Exam 50: Insurance

Renter's insurance fails to cover the insured for personal liability.

Norah is a single mother who has just taught Janet, her daughter, to drive.Once Janet has a driving permit, Norah intends to let Janet do most of the driving because driving for long stretches usually gives Norah severe pain in her upper back and shoulders.Norah's car is insured in her name.In this scenario, Norah could opt for a(n)________ to protect the car from damages that could occur while Janet drives the car.

Personal injury is not covered under a standard fire insurance policy.

Premiums are based on an estimate of the number of parties within the pool who will suffer the risks insured against.

A(n)________ is a comprehensive insurance policy that includes coverage for the risks covered by a fire insurance policy as well as personal liability insurance.

The suicide clause is a clause that states that insurance proceedings will not be paid in case of a suicide at any time during the policy's validity.

Insureds who want to increase their liability coverage beyond the original coverage can purchase a(n)________.

Which of the following statements is true of insurance?

Henry works as an assembly line worker at MM Corporation.Two weeks back, he suffered multiple fractures while trying to repair a block in the machinery.The doctors have advised him to take two months of rest to recuperate from this accident.However, Henry is reassured that the ________ that he is eligible for will provide him with a monthly income till he is fit to return to work.

An insurable interest is created when the insurer has ownership of the item being insured.

Give an account of the no-fault automobile liability insurance.

An insurance policy, once made, cannot be modified.

________ is a requirement that a person who purchases insurance have a personal stake in the insured item or person.

If the insured does not have an insurable interest in the property being insured, the contract is treated as a wager.

What is the copay clause in an insurance policy?

Shippers can purchase comprehensive insurance to cover the risk of loss to their goods during shipment.

An insurance broker is an agent of the insurer.

Which of the following statements is true of a life insurance?

The ________ is a duty of the insurer to protect the insured against lawsuits or legal proceedings that involve a claim within the coverage of the insurance policy.

An automobile insurance with the omnibus clause is called an umbrella insurance policy.