Deck 51: Insurance Law

Question 1

The beneficiary is another name for the insured in an insurance contract.

Answer 1

False

Question 2

The insured and insurer both have obligations under an insurance contract,if either fails to meet their obligation,the other can usually sue for breach of contract.

Answer 2

True

Question 3

Federal law is the primary law addressing when an insurance company can cancel a policy of insurance.

Answer 3

False

Question 4

If an insured makes a claim for property damage and the insurer offers a payout lower than what the insured believes the property was worth,the insured can demand an appraisal under the contract's antilapse clause.

Question 5

________ suggests people who are insulated from risk sometimes behave differently

A)Coverage protection
B)Strict liability
C)Moral hazard
D)Coverage insulation
E)Negligence

Question 6

In insurance law,the insured party is the party who makes a payment to an insurance company,called a premium,in return for insurance coverage.

Question 7

Car insurance may be canceled if the insured loses his or her license because of a driving violation.

Question 8

A commercial general liability policy provides protection against intentional wrongful acts committed by an insured.

Question 9

The government spends large amounts on social insurance.

Question 10

Which of the following was the result in Royal Capital Development LLC v.Maryland Casualty Company,the case in the text involving whether on a policy of insurance covering "direct physical loss of or damage to" a building that allows the insurer the option of paying either "the cost of repairing the building" or "the loss of value," the insurer must also compensate the insured for the diminution in value of the building if the insured elects to repair the building?

A)That the insurer could choose between repairing the building or paying for its loss of value and that once proper repairs were made,the insurer had no obligation to cover any diminution in value.
B)That when a policy promised to pay the insured's loss,the insured had a claim for diminution in value even if repairs were made.
C)That a claim for diminution in value could be made only if the insurer delayed in making repairs such that the insured had an equitable claim for diminution in value.
D)That unless the insured notified the insurer prior to the beginning of repairs that a claim for diminution in value would be made,the issue was waived because the insurer was entitled to take such a claim into consideration in making its decisions.
E)That when a policy promised to pay the insured's loss,the insured has no claim for diminution in value if repairs are made.

Question 11

If an insurance company wants to cancel a policy,it must provide the insured with a grace period,but it does not have to provide advanced notice.

Question 12

Premiums for whole-life insurance are generally smaller than those for term-life insurance.

Question 13

If an insured fails to cooperate with the insurer when making a claim,the insurer is not required to pay on the claim.

Question 14

Insurance is defined as a contract in which the insured party makes payments to the insurer in exchange for the insurer's promise to make payment or transfer goods to another party in the event of injury or destruction to the insured party's property or life.

Question 15

When does a person have an insurable interest in property?

A)When the person has sentimental value,regardless of the property's actual value.
B)When the person can prove he or she has full legal ownership of the property.
C)When the person has paid fair market value for the property.
D)When the person has paid off any loans attached to the property.
E)When the person derives a financial benefit from its continued use.

Question 16

The insured party transfers his or her risk of loss of property or life to the insurance company through the insurance agreement.

Question 17

If a person has an insurable interest in property,which of the following is required for the person to collect the beneficiary payment when there is a loss?

A)The person must make a claim to the insurer within 14 days of the loss.
B)The person must make a claim to the insurer within 30 days of the loss.
C)The person must have had an interest in the property at the time of the loss.
D)The person must have had an interest in the property at anytime during coverage.
E)The person must have had an interest in the property before the loss.

Question 18

Arbitration clauses are illegal in policies of insurance,as a matter of federal law.

Question 19

A person who is unable to work due to disability is protected by life insurance.

Question 20

How do insurance companies lessen the impact of moral hazard?

A)Terminate the policy.
B)Decrease the insured's amount of coverage.
C)Limit the insured's coverage to a pre-approval process.
D)Require a co-payment or a deductible.
E)Require a doctor's referral for all major examinations.

Question 21

A workers' compensation insurance policy is an example of which of the following types of insurance?

