Licentiate Examination - IC 01 - Principles of Insurance Exam - Important Points
Page 25 Of 45
Go to:
Material Facts - A fact is said to be material, if it affects the decision of the underwriter to accept or reject the risk or to determine rates, terms and conditions if the risk is accepted. That is, if the 'fact' is relevant to the assessment of the risk and determination of the premium.
Ways in which principle of Utmost Good Faith may be breached - Non-disclosure, Misrepresentation
Non-disclosure - Not disclosing material facts
Misrepresentation - Giving wrong information
Duty of disclosure in life insurance - In life insurance, the duty of disclosure ends with the completion of the contract.
MODELEXAM® 
www.realsoftinfoplan.com