Exam 50: Insurance

Gus obtains a health insurance policy for his family from Healthway Insurance Company. The policy includes an incontestability clause. Under such a clause, after a policy has been in force for two or three years

A person can insure anything in which he or she has an insurable interest.

An arbitration clause requires arbitration of disputes that arise between the insurer and the insured concerning the settlement of claims.

For property insurance, the insurable interest must exist when a policy is purchased.

Businesses can not typically protect their financial interests by obtaining insurance.

Engineering Associates, P.A., obtains an insurance policy that protects its members against negligence claims by their clients. This is

Property insurance cannot be canceled for nonpayment of premiums.

Rob applies to Standard Insurance Company for a life insurance policy. On the application, Rob understates his age. Rob obtains the policy, but for a lower premium than he would have had to pay had he disclosed his actual age. The policy includes an incontestability clause. Five years later, Rob dies. Can Standard refuse payment on the policy?

Kent applies for a life insurance policy with Long Life Insurance Company. The consideration Kent pays to Long Life is

Lighting Concepts, Inc., a trade fixture vendor and installer, wants to insure itself against injuries to employees and others on the premises during and after work hours. This business should obtain

Any loss sustained before the effective date of an insurance policy will not be covered.

Automobile liability insurance covers liability for property damage but not bodily injury.

An insurance application is part of the insurance contract.​

A person who obtains insurance from an insurance company's agent is usually protected the moment the premium is paid.

A life insurance policy is not binding until the insured dies.

An incorrect statement as to the age of the insured provides an insurance company with an excuse to avoid payment on the insured's death.

Employer's liability insurance insures an employer against liability for injuries or losses sustained by employees during the course of their employment.

Ben obtains a fire insurance policy on his house with Constant Insurance Company. Like all insurance, this policy is an arrangement for

Mena applies for a homeowners' insurance policy on her house with Neighbors Insurance Company through Obie, an agent who works for Neighbors. In this transaction, Obie is

Reno is the beneficiary of a life insurance policy on Sula's life obtained from Traditional Insurance Company. The underwriter of this policy is