A)Injury
B)Business
C)Casualty
D)Loss
E)Economi c

Question 22

If the purpose of an insurance policy is to protect property from loss or damage,the insurance is ________ insurance.

A)Loss
B)Economi c
C)?Business
D)Material
E)Property

Question 23

The transfer and distribution of risk done by an insurer is known as ________.

A)Insured protection
B)Risk management
C)Insurance management
D)Casualty management
E)Spread protection

Question 24

A[n] _ clause states that after an insurance policy has existed for a specified period of time,the insurance company cannot contest any statements made in the insurance application.

A)Antilapse
B)Assurance
C)Incontestability
D)Waiver
E)Approval

Question 25

A policy of title insurance is an example of which of the following types of insurance?

A)Profit loss
B)Business loss
C)Economic
D)Commercial
E)Economy

Question 26

Which of the following was the result on appeal in Equity Fire & Casualty Company v.Laurence Traver,the case in the text in which an insured on a policy of automobile insurance mailed a premium to the insurer,but it did not reach the insurer prior to the expiration date of the policy;and the insurer refused to provide coverage for a motor vehicle accident that occurred after the expiration date of the policy and before the premium was received?

A)The court ruled that under the unique facts of the case,there was acceptance of the renewal offer preventing a lapse of the policy.
B)The court ruled that coverage was not required under the policy because the insured did not meet his obligation of seeing that the premium amount was received by the insurer in a timely manner.
C)The court ruled that coverage was required under the policy because of the mailbox rule.
D)The court ruled that coverage was required because the insured had a grace period of 7 days in order for the payment to arrive.
E)The court ruled that coverage was not required under the policy because of the mailbox rule.

Question 27

Which term refers to the potential for loss in an insurance agreement?

A)Distribution
B)Risk
C)Outlay
D)Loss
E)Premium

Question 28

Which of the following clauses states that the insured has a grace period in which to make an overdue payment during which time the insurance is effective?

A)Incontestability clause
B)Waiver clause
C)Assurance clause
D)Approval clause
E)Antilapse clause

Question 29

An individual would purchase ________ insurance to protect his or her business from tort liability to third parties.

A)Liability
B)Litigation
C)Tort
D)Group
E)Property

Question 30

A person must be subject to economic loss if there is damage or harm to the person or property in order to have a[n] ________ in property or life.

A)Acknowledged loss
B)Protected loss
C)Understandable failure
D)Insurable interest
E)True injury

Question 31

A[n] is an agreement between an applicant and an insurance company that gives temporary insurance until the company decides to accept or reject the insurance application.

A)Binder
B)Approval
C)Notarization
D)Anticipatory agreement
E)Application

Question 32

If insurance covers some type of business risk,the insurance is called ________ insurance.

A)Commercial
B)Economic
C)Business loss
D)Economy
E)Profit loss

Question 33

Which of the following is true regarding whether the insureds in the "Case Opener" were entitled to insurance coverage for imported toxic Chinese drywall used in their home?

A)The court ruled that the insureds were entitled to coverage for personal injuries because of their insurance company's warranties,but not coverage for property damage.
B)The court ruled that the insureds were entitled to property damage coverage because of their insurance company's warranties,but not coverage for personal injuries.
C)The court ruled that the insureds were entitled to coverage for both property damage and personal injury based on their insurance company's warranties.
D)The court ruled that the insureds were not entitled to coverage.
E)The court ruled that the insureds were entitled to full coverage only if they could establish that the insurer knew of the drywall problems when it issued the policy.

Question 34

The parties express their agreement for insurance in a document called a[n] ________.

A)Policy
B)Catalog
C)Notification
D)Brochure
E)Application

Question 35

An insurance policy that covers an individual's life or health is ________ insurance.

A)Unitary
B)Personal
C)Protectio n
D)?Individua l
E)?Family

Question 36

A policy of fidelity insurance is an example of which of the following types of insurance?

