Exam 32: Insurance

Darcy buys a life insurance policy on her own life,under which she pays the annual premiums.The insurance is issued for a specific period,but is renewable for similar periods.Darcy is covered only as long as she makes the payments.There is no cash value portion to the policy.Darcy probably owns:

A lie on an insurance application will make the policy void even if the lie does not relate to the actual loss insured against.

Liability insurance would cover:

The owner,the insured and the beneficiary are all the same person in an insurance contract.

Jose and Juanita are first cousins.Jose lives in San Francisco,California; Juanita lives in Toronto,Canada.The two have met only once in life,and may never meet again.Nonetheless,because they are blood relatives,Juanita has an insurable interest in Jose's life.

Insurance experts recommend that workers carry disability insurance to replace of their income.

Most Americans spend a considerable percentage of their disposable income on insurance.What can you do to reduce this expense?

Sarah has car insurance.While driving her automobile,Sarah negligently ran a red light and hit Vi's car.Which type of coverage will pay for the damage done to Vi's car?

An insurance policy must meet which of the following?

Disability insurance is important because the average person is seven times more likely to be disabled for at least 90 days than to die before age 65.

Liability policies,such as personal liability,professional malpractice,or business liability insurance,do not protect the insured against:

Insurance obtained by a limited partnership on the life of the general partner would be:

Which of the following is generally covered under casualty insurance?

Which of the following insurance policies continue for a stated period of time with the premiums increasing with the age of the insured?

Pamela applies for a life insurance policy with Forever Young Insurance Company.When completing the application form about past surgeries,Pamela forgot about a past outpatient surgery when she had an infected hang-nail removed and her toe treated.One year after issuing the policy,Pamela died suddenly from a brain aneurysm.Forever Young denies payment under the policy based on misrepresentation.If Pamela's sister,Paula,sues Forever Young,she will:

Under which of the following does the insured have a right to borrow against his policy.

An insurance policy must meet all the common law requirements for a contract.

Insurance policies often contain a covenant of good faith and fair dealing.Even if the clause is not in the policy,often courts will imply it.Explain the covenant of good faith and fair dealing and provide an example illustrating when an insurance company might breach this covenant.

Victor purchased $1 million of insurance on his home even though the house was only worth $500,000.Victor's house was destroyed by lightning.Under the insurance policy,Victor will be able to recover $1 million.

The simplest,cheapest life insurance option is whole or straight life.