Exam 30: Insurance

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

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 business organization cannot obtain insurance on the life of a person, even on the life of an individual who is important to that organization.

Commerce Insurance, Inc., has a valid reason to cancel a policy issued to DIY Auto Parts Company. In most states, Commerce could cancel the policy on

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

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

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

Under an antilapse clause, an insurance policy will not lapse under any circumstances.

An insurance agent ordinarily works for the insurance company.

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

Ricky obtains an insurance policy from Security Insurance, Inc. The policy provides that on Ricky's death Security will pay $500,000 to Tori, Ricky's spouse and beneficiary. This is

The insured can cancel a policy only under certain circumstances.

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.

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

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

An insurance application is part of the insurance contract.

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

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

State law determines the status of all parties obtaining insurance.

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