A)Profit loss
B)Business loss
C)Economy
D)Commercial
E)Economic

Question 37

________ is a term used to define the payment made by an insured party in exchange for a later payment by an insurer in the event of damage or injury to insured property or person.

A)Assessment
B)Bill
C)Requirement
D)Premium
E)Tag

Question 38

The ________ is the term used for the date an insurance policy begins coverage.

A)Application date
B)Acceptance date
C)Effective date
D)Insured date
E)Covered date

Question 39

An insurer may also be called a[n] ________.

A)Overwriter
B)Guarantor
C)Underseer
D)Underwriter
E)Overseer

Question 40

A[n] ________ is a term identifying the person who receives insurance proceeds in the event of injury or damage.

A)Identified
B)Beneficiary
C)Obtainer
D)Insured
E)Receiver

Question 41

Daria's property is damaged in a fire.She claims the property damage amounted to $10,000,and the insurer claims it only amounted to $5,000.Which of the following is true in this situation?

A)Daria has no alternative because she must accept the insurer's valuation.
B)Daria should file for a field evaluation.
C)The insurer is required to accept Daria's valuation unless the insurer can establish that the insured failed to act in good faith.
D)Daria should demand an appraisal under her policy's appraisal clause.
E)Daria should call the state inspector who investigates and makes rulings in such cases.

Question 42

Regarding Nari's reliance on an incontestability clause if typical state laws are in effect,which of the following is most likely true?

A)Nari is correct because the incontestability clause acts to bar an insurer from denying coverage in cases in which any driver with permission is driving an insured's vehicle.
B)Nari is correct,and the insurance has been in effect over one year,a sufficient length of time for the incontestability clause to bar any defense by the insurer based on her failure to mention Joon on the application.
C)Nari is incorrect because the incontestability clause operates to deny her the right to dispute inaccuracies on the application,not as a bar against the insurer.
D)Nari is incorrect because the incontestability clause does not generally apply until coverage has been in effect for at least two years.
E)Nari is incorrect because incontestability clauses were barred by federal law a number of years ago.

Question 43

Conan,a bit of a hypochondriac,decides that he should have MRIs covering his whole body and insists that his doctor order them.Conan tells his doctor that he is not concerned about cost because he has great insurance.Which of the following is the appropriate and recognized term for the problem associated with Conan's behavior as far as an insurer is concerned?

A)Hypochondria psychosis
B)Moral hazard
C)Medical excessiveness
D)Hypochondria neurosis
E)Unfair persuasiveness

Question 44

Regarding the reduction of the impact of moral hazard by insurers,which of the following is true?

A)Insurance companies lessen the impact of moral hazard by requiring that individuals with insurance make co-payments or pay a deductible.
B)The only avenue for insurers seeking to reduce moral hazard is through the use of deductibles.
C)It is not possible for insurers to reduce the risk of moral hazard,and this is seen as a risk of doing business.
D)The only avenue for insurers seeking to reduce moral hazard is through refusing to insure those who have previously made multiple insurance claims.
E)Insurers refuse to pay claims believed to result from the effects of moral hazard.

Question 45

Which of the following types of insurance protects the producer or manufacturer of a good from loss incurred by people who are injured using the good?

A)Strict liability
B)Consumer protection
C)Product liability
D)Business operations
E)Contractors' liability

Question 46

[Information Issues] Nari bought a sporty,yellow convertible.She had a teenage son at home,Joon,but she did not plan to let him drive the new car because he had driven her last car into the lake.Embarrassed,Nari decided to change insurers.She went to Big Insurance Company to apply.She got an application from Mark,an agent.Nari was a little nervous because the application asked about other drivers in the home.It also asked if there were any teenagers in the home.Nari decided to answer "no" on both counts because she had no plans to let Joon drive.Nari got full coverage on the car,and the policy was issued shortly after she completed the application.One year later,she renewed the policy without revising any of the information she provided.One month after she renewed the policy,Nari really needed some gas in the car for the next day,but she was unable to go to the gas station.Under the belief that he had sufficiently matured,Nari sent Joon to get gas.Unfortunately,a driver who had no insurance hit the car and totaled it.Luckily,Joon was okay. )Nari immediately called her agent,Mark.When Mark reviewed the police report,however,he told Nari that there would be no coverage on the car because Joon was driving.Nari said that was completely unfair and that she would take her case to court to be decided by a jury.Nari told Mark that Big Insurance Co.issued the policy and that she was relying on the incontestability clause.Mark told Nari that she was wrong and that based on how disputes were handled under the policy,she would not even see a jury.
Regarding Mark's statement that Nari would never see a jury,which of the following is true?

