Exam 30: Insurance

Cooks Delight LLC makes and sells kitchen appliances. To cover injuries to consumers if the appliances prove defective, Cooks should obtain

Clark obtains from Delta Insurance, Inc., a policy that provides if a dispute arises between the parties concerning the settlement of a claim, the dispute must be submitted to an impartial third party, not a court, for resolution. This is

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

Organic Produce Company obtains an insurance policy to protect against losses incurred by the firm as a result of being held liable for personal injuries or property damage sustained by others. This is

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

Kelsey obtains a business liability insurance policy from Loyal Insurance Company for Kelsey's Modeling & Hobby Crafts store. When an event occurs that gives rise to a claim, Loyal has a duty to

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

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

Under a multiple insurance clause, a homeowner who insures a home for 80 percent of its value can recover only 80 percent of the cost for damage to it.

An applicant for an insurance policy is called an underwriter.

Vanessa obtains a life insurance policy with no cash surrender value and names her son Winthorp as the beneficiary. This is

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