Exam 47: Insurance

Architecture P.A. obtains an insurance policy that protects its professionals against negligence claims by their clients. This is

Liability coverage under a homeowner's insurance policy normally does not apply to liability that arises from business or professional activities.

Rizzo obtains a fire insurance policy on his apartment building with Safe-wise Insurance Company. This policy is an arrangement for

Riverside Storage obtains a fire insurance policy from Security Insurance Inc., on a $400,000 warehouse. The policy includes an 80-percent coinsurance clause. Riverside insures the property for $320,000. In a fire, the warehouse suffers $200,000 in damage. The insured can recover

Salvage Yard obtains an insurance policy to protect against losses incurred by the firm as a result of being held liable for personal injuries or property damage sustained by others. This is

Coverage can be procured under a comprehensive general liability policy to include payment for expenses to recall and replace a product that has proved to be defective.

Gus obtains an insurance policy from Health Insurance Inc. The policy includes an incontestability clause. Under this clause, after the policy has been in force for two or three years

An insured's interest in a life insurance policy is not generally an asset that can be subject to the rights of a judgment creditor.

Before a loss has occurred, a fire insurance policy is assignable without the consent of the insurer, because the policy is not regarded as a personal contract between the insurer and the insured.

Without an insurable interest, there can be no enforceable insurance contract.

Commerce Insurance Inc. has a valid reason to cancel a policy issued to DIY Auto Parts LLC. In most states, the insurer could cancel the policy on

Because types of losses that are expected and types that are foreseeable vary with the nature of an activity, insurance is classified according to the nature of the risk involved.