Question 1

A no-fault insurance assures an insured party that coverage is available if they are injured in an automobile accident.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following types of insurances provides replacement cost insurance?

Accepted Answer

A) health insurance 
B) standard fire insurance 
C) disability insurance 
D) life insurance 
A) health insurance 
B) standard fire insurance 
C) disability insurance 
D) life insurance

Question 3

Renter's insurance fails to cover an insured for personal liability.

Accepted Answer

A) True 
 B)False

Question 4

Norah is a single mother who has just taught Janet,her daughter,to drive.Once Janet has a driving permit,Norah intends to let Janet do most of the driving because driving for long stretches usually gives Norah severe pain in her upper back and shoulders.Norah's car is insured in her name.In this scenario,Norah could opt for a(n)________ to protect the car from damages that could occur while Janet drives the car.

Accepted Answer

A) collision insurance 
B) comprehensive insurance 
C) omnibus clause 
D) medical payment coverage 
A) collision insurance 
B) comprehensive insurance 
C) omnibus clause 
D) medical payment coverage

Question 5

________ is a form of property insurance that insures an automobile from loss or damage due to causes other than collision.

Accepted Answer

A) Omnibus insurance 
B) Comprehensive insurance 
C) Coinsurance clause 
D) No-fault automobile insurance 
A) Omnibus insurance 
B) Comprehensive insurance 
C) Coinsurance clause 
D) No-fault automobile insurance

Question 6

For a life insurance,the owner and beneficiary cannot be the same person.

Accepted Answer

A) True 
 B)False

Question 7

What is the difference between an insurance broker and an insurance agent?

Accepted Answer

A) An insurance agent works exclusively for one company, while an insurance broker works for a number of insurance companies. 
B) An agent requires a commission payment after a deal is made, while a broker requires a service charge to be paid before the deal is made. 
C) An agent represents the insured, while a broker represents the company. 
D) An agent is authorized to sell insurance directly, while a broker can only mediate an insurance contract. 
A) An insurance agent works exclusively for one company, while an insurance broker works for a number of insurance companies. 
B) An agent requires a commission payment after a deal is made, while a broker requires a service charge to be paid before the deal is made. 
C) An agent represents the insured, while a broker represents the company. 
D) An agent is authorized to sell insurance directly, while a broker can only mediate an insurance contract.

Question 8

________ is a means for persons and businesses to protect themselves against the risk of loss.

Accepted Answer

A) Abatement 
B) Ademption 
C) Insurance 
D) Easement 
A) Abatement 
B) Ademption 
C) Insurance 
D) Easement

Question 9

What happens to the life insurance proceeds upon the death of an insured who has not named a beneficiary?

Accepted Answer

A) The proceeds are given to the state. 
B) The proceeds remain with the insurer for the full-term of the insurance. 
C) The proceeds are given to charitable organizations. 
D) The proceeds go to the insured's estate. 
A) The proceeds are given to the state. 
B) The proceeds remain with the insurer for the full-term of the insurance. 
C) The proceeds are given to charitable organizations. 
D) The proceeds go to the insured's estate.

Question 10

Who is an underwriter?

Accepted Answer

A) a lawyer who represents an insurance company 
B) an agent who works for only one insurance company 
C) a broker who works on behalf of many insurance companies 
D) an insurance company that provides coverage to the insured 
A) a lawyer who represents an insurance company 
B) an agent who works for only one insurance company 
C) a broker who works on behalf of many insurance companies 
D) an insurance company that provides coverage to the insured

Question 11

If an insured does not have an insurable interest in the property being insured,the contract is treated as a wager.

Accepted Answer

A) True 
 B)False

Question 12

What is a key-person life insurance? How does it influence a buy-sell agreement?

Accepted Answer

In many small businesses,such as partner

Question 13

Which of the following statements is true of a life insurance?

Accepted Answer

A) The insurable interest need not exist at the time of insurance. 
B) The insurable interest need not exist at the time of death or loss. 
C) The beneficiary and the insured cannot be the same person. 
D) The beneficiary and the insured must be bound by a relationship of blood. 
A) The insurable interest need not exist at the time of insurance. 
B) The insurable interest need not exist at the time of death or loss. 
C) The beneficiary and the insured cannot be the same person. 
D) The beneficiary and the insured must be bound by a relationship of blood.

Question 14

Who are the different parties to a life insurance contract? How is a beneficiary determined for a life insurance?

Accepted Answer

There are four parties to a life insuran

Question 15

A homeowner's policy does not cover theft that takes place at an insured's workplace even if the item is insured.

Accepted Answer

A) True 
 B)False

Question 16

A directors' and officers' liability insurance helps an organization sue its directors and officers in case of personal negligence.

Accepted Answer

A) True 
 B)False

Question 17

A personal articles floater helps insure specific items like heirlooms.

Accepted Answer

A) True 
 B)False

Question 18

An insurance policy,once made,cannot be modified.

Accepted Answer

A) True 
 B)False

Question 19

A(n)________ is a clause in an insurance policy that provides that insurance proceeds are payable only after the insured has paid a specified amount toward the damage or loss.

Accepted Answer

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

Question 20

Insurance is a form of coverage for loss that is initiated after the loss has occurred.

Accepted Answer

A) True 
 B)False

Exam 50: Insurance

A no-fault insurance assures an insured party that coverage is available if they are injured in an automobile accident.

Which of the following types of insurances provides replacement cost insurance?

Renter's insurance fails to cover an insured for personal liability.

________ is a form of property insurance that insures an automobile from loss or damage due to causes other than collision.

For a life insurance,the owner and beneficiary cannot be the same person.

What is the difference between an insurance broker and an insurance agent?

________ is a means for persons and businesses to protect themselves against the risk of loss.

What happens to the life insurance proceeds upon the death of an insured who has not named a beneficiary?

Who is an underwriter?

If an insured does not have an insurable interest in the property being insured,the contract is treated as a wager.

What is a key-person life insurance? How does it influence a buy-sell agreement?

Which of the following statements is true of a life insurance?

Who are the different parties to a life insurance contract? How is a beneficiary determined for a life insurance?

A homeowner's policy does not cover theft that takes place at an insured's workplace even if the item is insured.

A directors' and officers' liability insurance helps an organization sue its directors and officers in case of personal negligence.

A personal articles floater helps insure specific items like heirlooms.

An insurance policy,once made,cannot be modified.

A(n)________ is a clause in an insurance policy that provides that insurance proceeds are payable only after the insured has paid a specified amount toward the damage or loss.

Insurance is a form of coverage for loss that is initiated after the loss has occurred.

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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