Question 1

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 2

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 3

Able Adams has a number of rare paintings at home that he inherited from his paternal family,many of whom were patrons and collectors of art.Able knows that the value of these paintings makes them likely targets of theft and he needs to insure these items specifically by using a ________.

Accepted Answer

A) homeowner's policy 
B) standard fire insurance 
C) personal articles floater 
D) personal liability coverage 
A) homeowner's policy 
B) standard fire insurance 
C) personal articles floater 
D) personal liability coverage

Question 4

What is the copay clause in an insurance policy?

Accepted Answer

A) a clause in a life insurance contract that provides no coverage if the insured commits suicide before a stipulated date 
B) a clause in an insurance policy that expressly stipulates the risks that are not covered by the insurance policy 
C) a clause that prevents insurers from contesting statements made by insureds in applications after the passage of a stipulated number of years 
D) a clause that requires the insured to pay a percentage of an insured loss along with the remainder being paid by the insurer 
A) a clause in a life insurance contract that provides no coverage if the insured commits suicide before a stipulated date 
B) a clause in an insurance policy that expressly stipulates the risks that are not covered by the insurance policy 
C) a clause that prevents insurers from contesting statements made by insureds in applications after the passage of a stipulated number of years 
D) a clause that requires the insured to pay a percentage of an insured loss along with the remainder being paid by the insurer

Question 5

Give an account of the no-fault automobile liability insurance.

Accepted Answer

Most automobile insurance coverage is ba

Question 6

For a life insurance,insurable interest is necessary at the time of loss.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is true of the suicide clause in a life insurance?

Accepted Answer

A) The insurer is liable to pay in cases of legitimate suicides even if the life insurance policy had elapsed. 
B) The suicide clause has a specified date set. 
C) The insurer doesn't have to pay the beneficiary even if the suicide takes place after the specified date. 
D) The suicide has to occur within the specified date for payment. 
A) The insurer is liable to pay in cases of legitimate suicides even if the life insurance policy had elapsed. 
B) The suicide clause has a specified date set. 
C) The insurer doesn't have to pay the beneficiary even if the suicide takes place after the specified date. 
D) The suicide has to occur within the specified date for payment.

Question 8

Which of the following statements is true of insurance?

Accepted Answer

A) It has to be paid after the risk has been encountered. 
B) It can be obtained even if one has no insurable interest in the property being insured. 
C) It is a means of transferring and distributing the risk of loss. 
D) It cannot be modified once issued. 
A) It has to be paid after the risk has been encountered. 
B) It can be obtained even if one has no insurable interest in the property being insured. 
C) It is a means of transferring and distributing the risk of loss. 
D) It cannot be modified once issued.

Question 9

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 10

Automobile liability insurance covers damages that an insured causes to third parties.

Accepted Answer

A) True 
 B)False

Question 11

An insurable interest is created when an insurer has ownership of the item being insured.

Accepted Answer

A) True 
 B)False

Question 12

An owner of real property or a mortgagee pays only one premium for title insurance,usually at closing.

Accepted Answer

A) True 
 B)False

Question 13

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 14

A drive-other coverage protects an insured for damages to a rental car caused by the insured.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

If Matheson wishes to be covered for the possibility of the chauffeur getting into an accident,he would require a(n)________.

Accepted Answer

A) omnibus clause in his automobile insurance 
B) collision clause in his automobile insurance 
C) deductibility clause in his automobile insurance 
D) double indemnity clause in his automobile insurance 
A) omnibus clause in his automobile insurance 
B) collision clause in his automobile insurance 
C) deductibility clause in his automobile insurance 
D) double indemnity clause in his automobile insurance

Question 17

Which of the following clauses protects the insurers from intentional or unintentional material or informative misrepresentation from an insurance applicant?

Accepted Answer

A) exclusions from coverage clause 
B) incontestability clause 
C) deductible clause 
D) coinsurance clause 
A) exclusions from coverage clause 
B) incontestability clause 
C) deductible clause 
D) coinsurance clause

Question 18

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 19

Which of the following statements is true of umbrella insurance?

Accepted Answer

A) It cannot be used for liability coverage. 
B) It does not require the insured to have already purchased insurance policies. 
C) It cannot be used with other insurance policies. 
D) It is only paid if the limits on other insurance policies have been exceeded. 
A) It cannot be used for liability coverage. 
B) It does not require the insured to have already purchased insurance policies. 
C) It cannot be used with other insurance policies. 
D) It is only paid if the limits on other insurance policies have been exceeded.

Question 20

Shippers can purchase comprehensive insurance to cover the risk of loss to their goods during shipment.

Accepted Answer

A) True 
 B)False

Exam 50: Insurance

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

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

Able Adams has a number of rare paintings at home that he inherited from his paternal family,many of whom were patrons and collectors of art.Able knows that the value of these paintings makes them likely targets of theft and he needs to insure these items specifically by using a ________.

What is the copay clause in an insurance policy?

Give an account of the no-fault automobile liability insurance.

For a life insurance,insurable interest is necessary at the time of loss.

Which of the following statements is true of the suicide clause in a life insurance?

Which of the following statements is true of insurance?

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.

Automobile liability insurance covers damages that an insured causes to third parties.

An insurable interest is created when an insurer has ownership of the item being insured.

An owner of real property or a mortgagee pays only one premium for title insurance,usually at closing.

What kind of insurance would protect Lucy from being sued by the injured employees for this damage?

A drive-other coverage protects an insured for damages to a rental car caused by the insured.

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

If Matheson wishes to be covered for the possibility of the chauffeur getting into an accident,he would require a(n)________.

Which of the following clauses protects the insurers from intentional or unintentional material or informative misrepresentation from an insurance applicant?

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

Which of the following statements is true of umbrella insurance?

Shippers can purchase comprehensive insurance to cover the risk of loss to their goods during shipment.

Legal Environment of Business and Online Commerce

Courts and Jurisdiction

Judicial, alternative, and Online Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crime

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, defenses, and Discharge

Banking System and Electronic Financial Transactions

Credit, mortgages, and Debtors Rights

Secured Transactions

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, agents, and Independent Contractors

Employment, worker Protection, and Immigration Law

Labor Law

Equal Opportunity in Employment

Small Business, entrepreneurship, and General Partnerships

Limited Partnerships and Special Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Businesses

Investor Protection, e-Securities, and Wall Street Reform

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Antitrust Law and Unfair Trade Practices

Personal Property, real Property, and Insurance

Real Property

Landlord-Tenant Law and Land Use Regulation

Accountants Duties and Liability

Wills, trusts, and Estates

Family Law

International and World Trade Law

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