A)Mark is correct based on provisions in most policies providing that the insurance company has the final word regarding coverage.
B)Mark is likely referencing a provision requiring that any dispute be settled by the Insurance Adjustors of America contained in some policies.
C)Mark is incorrect,and insurers may not require as a condition of a policy that an insured give up the right to a trial by jury.
D)Mark is likely referencing a provision requiring arbitration contained in some policies.
E)Mark is correct based on provisions in most policies denying the insured the right to contest policy provisions.

Question 47

Which of the following types of insurance protects members of specific professions from liability associated with their professional acts?

A)Business liability
B)Trained liability
C)Licensed
D)Consumer
E)Professional liability

Question 48

Which of the following is false in regard to an insurer's right to cancel a policy of insurance?

A)An insurer who rightfully cancels a policy is not required to a refund of premium payments covering future time periods.
B)Typically a grace period is required before a policy may be cancelled.
C)State statutes usually govern the circumstances under which an insurer may cancel a policy.
D)Car insurance may be canceled if the insured loses her license because of a driving violation.
E)If an insured fails to pay premiums after a certain period,the insurance company may cancel.

Question 49

is a term referencing the concept that a sufficient interest must exist on the part of an insured in order to take out a policy of insurance.

A)Insurable interest
B)Pecuniary interest
C)Financial effect
D)Financial concern
E)Profit impact

Question 50

The ________ type of life insurance provides protection for the entire life of the insured and has a cash-surrender value.

A)Useful-life
B)Entire-life
C)Surrender-life
D)Term-life
E)Whole-life

Question 51

Which statement is false regarding marine insurance in Scotland?

A)Marine insurance policies cover most marine activities including liability to third parties in the event of difficulties while at sea.
B)Marine insurance policies tend to be exacting.
C)Before an insurer will sign a policy,the value of the item insured must be specified in the contract.
D)Scotland has a Marine Insurance Act in its mercantile law that addresses insurance contracts.
E)Marine insurance policies are among the most simple and easy to understand insurance policies.

Question 52

________ insurance protects a garage owner from liability to persons who are injured by the operation of the garage.

A)Garage liability
B)Peril
C)Employee liability
D)Vehicle liability
E)Transportation liability

Question 53

Regarding whether ABC Insurance will be required to provide coverage on the jeep,which of the following is true?

A)ABC will likely be required to provide coverage on the jeep because any misrepresentations made were innocently made in the belief that the jeep would be returned soon.
B)ABC will not have to provide coverage because Ace Photo did not have an insurable interest in the jeep.
C)ABC will likely not be required to provide coverage on the jeep because Ace Photo made material misrepresentations in the renewal of the policy that would have prevented its renewal.
D)ABC will not likely be required to provide coverage because Ringo's new employer was liable under workers' compensation.
E)ABC will have to provide coverage unless Ringo had already obtained his own insurance on the vehicle because one vehicle may only be insured under one policy.

