Exam 28: Insurance

Identify the test for whether the insured has an insurable interest in the thing being insured,and briefly explain the rationale behind this rule.

An insurance company can deny coverage for non-disclosure even if the loss has nothing to do with the matter that was left undisclosed.

What is the name given to the rule that prevents an insured from collecting on insurance when the loss has resulted from the insured's willful misconduct?

Explain the distinction between an insurance broker and an insurance adjuster.

How does comprehensive general liability (CGL)insurance differ from automobile liability insurance?

What is the primary value of insurance to business enterprise?

Why is environmental impairment liability insurance expensive and difficult to obtain?

What insurance product would protect against loss for injury and property damage related to the operation of a business's vehicles?

Which of the following liability risks would be adequately managed by errors and omissions insurance?

Explain the extent of coverage provided by errors and omissions insurance and how that coverage may be compromised.

Comprehensive general liability insurance coverage generally extends only to unintentional torts,rather than intentional torts.

Jeremy leased a car from AstroCar Leases pursuant to a three-year lease with a buyout option at the end of the three-year period.While he is the primary driver,he permits his girlfriend to drive the car on occasion.Who has an insurable interest in the car?

Which of the following is a problem that may be addressed by directors and officers obtaining separate coverage or a further layer of insurance coverage independently from the corporation?

What type of insurance would provide payment in circumstances where the insured is held legally responsible for causing the loss or damage to a third party?

An insurance contract is classified as a contract of indemnity because the insured is not supposed to profit from an insured loss; rather,the insured is meant to come out even.

An endorsement is a clause altering or adding coverage to a standard insurance policy.

Which of the following would occupiers' liability insurance protection strongly support?

Each province in Canada has an automobile insurance scheme that is based on either a tort-based liability system or a no-fault liability system for compensating claims for bodily injury or death.

Why must an insured avoid acknowledging liability for a loss?

Briefly explain why the law places the duty of disclosure on the insured.