Observation

The performance of the candidates on this question was poor. Some of the responses expected from the candidates are as follows:

(a) Risk is:

- an uncertainty of loss;

- a possibility of loss;

- a combination of the possibility of occurrence of an undesired outcome (loss and its consequences) - used to describe liability undertaken by the insurer;

- used to describe the subject matter of insurance;

- used to describe the perils insured;

- the danger individuals are likely to face in their day to day activities.

(b) Features of insurance contracts are:

- insurable interest;

- utmost good faith

- warranties;

- aleatory;

- personal contract;

- offer;

- acceptance;

- consideration;

- adhesion;

- contractual capacity;

- intention to create legal relationship/obligations;

- legality.