Exam 37: Insurance-Part Seven Commercial Paper

In an insurance contract,the payment of consideration is called a(n)_____.

Term contracts,like whole life contracts,build cash surrender value or loan value.

Open policies allow the insured to recover the:

The fire insurance policy on Dullard's home contained a 50 percent coinsurance clause.Dullard's home had a fair market value of $100,000.The face amount of the policy covering the home was $30,000.A hostile fire caused $30,000 worth of damage to the home.To what amount is Dullard entitled?

Which of the following statements is true about cancellation of an insurance policy?

Under the new federal health care legislation to be introduced in 2014,health insurance contracts do not have to cover preexisting health conditions.

Explain the right of subrogation.

Under the right of subrogation,the insurer _____.

Why are property insurance policies generally nonassignable?

Which of the following insurance contracts is enforceable?

A term life insurance contract:

Unearned portions of any premiums paid by the insured need not be returned to the insured at the cancellation of the policy by the insurer.

Malpractice insurance is similar to business liability coverage in that it:

The coinsurance clause in a fire insurance policy:

If property covered by a valued policy is totally destroyed,the _____.

Malpractice insurance provides protection for professionals whose negligent professional conduct causes injuries to third persons.

Whole life insurance contracts:

Serena purchased a home for $220,000,insuring it for $120,000 with Falcon Insurance.She later purchased a $60,000 policy from Devon Life.The home was totally destroyed by fire six months later.Under these circumstances,which of the following statements is true?

Fire insurance contracts generally cover losses only from hostile fires.

Property insurance contracts are indemnity contracts.