Exam 35: Insurance

Generally, the terms broker and agent are synonymous because both work directly for the insurer.

If a man names his wife as beneficiary of his life insurance and the two are thereafter divorced, the insurance policy: ______.

When an insurer wrongfully breaches its duty to defend its insured, the insurer is liable for all consequential damages resulting from the breach, up to the value of the policy.

Mike Reilly suffered the loss of his home as a result of a chimney fire that was caused by the ignition of soot in the chimney. This fire would be described as: ______.

The coverage of the personal auto policy is limited to claims arising from the "use and operation" of an automobile.

An insurance broker generally is an independent contractor who is not employed by any one insurance company.

A person must be an owner or lienholder to have an insurable interest in a property.

What is a correct statement concerning burden of proof?

Winona was a person of average intelligence, education, and experience in business. She negotiated for the purchase of insurance and paid the premium. The policy was mailed to her, but before it arrived a loss was suffered. When the policy was read, Winona could not determine whether the loss was covered because the policy was too difficult to understand. The loss is:

When the insurer is subornated to the insured's claim, the insurer may enforce that claim against the third person.

The insured must comply with a number of time limitations in making a claim.

If a provision in an insurance policy is ambiguous:

Part of every whole life insurance premium covers the cost of insurance. The remainder of the premium is devoted to the investment component of the policy, which builds up over time to its:

Any false statement in an application binds only the insured.

Insurance designed to protect an insured driver or owner from the claims of others is called:

A coinsurance clause provides that after the lapse of a specified time the insurer cannot dispute the policy on the ground of misrepresentation or fraud of the insured or similar wrongful conduct.

An insured person is generally allowed, by policy provision or statute, a grace period of what length of time in which to make the payment of a premium due on a life insurance policy?

A homeowner's policy typically does not provide for losses caused by theft, unless there is a specific rider to the policy.

No-fault automobile liability insurance bars injured parties from suing the party at fault for ordinary claims.

If an insured person tells her current husband that she is going to name him as beneficiary of her life insurance in place of her former husband and dies a year later without having taken any further steps with respect to the change of the policy beneficiary, the insurance company must pay the proceeds of the policy to: