Question 1

How does a deductible affect the amount an insurance company must pay?

Accepted Answer

A) not at all; the deductible is a matter between two insureds 
B) the insurance company pays the loss less the deductible 
C) the amount of the deductible is added to the loss amount 
D) the deductible is added to the annual cost of premiums 
A) not at all; the deductible is a matter between two insureds 
B) the insurance company pays the loss less the deductible 
C) the amount of the deductible is added to the loss amount 
D) the deductible is added to the annual cost of premiums B

Question 2

A general description is sufficient for establishing the value of items insured by property insurance.

Accepted Answer

A) True 
 B)False  False

Question 3

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 4

Which of the following is a double indemnity rider?

Accepted Answer

A) A policy requiring an insurer 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 insurer 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 5

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 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

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

Accepted Answer

A) True 
 B)False

Question 8

Floating policies are used to cover circus paraphernalia.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

If the insured dies with an endowment insurance contract, the beneficiary will collect only a portion of the face value of the contract.

Accepted Answer

A) True 
 B)False

Question 12

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

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 13

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.

Question 14

The maximum amount paid for total loss of property is the face of the policy or the value of the property

Accepted Answer

A) not affected by 
B) equal to the average of 
C) the greater of 
D) the lesser of 
A) not affected by 
B) equal to the average of 
C) the greater of 
D) the lesser of

Question 15

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 16

Explain the last chance clear rule. ​

Accepted Answer

Formerly, if the driver who sues neglige

Question 17

Bodily injury insurance does not cover any injury to the person or property of the insured.

Accepted Answer

A) True 
 B)False

Question 18

A term insurance policy is one where the company assumes, for a specified period of time, the risk of the death of the insured.

Accepted Answer

A) True 
 B)False

Question 19

The grace period refers to the period of time in which an insurance company may investigate a death before paying the face.

Accepted Answer

A) True 
 B)False

Question 20

What is renewable about renewable term insurance?

Accepted Answer

A) the policy may be renewed or transferred to the life of family member 
B) the premium, because it is guaranteed never to increase 
C) the policy may be transferred to another company 
D) the term of the policy may be extended without a physical examination 
A) the policy may be renewed or transferred to the life of family member 
B) the premium, because it is guaranteed never to increase 
C) the policy may be transferred to another company 
D) the term of the policy may be extended without a physical examination

Exam 36: Types of Insurance

How does a deductible affect the amount an insurance company must pay?

A general description is sufficient for establishing the value of items insured by property 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 a double indemnity rider?

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

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

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

Floating policies are used to cover circus paraphernalia.

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

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

If the insured dies with an endowment insurance contract, the beneficiary will collect only a portion of the face value of the contract.

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

Which of the following is true of life insurance contracts? ​

The maximum amount paid for total loss of property is the face of the policy or the value of the property

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

Explain the last chance clear rule. ​

Bodily injury insurance does not cover any injury to the person or property of the insured.

A term insurance policy is one where the company assumes, for a specified period of time, the risk of the death of the insured.

The grace period refers to the period of time in which an insurance company may investigate a death before paying the face.

What is renewable about renewable term insurance?

Introduction to Law

Courts and Court Procedures

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 Contracts

Warranties Product Liability and Consumer Protection

Nature of Negotiable Instruments

Essentials of Negotiability

Promissory Notes and Drafts

Negotiation and Discharge

Liabilities of Parties, Holders in Due Course and Defenses

Nature and Creation of an Agency

Operation and Termination of an Agency

Employer and Employee Relations

Employees Rights

Introduction to Business Organizations

Creation and Operation of a Partnership

Dissolution of a Partnership

Nature of a Corporation

Ownership of a Corporation

Management and Dissolution of a Corporation

Principles of Insurance

Security Devices

Bankruptcy

Nature of Real Property

Transfer of Real Property

Real Estate Mortgages

Landlord and Tenant

Wills Inheritances and Trust

Filters

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

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

Which of the following is true of life insurance contracts?

Explain the last chance clear rule.