Question 1

A property insurance policy which states just the maximum amount that will be paid by the insurer for any property is known a(n) _____.

Accepted Answer

A)  named peril policy 
B)  valued policy 
C)  open policy 
D)  floating policy 
A)  named peril policy 
B)  valued policy 
C)  open policy 
D)  floating policy C

Question 2

Which of the following is true of life insurance contracts?

Accepted Answer

A)  Life insurance contracts are commonly not claimable for cases of suicide. 
B)  Life insurance contracts are not applicable for minors. 
C)  Life insurance contracts do not include endowment contracts. 
D)  Life insurance contracts are not applicable for people over the age of 60. 
A)  Life insurance contracts are commonly not claimable for cases of suicide. 
B)  Life insurance contracts are not applicable for minors. 
C)  Life insurance contracts do not include endowment contracts. 
D)  Life insurance contracts are not applicable for people over the age of 60. A

Question 3

A term insurance policy is decreasing-term insurance plus a savings account.

Accepted Answer

A) True 
 B)False  False

Question 4

Explain the last chance clear rule.

Accepted Answer

Formerly, if the driver who sues neglige

Question 5

Which of the following is a double indemnity rider?

Accepted Answer

A)  A policy requiring an insured to pay twice the amount of face in the case of accidental death 
B)  A policy requiring an insurer to pay twice the ordinary amount in the case of death by  suicide 
C)  A policy requiring an insured to pay twice the amount of face in the case of death by war activity 
D)  A policy requiring an insurer to pay twice the ordinary amount in the case of death by natural causes 
A)  A policy requiring an insured to pay twice the amount of face in the case of accidental death 
B)  A policy requiring an insurer to pay twice the ordinary amount in the case of death by  suicide 
C)  A policy requiring an insured to pay twice the amount of face in the case of death by war activity 
D)  A policy requiring an insurer to pay twice the ordinary amount in the case of death by natural causes

Question 6

Life insurance is a contract by which the insurer agrees to pay a beneficiary a specified sum upon the death of the insured.

Accepted Answer

A) True 
 B)False

Question 7

Floating policies are used to cover circus paraphernalia.

Accepted Answer

A) True 
 B)False

Question 8

_____ contracts are those whereby the company assumes, for a specified period of time, the risk of the death of the insured.

Accepted Answer

A)  Endowment insurance 
B)  Savings insurance 
C)  Grace insurance 
D)  Term insurance 
A)  Endowment insurance 
B)  Savings insurance 
C)  Grace insurance 
D)  Term insurance

Question 9

Endowment insurance contracts are those whereby the company assumes, for a specified period of time, the risk of the death of the insured.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is covered under a fire insurance policy without any extended coverage?

Accepted Answer

A)  A fire caused by extreme heat in desert areas 
B)  A fire caused by an electrical fault in a factory 
C)  Smoke arising out of a singed electrical circuit 
D)  Smoke damage as a result of excessively overcooked food 
A)  A fire caused by extreme heat in desert areas 
B)  A fire caused by an electrical fault in a factory 
C)  Smoke arising out of a singed electrical circuit 
D)  Smoke damage as a result of excessively overcooked food

Question 11

If a member of the armed forces possessing a life insurance dies a natural death, the company can refuse to pay.

Accepted Answer

A) True 
 B)False

Question 12

An insurance policy designed to protect only third persons from bodily injury and property damage is known as a _____.

Accepted Answer

A)  floating insurance 
B)  public liability insurance 
C)  deductible clause insurance 
D)  comprehensive policy 
A)  floating insurance 
B)  public liability insurance 
C)  deductible clause insurance 
D)  comprehensive policy

Question 13

Scorching and searing from a friendly fire are covered under a fire insurance policy.

Accepted Answer

A) True 
 B)False

Question 14

Conversion is taking another's property without the owner's consent, with the intent to wrongfully deprive the owner of the property.

