Date B Question 4 (14 marks) a. What is 'utmost good faith' in insurance? 4 marks b. What is a material fact' in insurance? Give one example of material fact for each of the following insurance policies: (0) Homeowners' Insurance (ii) Health (Medical) Insurance (i) Marine Cargo Insurance (iv) Motor Insurance (v) Products Liability Insurance Briefly explain. 10 marks Question 5 (16 marks) a. What is a deductible' in insurance? 2 marks b. Whole Meal Store incurred the following insured losses, in the order given, during the current policy period: Loss Amount of loss (5) 2 Mar 2021 A 6,000 6 July 2021 8,000 1 Sept 2021 15,000 How much would the insurance company pay for each loss if the Whole Meal's policy contained the following type of deductible? i. $5,000 straight deductible ii. $25,000 annual aggregate deductible 7 marks c. Luke is insured under an individual major medical insurance policy with a lifetime limit of $1 million. His major medical insurance policy includes a calendar-year deductible of $5,000, and an 85-15 percent coinsurance provision. Last week, Luke was hospitalized for a surgical procedure to remove a bump oh his foot. Assuming that this hospitalization was the first medical care that Luke received during the year and that all of the hospital medical expenses were eligible for coverage under the policy. i. If the covered medical expenses were $38,000, how much will Luke's medical insurance policy pay? How much will Luke be required to pay? Show all your calculations 4 marks ii. What purposes does a co-insurance clause serve in a major medical insurance policy? 3 marks