Question 54

[Insurance Incident] Ace Photo,a company specializing in wild animal photography,took out a life insurance policy through ABC Insurance on its president,Ringo,and an insurance policy on the company-owned jeep that he drove.Some time later,Ringo got a better offer from Flash Company,another company specializing in the photography of wild animals,and went to work for them.He parted on good terms with Ace Photo,and took the jeep under the mistaken idea that it was part of his severance benefits.Neither of the insurance policies was cancelled by Ace Photo.Unfortunately,while photographing a lion for Flash Company,Ringo was attacked and eaten.His jeep was then stolen by a bystander.Ace Photo had been in the process of contacting Ringo in an attempt to obtain possession of the jeep but had not reacquired it at the time of his death.Ace Photo had renewed the policy on the jeep,reaffirming to the insurer that its purpose was for use by Ace Photo employees because Ace Photo planned to have possession of the vehicle shortly.Ace Photo filed a claim to collect on the life insurance policy and also on the vehicle policy.ABC Insurance denied both claims.
Which statement is true regarding the contention of ABC Insurance that it is not required to pay to Ace Photo the amount for which Ringo's life was insured?

A)ABC Insurance Company is incorrect because Ace Photo had an economic interest in Ringo based on his possession of the jeep that Ace Photo still owned.
B)ABC Insurance Company is incorrect only if Ace Photo owed Ringo retirement or some other sort of benefit.
C)ABC Insurance Company is correct because Ace Photo no longer had an economic interest in Ringo's life.
D)ABC Insurance Company is incorrect because Ace Photo held an economic interest in Ringo's life at the time the insurance was purchased.
E)ABC Insurance Company is correct only if Ringo's new employer had purchased life insurance on his life.

Question 55

Which of the following,if any,will Big Insurance Co.most likely be required to prove in order to deny coverage based on the discrepancy between the application and Joon's driving?

A)Only that the company's knowledge of the misrepresentation would have resulted in rejection of Nari's application.
B)Only that Nari's misrepresentation was material.
C)That Nari's misrepresentation was material;that knowledge of the misrepresentation would have resulted in rejection of her application;and that the insurer's loss would be in an amount over $10,000.
D)Both that Nari's misrepresentation was material and that knowledge of the misrepresentation would have resulted in the refusal to provide insurance.
E)There is no proof that Big Insurance Co.can provide to avoid coverage because,as a matter of law,it is clear that coverage must be provided based on Joon's permissive use of the vehicle.

Question 56

Which of the following is false regarding insurance and the international sale of goods?

A)Today,manufacturers are likely to have an insurance company in every country to which they ship goods.
B)A manufacturers in Germany,for example,could seek insurance through a German insurance company regardless of where its products are shipped.
C)Manufacturers typically have insurance only in their home country because,under international law,the home country's law would be applied in the event of disputes.
D)Product liability awards may vary in amount from country to country.
E)Complications may arise from having insurance companies in several different countries.

Question 57

Which of the following types of insurance should a business manager purchase to obtain protection against a broad range of risks?

A)A business approved policy
B)A business tort policy
C)An economic protection policy
D)A litigation commercial policy
E)A commercial general liability policy

Question 58

The type of life insurance provides coverage for a specified term.

A)Surrender-life
B)Entire-life
C)Whole-life
D)Term-life
E)Useful-life

Question 59

insurance protects contractors against liability for injuries that might occur while completing a job,excluding injuries to employees.

A)Harm liability
B)Contractors' liability
C)Professional liability
D)Compensation
E)Building liability

Question 60

________ insurance provides a specific sum of money upon the death of the insured.

A)Casualty
B)Life
C)Risk
D)Consumer
E)Occurrence

Question 61

Which of the following prevents an insurer from denying payment because it decides to investigate the application for fraud?

A)Antilapse clause
B)Investigation clause
C)Appraisal clause
D)Arbitration clause
E)Incontestability clause

Question 62

Which of the following is not a type of property insurance?

A)Fire
B)Natural forces
C)Livestock
D)Casualty
E)Water

Question 63

Regarding Beatriz's assertion that vehicle insurance policies do not generally provide coverage for legal representation,which of the following is true?

A)Beatriz is incorrect.
B)Beatriz is correct only in situations in which a student with a student policy is involved in an accident.
C)Beatriz is correct only in situations in which an insured has had at least two previous accidents.
D)Beatriz is correct because insureds are expected to shoulder some of the burden of accidents.
E)Beatriz is correct only in situations in which a student is carried on a parent's insurance policy.

