(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.
Explanation
(a)(i) What is a proposal form?
Proposal form is a questiOnnaire designed by the insurers to enable the proposer provide vital information reqUired for the underwriting of a risk proposed for insurance.
(ii) General questions contained in a proposal. form are:
(1) Name of the proposer.
(2) Address of the proposer
(3) Occupation of the proposer.
(4) Location.of the proposer.
(5) Information on previous losses.
(6) Information on previous insurance history.
(7) ‘Information relating to previous proposal.
(8) Value proposed for insurance
(9) Telephone uiumber of proposer.
(10) Current .insurance cover.
(b) Documents used in effecting insurance contracts are:
(i).Proposal form: This is. a questionnaire designed by the insurers to enable the proposer provide ‘vital information required for the underwriting Of the risk proposed for insurance.
(ii) Cover notes: This is a document issued by the insurers to provide evidence that cover has been granted pending the issuance of a permanent document. It is also known as a temporary policy of insurance issued where infOrmation needed.to prepare, the policy document is not yet available.
(iii) Certificate of insurance: This is a document that is legally required to be issued by approved insurers in respect of compulsory insurances.
(iv). Policy: This is a document issued by the insurer to evidence the insurance contract which spells out the terms and conditions of contract. . . .