Question 1

Dyan and Ed are partners who own and operate Footlong's, a chain of hot-dog stands. Their partnership obtains insurance on their lives. This is

Accepted Answer

A)  disability insurance. 
B)  death insurance. 
C)  key-person insurance. 
D)  liability insurance. 
A)  disability insurance. 
B)  death insurance. 
C)  key-person insurance. 
D)  liability insurance. C

Question 2

Gil obtains from Health Insurance Company a policy that provides that Gil has thirty days after a premium's due date to pay it before the policy will be canceled. This is

Accepted Answer

A)  an arbitration insurance clause. 
B)  an antilapse clause. 
C)  an appraisal clause. 
D)  an incontestability clause. 
A)  an arbitration insurance clause. 
B)  an antilapse clause. 
C)  an appraisal clause. 
D)  an incontestability clause. B

Question 3

Misstatements in an insurance application can void a policy.

Accepted Answer

A) True 
 B)False  True

Question 4

Group insurance provides individual coverage obtainable by persons who are members of certain groups.

Accepted Answer

A) True 
 B)False

Question 5

In some instances, the insurance applicant is not protected until a formal written policy is issued.

Accepted Answer

A) True 
 B)False

Question 6

Jason wants to insure himself against injuries and damage resulting from the operation of his taxi that he owns. Jason should obtain

Accepted Answer

A)  automobile insurance. 
B)  disability insurance. 
C)  group insurance. 
D)  life insurance. 
A)  automobile insurance. 
B)  disability insurance. 
C)  group insurance. 
D)  life insurance.

Question 7

Rick obtains an insurance policy from Stable Insurance Inc. The policy provides that on Rick's death Stable will pay $500,000 to Taylor, the beneficiary. This is

Accepted Answer

A)  health insurance. 
B)  key-person insurance . 
C)  life insurance. 
D)  disability insurance. 
A)  health insurance. 
B)  key-person insurance . 
C)  life insurance. 
D)  disability insurance.

Question 8

Actions that are against public policy can give the insurance company a defense against the payment of a claim.

Accepted Answer

A) True 
 B)False

Question 9

Cutting Edge Corporation makes and sells knives, scissors, garden shears, and other cutting devices. To cover injuries to consumers if the products prove defective, Cutting Edge should obtain

Accepted Answer

A)  group insurance. 
B)  key-person insurance. 
C)  liability insurance. 
D)  life insurance. 
A)  group insurance. 
B)  key-person insurance. 
C)  liability insurance. 
D)  life insurance.

Question 10

A filled-in application for insurance is usually attached to the policy and made of the insurance contract.

Accepted Answer

A) True 
 B)False

Question 11

Multi-Enterprise Corporation offers its employees, as an employment benefit, individual medical insurance coverage. This is

Accepted Answer

A)  liability insurance. 
B)  disability insurance. 
C)  group insurance. 
D)  key-person insurance. 
A)  liability insurance. 
B)  disability insurance. 
C)  group insurance. 
D)  key-person insurance.

Question 12

An insurance contract is called a premium .

Accepted Answer

A) True 
 B)False

Question 13

Roma obtains a fire insurance policy on her house with Safe-wise Insurance Company. This policy is an arrangement best described as

Accepted Answer

A)  avoiding the assumption of responsibility. 
B)  predicting a potential loss based on unknown factors . 
C)  shifting the imposition of liability. 
D)  transferring and allocating risk. 
A)  avoiding the assumption of responsibility. 
B)  predicting a potential loss based on unknown factors . 
C)  shifting the imposition of liability. 
D)  transferring and allocating risk.

Question 14

Courts interpret the words used in an insurance contract as if most people have the special training necessary to understand the intricate terminology.

Accepted Answer

A) True 
 B)False

Question 15

Insurance policies differ in relation to the persons and interests that they protect.

Accepted Answer

A) True 
 B)False

Question 16

Anne obtains a liability insurance policy for her Bagels & Coffee Shop from Choice Insurance Company. In their dealings, both parties must

Accepted Answer

A)  be open and honest . 
B)  attempt to deny or reduce any claim. 
C)  prevent the other from asserting certain defenses. 
D)  have an insurable interest. 
A)  be open and honest . 
B)  attempt to deny or reduce any claim. 
C)  prevent the other from asserting certain defenses. 
D)  have an insurable interest.

Question 17

Insurance is an arrangement for transferring and allocating risk.

Accepted Answer

A) True 
 B)False

Question 18

When a broker deals with an applicant for insurance, the broker is the applicant's agent.

Accepted Answer

A) True 
 B)False

Question 19

The insurer can cancel a policy only under certain circumstances.

Accepted Answer

A) True 
 B)False

Question 20

A state statute usually requires that the insurer give advance written notice of the cancellation of a policy to the insured.

Accepted Answer

A) True 
 B)False

Exam 35: Insurance

Dyan and Ed are partners who own and operate Footlong's, a chain of hot-dog stands. Their partnership obtains insurance on their lives. This is

Gil obtains from Health Insurance Company a policy that provides that Gil has thirty days after a premium's due date to pay it before the policy will be canceled. This is

Misstatements in an insurance application can void a policy.

Group insurance provides individual coverage obtainable by persons who are members of certain groups.

In some instances, the insurance applicant is not protected until a formal written policy is issued.

Jason wants to insure himself against injuries and damage resulting from the operation of his taxi that he owns. Jason should obtain

Rick obtains an insurance policy from Stable Insurance Inc. The policy provides that on Rick's death Stable will pay $500,000 to Taylor, the beneficiary. This is

Actions that are against public policy can give the insurance company a defense against the payment of a claim.

Cutting Edge Corporation makes and sells knives, scissors, garden shears, and other cutting devices. To cover injuries to consumers if the products prove defective, Cutting Edge should obtain

A filled-in application for insurance is usually attached to the policy and made of the insurance contract.

Multi-Enterprise Corporation offers its employees, as an employment benefit, individual medical insurance coverage. This is

An insurance contract is called a premium .

Roma obtains a fire insurance policy on her house with Safe-wise Insurance Company. This policy is an arrangement best described as

Courts interpret the words used in an insurance contract as if most people have the special training necessary to understand the intricate terminology.

Insurance policies differ in relation to the persons and interests that they protect.

Anne obtains a liability insurance policy for her Bagels & Coffee Shop from Choice Insurance Company. In their dealings, both parties must

Insurance is an arrangement for transferring and allocating risk.

When a broker deals with an applicant for insurance, the broker is the applicant's agent.

The insurer can cancel a policy only under certain circumstances.

A state statute usually requires that the insurer give advance written notice of the cancellation of a policy to the insured.

Introduction to the Law

Ethics in Business

The Courts and Our Legal System

Constitutional Law

Business Torts

Intellectual Property

Business Crimes

Introduction to Contracts

Offer and Acceptance

Consideration

Capacity

The Legality of Agreements

Voluntary Consent

Written Contracts

Third Party Rights

Termination and Remedies

Introduction to Sales and Lease Contracts

Title and Risk of Loss

Performance and Breach

Warranties and Product Liability

Consumer Protection

The Essentials of Negotiability

Negotiable Instruments: Transfer and Liability

Banking in the Digital Age

Agency Relationships

Employment, Immigration, and Labor Law

Employment Discrimination

Types of Business Organizations

Formation and Ownership of a Corporation

Management of a Corporation

Combining and Dissolving a Corporation

Credit and Security

Mortgages

Bankruptcy

Personal Property

Bailments

Real Property

Landlord and Tenant Law

Wills and Trusts

Administrative Law

Antitrust Law

International and Space Law

Filters