Exam 9: Fundamental Legal Principles

Fundamental purposes of the principle of indemnity include which of the following? I.To reduce physical hazards. II.To prevent the insured from profiting from insurance.

Some states have a law that requires payment of the face amount of insurance to the insured if a total loss to real property occurs from a peril specified in the law.These laws are called

All of the following statements about the rules governing agency relationships are true EXCEPT

Which distinct legal characteristic of insurance contracts states that only the insurer's promise to perform is legally enforceable?

The general rule that ambiguity in insurance contracts is construed against the insurer is reinforced by an important legal principle.This principle states the insured is entitled to coverage under a policy that he or she would assume the policy would provide,and exclusions must be conspicuous,plain,and clear.This principle is known as

The principle of utmost good faith is supported by all of the following legal doctrines EXCEPT

When must an insurable interest legally exist in property insurance for an insured to receive payment for a loss from the insurer?

Which of the following statements about an insurable interest in life insurance is (are)true? I.It is required of any person named as beneficiary. II.It may result from a pecuniary (financial)interest.