Question 1

The "incontestability clause" found in life insurance policies:

Accepted Answer

A)  bars the insurer from objecting on the basis of the purchase of the policy with the intent to murder the insured. 
B)  allows the insurer to contest its liability on the policy only if the policy has been in force for a specified period of time. 
C)  bars an insured from reinstating a lapsed policy that has not been surrendered for its cash surrender value. 
D)  allows the insurer to object on the basis of absence of insurable interest. 
A)  bars the insurer from objecting on the basis of the purchase of the policy with the intent to murder the insured. 
B)  allows the insurer to contest its liability on the policy only if the policy has been in force for a specified period of time. 
C)  bars an insured from reinstating a lapsed policy that has not been surrendered for its cash surrender value. 
D)  allows the insurer to object on the basis of absence of insurable interest.

Question 2

For the insurance to be valid,the required insurable interest in life insurance contracts must exist:

Accepted Answer

A)  before the loss occurs. 
B)  at the time the loss occurs. 
C)  at the time the policy was issued. 
D)  throughout the term of the policy. 
A)  before the loss occurs. 
B)  at the time the loss occurs. 
C)  at the time the policy was issued. 
D)  throughout the term of the policy.

Question 3

A person who seeks to recover benefits under a life insurance policy:

Accepted Answer

A)  must notify the insured before a loss is likely to happen. 
B)  needs to furnish a sworn statement of loss. 
C)  needs to furnish proof of third party witness to the loss. 
D)  must notify the insurer of the loss and furnish proof of loss. 
A)  must notify the insured before a loss is likely to happen. 
B)  needs to furnish a sworn statement of loss. 
C)  needs to furnish proof of third party witness to the loss. 
D)  must notify the insurer of the loss and furnish proof of loss.

Question 4

Homeowners' insurance policies:

Accepted Answer

A)  often provide coverage under their comprehensive and collision sections for car damages resulting from vandalism. 
B)  insure both the insured's dwelling and the personal property located on the real property. 
C)  do not cover personal property that was temporarily removed from the dwelling at the time it was damaged. 
D)  do not allow property owners to purchase specialized policies to make up for gaps in a standard insurance contract. 
A)  often provide coverage under their comprehensive and collision sections for car damages resulting from vandalism. 
B)  insure both the insured's dwelling and the personal property located on the real property. 
C)  do not cover personal property that was temporarily removed from the dwelling at the time it was damaged. 
D)  do not allow property owners to purchase specialized policies to make up for gaps in a standard insurance contract.

Question 5

Insurance companies must wait until litigation has been concluded to satisfy their duty to pay.

Accepted Answer

A) True 
 B)False

Question 6

In whole life insurance contracts,the _____.

Accepted Answer

A)  rate of the premiums to be paid decreases if the face value increases 
B)  loan value decreases as the age of the policy increases 
C)  insurer pays the face value of the policy on the death of the insured 
D)  loan value developed by the contract enables the insurer to borrow money from the insured 
A)  rate of the premiums to be paid decreases if the face value increases 
B)  loan value decreases as the age of the policy increases 
C)  insurer pays the face value of the policy on the death of the insured 
D)  loan value developed by the contract enables the insurer to borrow money from the insured

Question 7

Which of the following is most likely to be non-claimable under property insurance contracts?

Accepted Answer

A)  Overflows from burst pipes 
B)  Loss from vandalism 
C)  Loss from hostile fire 
D)  Nuclear contamination 
A)  Overflows from burst pipes 
B)  Loss from vandalism 
C)  Loss from hostile fire 
D)  Nuclear contamination

Question 8

As a general rule,contracts are assignable:

Accepted Answer

A)  even if the policy's terms limit assignability. 
B)  if they are not life insurance policies. 
C)  even without a designated beneficiary's consent. 
D)  if they are not property insurance policies. 
A)  even if the policy's terms limit assignability. 
B)  if they are not life insurance policies. 
C)  even without a designated beneficiary's consent. 
D)  if they are not property insurance policies.

Question 9

An insurance policy taken out by a minor is not voidable at the election of the minor.

Accepted Answer

A) True 
 B)False

Question 10

To be able to claim loss,those who have an insurable interest in property must have that interest:

Accepted Answer

A)  before the loss occurs. 
B)  at the time the loss occurs. 
C)  at the time the policy was issued. 
D)  throughout the term of the policy. 
A)  before the loss occurs. 
B)  at the time the loss occurs. 
C)  at the time the policy was issued. 
D)  throughout the term of the policy.

Exam 37: Insurance-Part Seven Commercial Paper

The "incontestability clause" found in life insurance policies:

For the insurance to be valid,the required insurable interest in life insurance contracts must exist:

A person who seeks to recover benefits under a life insurance policy:

Homeowners' insurance policies:

Insurance companies must wait until litigation has been concluded to satisfy their duty to pay.

In whole life insurance contracts,the _____.

Which of the following is most likely to be non-claimable under property insurance contracts?

As a general rule,contracts are assignable:

An insurance policy taken out by a minor is not voidable at the election of the minor.

To be able to claim loss,those who have an insurable interest in property must have that interest:

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Propertypart Two Contracts

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remediespart Three Sales

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contractspart Four Agency and Employment

The Agency Relationship-Creation, duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws-Part Five Business Organizations

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountantspart Six Property

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers-Part Eight Credit Transactions

Introduction to Security

Security Interests in Personal Property

Bankruptcy-Part Nine Government Regulation

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

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