Question 64

In the case text,Mellin v.Northern Security Insurance Company,the Mellins filed a claim under their homeowner's insurance policy because the odor of cat urine emanated from a downstairs neighbor's condominium to an open plumbing chase servicing their kitchen.The Mellins sold their unit for a price less than that of a comparable condominium in the area,which was unaffected by the odor.The Mellins sued their insurance company because it denied the claim,stating it was not a "physical loss" and therefore,the claim was not covered under their policy.Which of the following was the result on this issue?

A)The Mellins were allowed to proceed with their claim because the court held physical loss can include changes perceived by the sense of smell,even in the absence of physical damage.
B)The Mellins' claim was dismissed because they sold the property and did not receive a proper appraisal demonstrating their damages prior to bringing the lawsuit.
C)The Mellins' were allowed to proceed with their claim because the insurance company failed to exclude odors in its policy.
D)The Mellins' claim was dismissed because an odor was not considered to be a "physical loss" as defined under the insurance policy.
E)The Mellins' claim was dismissed because the suit should have been brought against the downstairs neighbor,not against their insurance company.

Question 65

When can an insurer cancel an insurance policy?

A)When he or she notifies the insurer and provides a 30-day notice of his or her intent to cancel the policy.
B)At any time
C)When he or she has paid the required amount of premiums under the policy
D)Once he or she is released from the insured
E)When he or she notifies the insurer and provides a 45-day notice of his or her intent to cancel the policy.

Question 66

If the insured misrepresented his or her age on the insurance application,what is the result when the insured dies and his or her beneficiary seeks payment?

A)The beneficiary will not receive payment because the policy is void.
B)The beneficiary will receive an adjusted payment to reflect the insurer's damages.
C)The beneficiary will not receive payment because the insured breached the contract.
D)The beneficiary will receive the full amount of payment.
E)The beneficiary will receive an adjusted payment to reflect premiums for the correct age

Question 67

Under which of the following circumstances would an insurer pay the beneficiary in the event of the insured's death?

A)War
B)Execution
C)Accidental
D)Suicide
E)Life insurance policies cover all causes of death.

Question 68

What type of insurance is purchased by neither the insured party nor the insurer?

A)Individual
B)Casualty
C)Group
D)Personal
E)Commercial

Question 69

[Imari's Imprudence] Imari was texting while driving and slammed into the back of Cody's car.Shortly thereafter she received notice of a lawsuit setting forth Cody's claims for personal injury and property damage.Imari was very busy studying for college and did not feel like dealing with a pesky lawsuit.Several months later,Beatriz,a new agent with the insurer,called Imari and told Imari that she had just heard something about a lawsuit from the Cody's lawyer.Beatriz told Imari that although investigation would be difficult after so many months,she would like to talk with Imari because the trial was scheduled for next week.Imari told Beatriz that she had no time to meet at the moment and that just before court,she would meet with the lawyer the company appointed to represent her.Beatriz told Imari that the insurance company was going to deny coverage.Beatriz also told Imari that vehicle insurance did not typically provide for legal representation and that,in any event,no lawyer would be provided.Finally,Beatriz told Imari that Imari's insurance was cancelled immediately because she was a real jerk and failed to help,that insurance would not pay for accidents that were the fault of Imari anyway,and that the insurer wanted nothing more to do with her.
Regarding Beatriz's complaint that Imari failed to help,which of the following is true?

A)Imari had a duty to cooperate with the insurer only because it appears that the accident was her fault.
B)Imari's only duty was to show up for court;otherwise she had no duty to assist the insurer.
C)Imari had a duty to cooperate with the insurer.
D)Imari had a duty to assist the insurer and to provide a share of funds to help the insurer in defending her claim.
E)Imari's only duty was to show up for a court and for any depositions for which she received a subpoena;otherwise,she had no duty to cooperate with the insurer.

