Exam 51: Insurance

Boyce obtains from Capital Insurance Company a policy that provides that if the parties cannot agree on the amount of a loss covered by the policy,an estimate of the value by an impartial third party can be de?manded.This is

Tira obtains two fire insurance policies on her house.Each is an open policy with a pro rata clause.Tira's policy with Unity Insurance Company is for a maximum amount of $100,000.Her policy with Verity Insurance Company is for a maximum amount of $50,000.Each policy includes a pro rata clause.Due to defective electrical wiring,Tira's house catches fire and burns completely.The value the house at the time of the loss is $120,000.Tira files a proof of loss with each insurer.What is an open policy? What is a pro rata clause? What is the liability of Unity and Verity for this event?

Cash surrender value is the amount an insured must pay to cancel a policy.

Speedy Shipping Corporation applies to TransInsurance Company for a fire insurance pol?icy on Speedy's warehouse.On the application,Speedy misrepresents the age of the property to obtain a lower premium.When a fire soon destroys the ware?house,TransInsurance can

Dhani is the beneficiary of a life insurance policy on Elmo's life obtained from Famous Insurance Company.The insurer of this policy is

Brassy obtains an insurance policy for her electric guitar collection from Crest Insurance Company.Brassy can cancel the policy

An insured who has policies with several companies covering the same insurable interest has multiple insurance coverage.

An insurance application is part of the insurance contract.

The existence of an insurable interest is a primary concern when determining liability under an insurance policy.

A coinsurance clause provides that two or more people will receive payment on a claim under the same insurance policy.

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

A sibling may have an insurable interest in his or her sibling's life.

Ginny obtains a health insurance policy for her family from Hope Insurance Company.The policy includes an incontestability clause.Under such a clause,after a policy has been in force for two or three years

Liability insurance protects against liability imposed on the insured as a result of injuries to the person or property of another.

Term insurance provides life insurance with an accumulated cash surrender value that can be used as collateral for a loan.

Dag obtains from Expedient Insurance Company a policy that provides Dag has thirty days after a premium's due date to pay it before the policy will be canceled.This is

The insured can cancel a policy at any time.

Rolling Transport & Storage Corporation wants to insure its warehouse to obtain the maximum possible recovery for the lowest possible pre?mium.To obtain the maximum recovery under a coinsurance clause,the percentage of the value of the property that should be insured is

Shingle & Tile Roofing Contractor,LLC,obtains an insurance policy against liability for injuries or losses sustained by employees during the course of their employment.The policy covers claims not covered by workers' compensation insurance.This is

International Foods Corporation insures its real and personal property,as well as the lives of its key employees,to protect its financial interest should some event undermine its security.This is