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    Question

    What is called when insurance contract comes into

    existence when one party makes an offer or proposal of a contract and the other party accepts the proposal?
    A Nature of contract Correct Answer Incorrect Answer
    B Utmost Good Faith Correct Answer Incorrect Answer
    C Principle of Contribution Correct Answer Incorrect Answer
    D Double Insurance Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Insurance contract come into existence when the person seeking insurance make an offer to the insurance company. If the insurance company accepts, this therefore become a contract between them and the insured has to pay some premium as consideration

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