Licentiate Examination - IC 11 - Practice of General Insurance Exam - Important Points
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Cover Notes - a cover note is issued to confirm protection under the policy. It gives description of cover. Validity of cover note is usually for a period of a fortnight and rarely up to 60 days
Cover notes - predominantly in marine and motor classes of business. Marine Cover Notes - issued when details required for the issue of policy such as name of the steamer, number of packages, or exact value etc. are not known.
Motor Cover note is to be issued for 60 days.
The fact which reduces the risk need not be disclosed
Insurer is prohibited from accepting the risk unless full premium is paid in advance as per Section 64 VB of the Insurance Act 1938.
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