Page 34 - Life Assurance

3) Under what condition, if any, is it
necessary to prove insurable interest on the part
of a beneficiary in life insurance? Explain.

4) Distinguish between the principle of
insurable interest and the principle of indemnity.

5) In an application for the insurance,
Mohamed stated that he had no illness, he went
to a physician only twice a year for a checkup,
and that he had no application for insurance
pending with any other company. Shortly after
the policy was issued, the insured died. The
company denied (refused) liability when it was
discovered that the insured had seen a doctor
six times within ten weeks preceding his
application. Furthermore, the insured had
applied to another insurance company for L.E
50,000 of life insurance at the same time.

a) May the insurance deny liability?
b) What legal principle of insurance is
involved in this case?

6) What is the connection between legality
in an insurance contract and the requirement of
insurable interest? Explain.

7) Why is it so important to have clear
provisions relating to adjustment in manuscript
policies?

98 Life41/life/life 08