wa kufikiri kwa makini.

Tumia sehemu hii ya tathmini kama fursa ya kuimarisha uelewa wako wa mada na kubaini maeneo yoyote ambapo unaweza kuhitaji kusoma zaidi. Usikatishwe tamaa na changamoto zozote utakazokutana nazo; badala yake, zitazame kama fursa za kukua na kuboresha.

  1. The document a person completes to apply for insurance cover is the: A. Cover note B. Policy document C. Proposal form D. Renewal notice Answer: C
  2. The person who completes a proposal form is known as the: A. Underwriter B. Proposer C. Broker D. Actuary Answer: B
  3. The clause at the foot of a proposal form that makes every answer a warranty is the: A. Arbitration clause B. Average clause C. Basis of the contract clause D. Excess clause Answer: C
  4. A proposal form gives effect chiefly to the principle of: A. Indemnity B. Utmost good faith C. Contribution D. Subrogation Answer: B
  5. Which of the following is NOT normally a function of a proposal form? A. Supplying information to the underwriter B. Helping to fix the premium C. Paying the claim to the insured D. Providing a record of what the proposer disclosed Answer: C

Vitabu Vinavyopendekezwa

Principles of Risk Management and Insurance
Principles of Risk Management and Insurance
Manukuu: Thirteenth edition
Mchapishaji: Pearson
Mwaka: 2016
ISBN: 978-0-13-408257-8
Maelezo: The standard introduction to risk and insurance, covering risk management, insurer operations and the main lines of life, health, property and liability cover.
Fundamentals of Risk and Insurance
Fundamentals of Risk and Insurance
Manukuu: Tenth edition
Mchapishaji: Wiley
Mwaka: 2008
ISBN: 978-0-470-08753-4
Maelezo: A clear account of the nature of risk and the economics of insurance, written for beginning students across life, health, property and liability insurance.
Fundamentals of Insurance
Fundamentals of Insurance
Manukuu: Second edition
Mchapishaji: Himalaya Publishing House
Mwaka: 2017
ISBN: 978-93-5097-079-9
Maelezo: An accessible treatment of insurance in four parts: the basics of risk, insurance management, life insurance and non-life insurance.

Maswali ya Marudio

Unajiuliza maswali ya zamani kuhusu mada hii yanaonekanaje? Hapa kuna idadi ya maswali kuhusu Proposal Forms kutoka miaka iliyopita.

WAEC SSCE - Insurance - 2017

Swali 1 Ripoti

(a)(i) What is a proposal form?
(ii) List four general questions that are contained in a proposal form.

(b) List and explain three documents used in effecting insurance contracts. 
 

Maelezo ya Majibu

(a)(i) What a proposal form is

A proposal form is the printed document supplied by the insurer which the intending insured (the proposer) completes and signs to apply for insurance cover. It contains a set of questions through which the proposer supplies all the material facts about himself and the subject matter of the insurance. The information given forms the basis of the contract, enabling the insurer to assess the risk, decide whether to accept it and fix the appropriate premium.

(a)(ii) Four general questions contained in a proposal form

  1. The full name and address of the proposer.
  2. The age, sex and occupation of the proposer.
  3. A description of the subject matter to be insured and the sum to be insured (its value).
  4. Details of previous insurance and claims history, including whether any insurer has ever declined, cancelled or refused to renew a policy.

(Other acceptable general questions: the period of insurance required and a declaration that the answers are true.)

(b) Three documents used in effecting insurance contracts

  • Proposal form: As explained above, it is the document by which the proposer formally applies for cover and discloses the material facts on which the insurer bases its decision. It represents the offer stage of the contract.
  • Cover note: A temporary document issued by the insurer to confirm that cover is in force pending the preparation of the full policy. It gives the insured immediate protection and states the main terms, remaining valid for a short period (often 30 or 60 days) until the policy document is ready.
  • Insurance policy (policy document): The formal, legal contract between the insurer and the insured. It sets out in detail the names of the parties, the subject matter, the risks covered, the sum insured, the premium, the period of cover, the exclusions and the conditions. It is the conclusive evidence of the terms of the agreement.

(The certificate of insurance and the premium receipt are also acceptable documents.)

Tazama Jibu