Question 1

Most employers pay for disability insurance for their employees in totality.

Accepted Answer

A) True 
 B)False  False

Question 2

A directors' and officers' liability insurance helps an organization sue its directors and officers in case of personal negligence.

Accepted Answer

A) True 
 B)False  False

Question 3

Who is an underwriter?

Accepted Answer

A) a lawyer who represents the insurance company 
B) an agent who works for only one insurance company 
C) a broker who works on behalf on many insurance companies 
D) an insurance company that provides coverage to the insured 
A) a lawyer who represents the insurance company 
B) an agent who works for only one insurance company 
C) a broker who works on behalf on many insurance companies 
D) an insurance company that provides coverage to the insured D

Question 4

The coverage of a standard fire insurance policy cannot be enlarged by adding riders or endorsements to the policy.

Accepted Answer

A) True 
 B)False

Question 5

Matheson's car was damaged when a hurricane hit the town he lived in.But since his car was insured, it was restored.Matheson himself was severely injured in the disaster, rendering him a paraplegic.Matheson was forced to hire a chauffer to drive him around.
-If Matheson wishes to be covered for the possibility of the chauffer getting into an accident, he would require a(n)________.

Accepted Answer

A) omnibus clause in his automobile insurance 
B) collision clause in his automobile insurance 
C) deductibility clause in his automobile insurance 
D) double indemnity clause in his automobile insurance 
A) omnibus clause in his automobile insurance 
B) collision clause in his automobile insurance 
C) deductibility clause in his automobile insurance 
D) double indemnity clause in his automobile insurance

Question 6

For a life insurance, insurable interest is necessary at the time of loss.

Accepted Answer

A) True 
 B)False

Question 7

Able Adams has a number of rare paintings at home that he inherited from his paternal family, many of whom were patrons and collectors of the arts.Able knows that the value of these paintings makes them likely targets of theft and he needs to insure these items specifically by using a ________.

Accepted Answer

A) homeowner's policy 
B) standard fire insurance 
C) personal articles floater 
D) personal liability coverage 
A) homeowner's policy 
B) standard fire insurance 
C) personal articles floater 
D) personal liability coverage

Question 8

Matheson's car was damaged when a hurricane hit the town he lived in.But since his car was insured, it was restored.Matheson himself was severely injured in the disaster, rendering him a paraplegic.Matheson was forced to hire a chauffer to drive him around.
-What kind of insurance helped restore Matheson's car after it was damaged by the hurricane?

Accepted Answer

A) collision insurance 
B) comprehensive insurance 
C) automobile liability insurance 
D) uninsured motorist coverage 
A) collision insurance 
B) comprehensive insurance 
C) automobile liability insurance 
D) uninsured motorist coverage

Question 9

The owner of the policy in a life insurance without exception is the ________.

Accepted Answer

A) insurance company that issues the policy 
B) person who pays the premiums 
C) next of kin of the insured person 
D) person who receives the insurance proceeds 
A) insurance company that issues the policy 
B) person who pays the premiums 
C) next of kin of the insured person 
D) person who receives the insurance proceeds

Question 10

A homeowner's policy does not cover theft that takes place at the insured's workplace even if the item is insured.

Accepted Answer

A) True 
 B)False

Question 11

Automobile liability insurance covers damages that the insured causes to third parties.

Accepted Answer

A) True 
 B)False

Question 12

A no-fault insurance assures the insured party that coverage is available if they are injured in an automobile accident.

Accepted Answer

A) True 
 B)False

Question 13

A worker's compensation insurance allows an employee to sue the employer along with claiming the insurance coverage.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following types of insurances provides replacement cost insurance?

Accepted Answer

A) health insurance 
B) standard fire insurance 
C) disability insurance 
D) life insurance 
A) health insurance 
B) standard fire insurance 
C) disability insurance 
D) life insurance

Question 15

What is the difference between an insurance broker and an insurance agent?

Accepted Answer

A) An insurance agent works exclusively for one company, while an insurance broker works for a number of insurance companies. 
B) An agent requires a commission payment after the deal is made, while a broker requires the service charge to be paid before the deal is made. 
C) An agent represents the insured, while a broker represents the company. 
D) An agent is authorized to sell insurance directly, while a broker can only mediate an insurance contract. 
A) An insurance agent works exclusively for one company, while an insurance broker works for a number of insurance companies. 
B) An agent requires a commission payment after the deal is made, while a broker requires the service charge to be paid before the deal is made. 
C) An agent represents the insured, while a broker represents the company. 
D) An agent is authorized to sell insurance directly, while a broker can only mediate an insurance contract.

Question 16

A drive-other coverage protects the insured for damages to a rental car caused by the insured.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements is true of a personal articles floater?

Accepted Answer

A) The insured can insure specific body parts using this policy. 
B) The coverage includes insurance of intangible properties. 
C) The coverage does not include loss or damage cause during travel. 
D) The insurance company will charge an increased premium based on the articles insured. 
A) The insured can insure specific body parts using this policy. 
B) The coverage includes insurance of intangible properties. 
C) The coverage does not include loss or damage cause during travel. 
D) The insurance company will charge an increased premium based on the articles insured.

Question 18

A buy-sell agreement made using proceeds from a key-life insurance is not considered valid.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements is true with regard to umbrella insurance?

Accepted Answer

A) It is cannot be used for liability coverage. 
B) It does not require the insured to have already purchased insurance policies. 
C) It cannot be used with other insurance policies. 
D) It is only paid if the limits on other insurance policies have been exceeded. 
A) It is cannot be used for liability coverage. 
B) It does not require the insured to have already purchased insurance policies. 
C) It cannot be used with other insurance policies. 
D) It is only paid if the limits on other insurance policies have been exceeded.

Question 20

An owner of real property or a mortgagee pays only one premium for title insurance, usually at closing.

Accepted Answer

A) True 
 B)False

Exam 50: Insurance

Most employers pay for disability insurance for their employees in totality.

A directors' and officers' liability insurance helps an organization sue its directors and officers in case of personal negligence.

Who is an underwriter?

The coverage of a standard fire insurance policy cannot be enlarged by adding riders or endorsements to the policy.

For a life insurance, insurable interest is necessary at the time of loss.

Able Adams has a number of rare paintings at home that he inherited from his paternal family, many of whom were patrons and collectors of the arts.Able knows that the value of these paintings makes them likely targets of theft and he needs to insure these items specifically by using a ________.

The owner of the policy in a life insurance without exception is the ________.

A homeowner's policy does not cover theft that takes place at the insured's workplace even if the item is insured.

Automobile liability insurance covers damages that the insured causes to third parties.

A no-fault insurance assures the insured party that coverage is available if they are injured in an automobile accident.

A worker's compensation insurance allows an employee to sue the employer along with claiming the insurance coverage.

Which of the following types of insurances provides replacement cost insurance?

What is the difference between an insurance broker and an insurance agent?

A drive-other coverage protects the insured for damages to a rental car caused by the insured.

Which of the following statements is true of a personal articles floater?

A buy-sell agreement made using proceeds from a key-life insurance is not considered valid.

Which of the following statements is true with regard to umbrella insurance?

An owner of real property or a mortgagee pays only one premium for title insurance, usually at closing.

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