Question 1

If no beneficiary is mentioned in a life insurance, then the proceeds of the insurance go to the insured's estate.

Accepted Answer

A) True 
 B)False

Question 2

Lienholders cannot purchase title insurance on a property on which they have a lien.

Accepted Answer

A) True 
 B)False

Question 3

An insurance contract is called a policy.

Accepted Answer

A) True 
 B)False

Question 4

What happens to the life insurance proceeds upon the death of the insured who has not named a beneficiary?

Accepted Answer

A) The proceeds are given to the state. 
B) The proceeds remain with the insurer for the full-term of the insurance. 
C) The proceeds are given to charitable organizations. 
D) The proceeds go to the insured's estate. 
A) The proceeds are given to the state. 
B) The proceeds remain with the insurer for the full-term of the insurance. 
C) The proceeds are given to charitable organizations. 
D) The proceeds go to the insured's estate.

Question 5

What are the duties of an insured and insurer?

Accepted Answer

The parties to an insurance contract are

Question 6

A professional malpractice insurance protects professionals against liability caused by personal negligence.

Accepted Answer

A) True 
 B)False

Question 7

The uninsured motorist coverage only covers when the accident is the insured's fault.

Accepted Answer

A) True 
 B)False

Question 8

An insurance contract is defined as a ________.

Accepted Answer

A) policy 
B) premium 
C) lien 
D) writ 
A) policy 
B) premium 
C) lien 
D) writ

Question 9

Which of the following insurances covers the death of the co-owner's loss to the business?

Accepted Answer

A) directors' and officers' insurance 
B) key-person life insurance 
C) business interruption insurance 
D) workers' compensation insurance 
A) directors' and officers' insurance 
B) key-person life insurance 
C) business interruption insurance 
D) workers' compensation insurance

Question 10

Which of the following is the insurer's duty to pay?

Accepted Answer

A) to pay back the insured's money on demand 
B) to pay back the premiums paid by the insured upon an endorsement of insurance 
C) to pay legitimate claims up to the insurance policy limits 
D) to pay interest for the premiums paid by insured on a monthly or yearly basis 
A) to pay back the insured's money on demand 
B) to pay back the premiums paid by the insured upon an endorsement of insurance 
C) to pay legitimate claims up to the insurance policy limits 
D) to pay interest for the premiums paid by insured on a monthly or yearly basis

Question 11

A(n)________ is a document that modifies an insurance policy and becomes part of the insurance policy.

Accepted Answer

A) endorsement 
B) easement 
C) injunction 
D) convention 
A) endorsement 
B) easement 
C) injunction 
D) convention

Question 12

Lucy Ann's boutique was burned down in a fire caused by a short circuit in the building.The fire caused the death of the boutique's co-owner and injured two of its workers.The estimated time frame for rebuilding the boutique was 5 months, but Lucy Ann was insured by a policy that reimbursed the loss of money that these 5 months of lost business would cause.
-What kind of insurance would protect Lucy from being sued by the injured employees for this damage?

Accepted Answer

A) business interruption insurance 
B) directors' and officers' insurance 
C) workers' compensation insurance 
D) key-person life insurance 
A) business interruption insurance 
B) directors' and officers' insurance 
C) workers' compensation insurance 
D) key-person life insurance

Question 13

Insurance policies can only be sold by direct agents of the insurer.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements is true of the collision insurance?

Accepted Answer

A) The coverage is in effect whether the insured's car is moving or standing still. 
B) The coverage is in effect even if another car was not involved in damaging the car belonging to the insured. 
C) The coverage also gives protection from car thefts, natural calamities, vandalism, and riots. 
D) The coverage gives insurance for damages caused by the insured on third parties. 
A) The coverage is in effect whether the insured's car is moving or standing still. 
B) The coverage is in effect even if another car was not involved in damaging the car belonging to the insured. 
C) The coverage also gives protection from car thefts, natural calamities, vandalism, and riots. 
D) The coverage gives insurance for damages caused by the insured on third parties.

Question 15

Insurance coverage is typically suspended during grace periods for payments.

Accepted Answer

A) True 
 B)False

Question 16

________ is a means for persons and businesses to protect themselves against the risk of loss.

Accepted Answer

A) Abatement 
B) Ademption 
C) Insurance 
D) Easement 
A) Abatement 
B) Ademption 
C) Insurance 
D) Easement

Question 17

A(n)________ is an automobile insurance system used by some states in which the driver's insurance company pays for any injuries or death the driver suffers in an accident irrespective of who caused the accident.

Accepted Answer

A) no-fault insurance 
B) comprehensive insurance 
C) automobile liability insurance 
D) collision insurance 
A) no-fault insurance 
B) comprehensive insurance 
C) automobile liability insurance 
D) collision insurance

Question 18

What is the importance of title insurance in real property?

Accepted Answer

Owners of real property can purchase tit

Question 19

A person who is to receive life insurance proceeds when the insured dies is known as a ________.

Accepted Answer

A) donor 
B) bailee 
C) beneficiary 
D) notary 
A) donor 
B) bailee 
C) beneficiary 
D) notary

Question 20

Under the replacement cost insurance, the insurer has the right to either pay the insured for the loss or pay to have the property restored.

Accepted Answer

A) True 
 B)False

Exam 50: Insurance

If no beneficiary is mentioned in a life insurance, then the proceeds of the insurance go to the insured's estate.

Lienholders cannot purchase title insurance on a property on which they have a lien.

An insurance contract is called a policy.

What happens to the life insurance proceeds upon the death of the insured who has not named a beneficiary?

What are the duties of an insured and insurer?

A professional malpractice insurance protects professionals against liability caused by personal negligence.

The uninsured motorist coverage only covers when the accident is the insured's fault.

An insurance contract is defined as a ________.

Which of the following insurances covers the death of the co-owner's loss to the business?

Which of the following is the insurer's duty to pay?

A(n)________ is a document that modifies an insurance policy and becomes part of the insurance policy.

Insurance policies can only be sold by direct agents of the insurer.

Which of the following statements is true of the collision insurance?

Insurance coverage is typically suspended during grace periods for payments.

________ is a means for persons and businesses to protect themselves against the risk of loss.

A(n)________ is an automobile insurance system used by some states in which the driver's insurance company pays for any injuries or death the driver suffers in an accident irrespective of who caused the accident.

What is the importance of title insurance in real property?

A person who is to receive life insurance proceeds when the insured dies is known as a ________.

Under the replacement cost insurance, the insurer has the right to either pay the insured for the loss or pay to have the property restored.

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