Accepted Answer

A) True 
 B)False

Question 15

When an insurance company declines to provide an individual with a poor driving record with automobile insurance:

Accepted Answer

A)  the driver is liable to remain without insurance. 
B)  the driver can obtain a policy through a state agency. 
C)  the driver must accept a policy with no third-party coverage. 
D)  the driver is excluded from the "assigned risk" rule. 
A)  the driver is liable to remain without insurance. 
B)  the driver can obtain a policy through a state agency. 
C)  the driver must accept a policy with no third-party coverage. 
D)  the driver is excluded from the "assigned risk" rule.

Question 16

A comprehensive policy covers only the hazards enumerated in the policy.

Accepted Answer

A) True 
 B)False

Question 17

Collision occurs when the colliding object consists of a natural phenomenon, such as rain.

Accepted Answer

A) True 
 B)False

Question 18

A contract of property insurance is one of compensation for loss that protects the policyholder from actual loss.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is covered under collision automobile insurance for a car?

Accepted Answer

A)  Unintentionally crashing the car while hauling a horse trailer 
B)  Crashing a car in the sidewalk while being in an drunk state 
C)  Damage to the car caused by a donkey kicking the door 
D)  Windshield damage as a result of a hailstorm 
A)  Unintentionally crashing the car while hauling a horse trailer 
B)  Crashing a car in the sidewalk while being in an drunk state 
C)  Damage to the car caused by a donkey kicking the door 
D)  Windshield damage as a result of a hailstorm

Question 20

The law requires life insurance companies to provide a grace period of 60 days in every life insurance policy.

Accepted Answer

A) True 
 B)False

Exam 38: Types of Insurance

A property insurance policy which states just the maximum amount that will be paid by the insurer for any property is known a(n) _____.

Which of the following is true of life insurance contracts?

A term insurance policy is decreasing-term insurance plus a savings account.

Explain the last chance clear rule.

Which of the following is a double indemnity rider?

Life insurance is a contract by which the insurer agrees to pay a beneficiary a specified sum upon the death of the insured.

Floating policies are used to cover circus paraphernalia.

_____ contracts are those whereby the company assumes, for a specified period of time, the risk of the death of the insured.

Endowment insurance contracts are those whereby the company assumes, for a specified period of time, the risk of the death of the insured.

Which of the following is covered under a fire insurance policy without any extended coverage?

If a member of the armed forces possessing a life insurance dies a natural death, the company can refuse to pay.

An insurance policy designed to protect only third persons from bodily injury and property damage is known as a _____.

Scorching and searing from a friendly fire are covered under a fire insurance policy.

Conversion is taking another's property without the owner's consent, with the intent to wrongfully deprive the owner of the property.

When an insurance company declines to provide an individual with a poor driving record with automobile insurance:

A comprehensive policy covers only the hazards enumerated in the policy.

Collision occurs when the colliding object consists of a natural phenomenon, such as rain.

A contract of property insurance is one of compensation for loss that protects the policyholder from actual loss.

Which of the following is covered under collision automobile insurance for a car?

The law requires life insurance companies to provide a grace period of 60 days in every life insurance policy.

Introduction to Law

Courts and Court Procedure

Business Torts and Crimes

Government Regulation of Business

Nature and Classes of Contracts

Offer and Acceptance

Capacity to Contract

Consideration

Defective Agreements

Illegal Agreements

Written Contracts

Third Parties and Contracts

Termination of Contracts

Nature of Personal Property

Special Bailments

Sales of Personal Property

Formalities of a Sale

Transfer of Title and Risk in Sales Con

Warranties, Product Liability, and Cons

Nature of Negotiable Instruments

Essentials of Negotiability

Promissory Notes and Drafts

Negotiation and Discharge

Liabilities of Parties and Holders in Due Course

Defenses

Nature and Creation of an Agency

Operation and Termination of an Agency

Employer and Employee Relations

Employees Rights

Labor Legislation

Introduction to Business Organization

Creation and Operation of a Partnership

Dissolution of a Partnership

Nature of a Corporation

Ownership of a Corporation

Management and Dissolution of a Corpora

Principles of Insurance

Security Devices

Bankruptcy

Nature of Real Property

Transfer of Real Property

Real Estate Mortgages

Landlord and Tenant

Wills, Inheritances, and Trusts

Filters