Exam 49: Insurance

Donald applies for a life insurance policy with Equity Insurance Company through Fletch, an agent who works for Equity. Donald pays the initial premium. Fletch writes a binder, which

Mena applies for a homeowners' insurance policy on her house with Neighbors Insurance Company through Obie, an agent who works for Neighbors. In this transaction, Obie is

Under a coinsur?ance clause, a homeowner who insures a home for 80 percent of its value can recover only 80 percent of the cost for damage to it.

Grace applies for a homeowners' insurance policy on her house with Heroic Insurance Company through Ian, a broker. In this transaction, Ian is

The consideration paid to an insurer to obtain an insurance policy is the binder.

Patty, who is divorced, owns a house. She has no reasonable expectation of benefit from the life of Quinn, her ex-spouse, but she applies for insur?ance on his life anyway. She also obtains a fire insurance policy on the house, which she later sells. Five years later, Quinn dies and the house is destroyed in a fire. Can Patty obtain payment on either the death of Quinn or the loss of the house? Explain.

An insurance company may cancel an insured's policy if the insured ap?pears as a witness in a case against the company.

Bret obtains a fire insurance policy on his rental house with Continental Insurance Company. Like all insurance, this policy is an arrangement for

Reno is the beneficiary of a life insurance policy on Sula's life obtained from Thayer Insurance Company. The underwriter of this policy is

Automobile liability insurance covers liability for bodily injury but not property damage.

Dale and Ernie are partners who own and operate Cluck'n Hut, a chain of fast food restaurants. Their partnership obtains insurance on the owners' lives. This is

Doctors Medical Associates obtains an insurance policy that protects its members against malpractice claims by their pa?tients. This is

Under an antilapse clause, an insurance policy will lapse only if no pre?mium is paid on the date due.

A loss sustained between the time of application and the delivery of an insurance policy may not be covered

Grover is an accountant with the firm of Hall & Associates, which ob?tains insurance from Interstate Insurance, Inc, on Grover's life. Grover dies. The proceeds of the policy belong to

Unless insurance proceeds are exempt under state law, a life insurance policy is an asset that is subject to the rights of judgment creditors.

Mila, who captains a commercial fishing boat, obtains a policy from North Coast Insurance Company, which agrees to pay $500,000 to Mila's beneficiary on Mila's death. This is

If a provision in an insurance policy is ambiguous, the provision will be interpreted against the insurance company.

Regular Business, Inc. (RBI), obtains a fire insurance policy from Statistical Insurance Company on a $400,000 warehouse. The policy includes an 80-percent coinsurance clause. RBI insures the property for $320,000. In a fire, the warehouse suffers $200,000 in damage. RBI can recover

If a life insurance applicant pays a premium but dies before the physical exam, there is obviously no coverage.