Maureen concludes an
insurance contract, in terms of which she insures the life of her mother,
Martha, who is sixty years old. Maureen undertakes to pay to the insurer, Liberty Life, a monthly premium of R150, and the insurer undertakes to pay Maureen R200,000 when Martha dies.

Which ONE of the following statements is CORRECT ?

Question

Maureen concludes an
insurance contract, in terms of which she insures the life of her mother,
Martha, who is sixty years old. Maureen undertakes to pay to the insurer, Liberty Life, a monthly premium of R150, and the insurer undertakes to pay Maureen R200,000 when Martha dies.

Which  ONE  of the following statements is  CORRECT ?

Answer

The actual payment of the
premium is an essential requirement for the creation of an insurance contract.

Answer

Non-indemnity insurance is intended to compensate the
insured for non-patrimonial loss.

Answer

Indemnity insurance is
intended to compensate the insured for non-patrimonial loss.

Answer

The undertaking by the
insurer to pay the amount agreed upon in the event of the damage or loss
insured against is not an essential requirement for a valid insurance contract.

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Maureen concludes an insurance contract, in terms of which she insures the life...

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