Question 70

The insurer would likely attempt to deny coverage based on which of the following legal theories?

A)Breach of contract
B)Negligence
C)Recklessness
D)Illegality
E)Misrepresentation

Question 71

Which of the following best describes the insured's duty to cooperate with the insurer?

A)The insured must provide information regarding the incident that led to the claim and provide a deposition within 30 days of the claim.
B)The insured must provide information regarding the incident that led to the claim.
C)The insured must provide information regarding the incident unless he or she is being sued as a result of the incident.
D)The insured must provide information he or she finds relevant to the incident that led to the claim.
E)The insured must provide information regarding the incident but does not have to provide self-incriminating information.

Question 72

Which of the following best describes the insured's duty to disclose information to the insurer?

A)The insured must disclose all material information on the application and fully and truthfully answer any questions.
B)The insured must fully and truthfully answer any questions.
C)The insured must disclose all information on the application and answer only relevant questions to the best of his or her ability.
D)The insured must disclose all information on the application and fully and truthfully answer any questions.
E)The insured must disclose all material information on the application.

Question 73

In which of the following circumstances can an insurer void an insurance contract?

A)The insured made material misrepresentations in the insurance application and if the insurer would have known of these material representations,it would have rejected the application.
B)The insured made material misrepresentations in the insurance application,but the insurer knew these representations were likely false when it issued the policy.
C)The insured failed to disclose any fact;material or nonmaterial,on the insurance application and the insurer relied on the information contained in the application when it issued the policy.
D)The insured made material misrepresentations in the insurance application,but the insurer did not rely on these representations when it issued the policy.
E)The insured made material misrepresentations in the insurance application,regardless if the misrepresentation would have altered the insurer's decision to issue the policy.

Question 74

If the insured misrepresented his or her health on the insurance application,what is the result when the insured dies and his or her beneficiary seeks payment?

A)The beneficiary will receive the full amount of payment.
B)The beneficiary will not receive payment because the policy is void.
C)The beneficiary will receive an adjusted payment to reflect the insurer's damages.
D)The beneficiary will receive an adjusted payment to reflect premiums for the correct health.
E)The beneficiary will not receive payment because the insured breached the contract.

Question 75

Which of the following acts would not be covered under a commercial general liability policy?

A)A competitor's trademark claim
B)A competitor's copyright claim
C)A competitor's patent claim
D)An employee's intentional tortious act
E)A customer's personal injury claim

Question 76

What type of insurance policies cover attacks by hackers,software coding,and human errors?

A)Cyber and security policies
B)Security and data privacy policies
C)Data privacy and hack prevention policies
D)Hack prevention and cyber policies
E)Cyber and data privacy policies

Question 77

Regarding Beatriz's assertion that the insurer was not liable for accidents that were the fault of the insured,which of the following is true?

A)Beatriz is incorrect
B)Beatriz is only correct if Imari is still carried on a parent's insurance policy.
C)Beatriz is correct only if Imari has had at least two previous accidents.
D)Beatriz is correct because insurance on vehicles is meant to assist drivers who are involved in accidents through no fault of their own.
E)Beatriz is likely correct only because Imari is a student with a student policy.

Question 78

If the insured or insurer fails to meet an obligation under the insurance contract,what cause of action might the other party have?

A)Breach of duty
B)Breach of good faith and fair dealing
C)Breach of warranty
D)Breach of contract
E)Breach of implied warranty

Question 79

Homeowner's insurance is an example of which of the following types of insurance?

A)Property
B)Personal
C)Commercial
D)Individual
E)Casualty

Question 80

Which of the following best describes the insurer's duty to defend the insured?

A)The insurer has a duty to defend the insured for all claims.
B)The insurer has a duty to defend the insured from all claims for which the insured is liable.
C)The insurer has a duty to defend the insured for only claims for which the insured is not liable.
D)The insurer does not have a duty to defend the insured.
E)The insurer has a duty to defend the insured only if the incident was not the insured's fault.