Exam 36: Insurance

Subornation is the right of a party secondarily liable to stand in the place of the creditor after making payment to the creditor and to enforce the creditor's right against the party primarily liable in order to obtain indemnity from such primary party.

The person to whom an insurance promise is made is called:

Part of every whole life insurance premium covers the cost of insurance.The remainder of the premium is devoted to the investment component of the policy,which builds up over time to its:

When a provision of an endorsement conflicts with a provision of a policy,the endorsement controls.

Generally,the terms broker and agent are synonymous because both work directly for the insurer.

An insurer who wrongfully refuses to defend the insured is liable for:

If the insured lives to the end of the policy period of an endowment insurance policy,the policy pays:

For the purposes of Personal Auto Policy (PAP)coverage,an insured person "uses" an automobile by unloading groceries from the car while it is parked in the garage.

If an insured person tells her current husband that she is going to name him as beneficiary of her life insurance in place of her former husband and dies a year later without having taken any further steps with respect to the change of the policy beneficiary,the insurance company must pay the proceeds of the policy to:

A coinsurance clause requires the insured to maintain insurance on the covered property up to a certain amount or a certain percent of the value,generally 80 percent.

The coverage of the Personal Auto Policy (PAP)is limited to claims arising from the "use and operation" of an automobile.

Armenia purchased life insurance on her life.Regarding the beneficiary:

Homeowner's insurance is a combination of the standard fire insurance policy and comprehensive personal liability insurance.