Exam 50: Insurance

The words used in an insurance contract are given their ordinary meanings in light of the nature of the coverage involved.

The existence of an insurable interest is a primary concern when determining liability under an insurance policy.

Phil is an insurance broker. This means that Phil is

The person who receives the proceeds under an insurance policy is called a beneficiary.

Portia is the beneficiary of a life insurance policy on Quentin's life obtained from Renewal Insurance Company through Stan, an insurance broker. The insured of this policy is

An absolute defense against payment exists if the insurer can show that the insured lacked an insurable interest.

Don obtains from Equity Insurance Company a policy that provides that if the parties cannot agree on the amount of a loss covered by the policy, an estimate of the value by an impartial third party can be demanded. This is

An incontestability clause prohibits an insurer from contesting statements made in an insurance application until a specified time has elapsed.

Greg obtains from Hearthstone Insurance Company a policy that provides that Greg has thirty days after a premium's due date to pay it before the policy will be canceled. This is

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

Orin is a doctor with Physicians Health Clinic, which obtains insurance from Quotient Insurance, Inc., on Orin's life. Orin dies. The proceeds of the policy belong to

Country Club, Inc. applies for, and obtains, casualty insurance coverage from Business Insurance Company. The effective date of the policy is the date

Myles obtains a property insurance policy from Nova Insurance Company for Myles's restored 1957 Chevy. Nova can cancel the policy

Kailyn obtains an insurance policy that protects her against liability for property damage resulting from the operation of her vehicle. This is

For an insurance contract to be binding, consideration in the form of a premium must be given.

Comprehensive general liability insurance can encompass as many risks as the insurer is willing to cover.

If s broker fails to procure a policy, the applicant normally is not insured.

A broker is an agent of an insurance company.

Rafe obtains a fire insurance policy on his vacation cabin near Smoky Mountain from Torchlight Insurance Company. The cabin is lost in a fire, but the parties dispute the amount of Torchlight's liability under an ambiguous clause in the policy. A court would most likely

When there is an ambiguity in an insurance policy, the provision generally is interpreted against the insurance company.