Question 1

If an insurer denies liability for a loss, the insured has the burden of proving that there was a loss that came within the coverage of the policy.

Accepted Answer

A) True 
 B)False

Question 2

An insurer may cancel any contract of insurance by the insurer's unilateral act as long as the insurer gives advance written notice.

Accepted Answer

A) True 
 B)False

Question 3

A person who obtains life insurance generally can only name a beneficiary that has an insurable interest in the life of the insured.

Accepted Answer

A) True 
 B)False

Question 4

To collect on property insurance, an insurable interest in the property must exist at the time that the loss is suffered.

Accepted Answer

A) True 
 B)False

Question 5

The promises of the insurer are found in the insurance policy.

Accepted Answer

A) True 
 B)False

Question 6

If an automobile collision results in a permanent serious disfigurement or death, a lawsuit may be brought against the party who was at fault.

Accepted Answer

A) True 
 B)False

Question 7

It is common for institutions financing automobile dealers' new car inventories to purchase a(n) _______ insurance policies to insure against damage to the automobiles while in inventory.

Accepted Answer

A)  freight 
B)  dealer automobile 
C)  inland marine 
D)  liability 
A)  freight 
B)  dealer automobile 
C)  inland marine 
D)  liability

Question 8

The fact that a partnership is terminated after a life insurance policy is obtained by one partner on another invalidates the policy.

Accepted Answer

A) True 
 B)False

Question 9

For property insurance, an insurable interest must exist: _____.

Accepted Answer

A)  at the time the policy is purchased. 
B)  at the time of the loss. 
C)  both at the time the policy is purchased and at the time the loss is sustained. 
D)  for at least thirty (30) days before the loss is sustained. 
A)  at the time the policy is purchased. 
B)  at the time of the loss. 
C)  both at the time the policy is purchased and at the time the loss is sustained. 
D)  for at least thirty (30) days before the loss is sustained.

Question 10

An incontestability clause gives insurance companies a statutory period of time to pay the claims suffered by the insured.

Accepted Answer

A) True 
 B)False

Question 11

An application for insurance: ______.

Accepted Answer

A)  may be oral. 
B)  generally is attached to the policy and becomes a part of the insurance contract. 
C)  must be prepared by an attorney. 
D)  has no binding effect on the applicant. 
A)  may be oral. 
B)  generally is attached to the policy and becomes a part of the insurance contract. 
C)  must be prepared by an attorney. 
D)  has no binding effect on the applicant.

Question 12

Exceptions to coverage are generally strictly interpreted against the insurer.

Accepted Answer

A) True 
 B)False

Question 13

An insurer who wrongfully refuses to defend the insured is liable for: ______.

Accepted Answer

A)  breach of contract. 
B)  insurance fraud. 
C)  the tort of wrongful interference with contractual relations. 
D)  the tort of malicious prosecution. 
A)  breach of contract. 
B)  insurance fraud. 
C)  the tort of wrongful interference with contractual relations. 
D)  the tort of malicious prosecution.

Exam 35: Insurance

If an insurer denies liability for a loss, the insured has the burden of proving that there was a loss that came within the coverage of the policy.

An insurer may cancel any contract of insurance by the insurer's unilateral act as long as the insurer gives advance written notice.

A person who obtains life insurance generally can only name a beneficiary that has an insurable interest in the life of the insured.

To collect on property insurance, an insurable interest in the property must exist at the time that the loss is suffered.

The promises of the insurer are found in the insurance policy.

If an automobile collision results in a permanent serious disfigurement or death, a lawsuit may be brought against the party who was at fault.

It is common for institutions financing automobile dealers' new car inventories to purchase a(n) _______ insurance policies to insure against damage to the automobiles while in inventory.

The fact that a partnership is terminated after a life insurance policy is obtained by one partner on another invalidates the policy.

For property insurance, an insurable interest must exist: _____.

An incontestability clause gives insurance companies a statutory period of time to pay the claims suffered by the insured.

An application for insurance: ______.

Exceptions to coverage are generally strictly interpreted against the insurer.

An insurer who wrongfully refuses to defend the insured is liable for: ______.

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

Crimes

Torts

Intellectual Property Rights and the Internet

The Legal Environment of International Trade

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Capacity and Genuine Assent

Consideration

Legality and Public Policy

Writing, Electronic Forms, and Interpretation of Contracts

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Product Liability: Warranties and Torts

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Negotiable Instruments and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents Estates and Trusts

Filters