Exam 36: Insurance

Commercial General Liability (CGL)policies apply to product liability cases,actions for wrongful termination of employees,sexual harassment cases,damages caused by business advertising or employee dishonesty,and trademark infringement suits.

The formation of a contract of insurance is governed by the general principles applicable to contracts.

A person has to be an owner or lienholder to have an insurable interest in a property.

Mike Reilly suffered the loss of his home as a result of a chimney fire that was caused by the ignition of soot in the chimney.This fire would be described as:

The insured must comply with a number of time limitations in making a claim.

Fire insurance is a personal contract,and in the absence of statutory or contractual authorization,it can be assigned without the consent of the insurer.

For the purposes of fire insurance,all fires that cause damage are considered hostile fires.

An insurance broker generally is an independent contractor who is not employed by any one insurance company.

An insurer's bad faith refusal to pay a claim generally is considered to be any frivolous or unfounded refusal to comply with the demand of a policyholder to pay according to the policy.

Paul purchased a house and also purchased fire insurance coverage on the house.The policy contained an 80 percent coinsurance clause.Paul maintained coverage in the amount of $150,000 and the value of the house was $250,000.A fire caused a loss of $100,000.Paul will collect:

A person has an insurable interest in property if destruction of that property would cause a monetary or pecuniary loss to that person.

A contract of insurance is to be interpreted as it would be understood by a person with technical knowledge of the law or of insurance.

An ambiguity in an insurance policy is generally interpreted in favor of the insured.

Under no-fault insurance,an insurer is obligated to pay an injured person without regard to whose fault caused the harm.

A professor knew a colleague who was quite ill.The professor applied for life insurance on the colleague's life and named himself as beneficiary.Because of a similarity in the names of the professor and the colleague,an error was made and the policy was issued. The professor also sold his car to a student.When the student drove away,it was clear that the student was an extremely reckless driver.The professor decided not to cancel his property insurance policy that he had maintained on the vehicle that he sold to the student.Shortly thereafter,the colleague died and the student demolished the car.The professor applied for insurance benefits under both policies and each of the insurers resisted payment.Decide both cases.

An insured person is generally allowed,by policy provision or statute,a grace period of what length of time in which to make the payment of a premium due on a life insurance policy?

Janice Beadles owns a large cargo vessel that is used primarily for international trade transactions.Janice is quite concerned about her possible liability and financial losses,as she has become aware of more and more collisions between ships at sea.What can you tell her about the different types of insurance that she could obtain that could assist her in the event of an accident?

Insurance designed to protect an insured driver or owner from the claims of others is called:

If a provision in an insurance policy is ambiguous:

What is a correct statement concerning burden of proof?