Proportional reinsurance … 

Mr.

Maswanganyi  insured his car, valued at

R400 000, with Company X for R150 000 and Company Y for R250 000. Mr.

Maswanganyi is involved in an accident and damage to his car amounts to R25

000. His claim, however, is repudiated due to some technical reasons. Company

Y, however, decided to make an ex-gratia payment of R15 625 to Mr. Maswanganyi.

Based on the

aforementioned scenario, indicate the correct statement.

Indicate the correct

statement

The financial statements of the

business show a low concentration of inventory at the beginning of its sales

cycle with an equally low concentration of receivables at the end of the sales

cycle. The inventory and receivable levels are indicative of …

In July 2021, South Africa experienced widespread civil unrest and riots, particularly in KwaZulu-Natal and Gauteng. These incidents were triggered by the arrest of former President Jacob Zuma and quickly escalated into looting, arson, and violence in various areas. The riots affected businesses, infrastructure, and communities, which had significant economic and social consequences. The South African government and law enforcement agencies responded by deploying military personnel to restore order and protect affected areas. Which type of reinsurance would be most suitable for an insurer seeking to protect itself against a catastrophic event such as a riot that could result in exceptionally high claims?

Mr Albany is an electrician. Apart from the work tools he carries with him, he carries wires and pipes and in many cases electrical equipment that needs to be fitted at clients’ premises. In terms of goods in transit insurance, the following items will be covered:  

Bokang Construction, a reputable construction company in Ditsobotla, North West, embarked on a large-scale residential housing project aimed at providing affordable homes for the local community. The project is critical for addressing the housing shortage in the region. The area is known for experiencing unpredictable weather patterns and infrastructure challenges, which could potentially impact the construction timeline and budget of the housing project. The principle of utmost good faith is crucial in insurance underwriting. What does this principle require from Bokang Construction when applying for insurance?

Advanced listing …           

a.     entails the listing of policies due for renewal.

b.     are done four months before the renewal date of policies.

c.     are a long process completed manually by the claims department.

d.     enables the underwriter to rate the claims experience for the policy.

Choose

the correct combination

An

excessive claim reserve may result in an …

An insurer enters into a

quota share arrangement with the ceding insurer retaining 60% of any loss. How

much will the insurer pay if the loss amounts to R60 000 under an R100 000

policy, and the insurer retains 60% of the loss?