Exam 49: 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

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

Beth obtains a life insurance policy from Consumers Insurance Company, naming her spouse Don as the beneficiary. Beth and Don are di?vorced. There is no provision in the policy about divorce. On Beth's death, Consumers must

Bob applies to City Insurance Company for insurance. City issues a pol?icy, but later discovers that Bob's application includes several misstate?ments. Most likely, these misstatements can

Feta is a partner in the software design firm GR8 Games, Inc., which ob?tains key-person in?surance on Feta's life in the amount of $1 million from Halo Insurance Company. Feta quits GR8 Games to join Icy Applications, Inc. Feta dies. Halo must pay the $1 million to

Arbitration of disputes over insurance claims is often provided for in policies.

To avoid payment on a claim, an insurance company may raise any de?fense that would be valid in any action for breach of contract.

Whole life insurance provides protection with a cumulated cash surrender value that can be used as collateral for a loan.

A fire insurance policy is assignable without the insurer's consent because the policy "runs" with the insured property.

Under an antilapse clause, an insurance policy will not lapse even if no payment is made on the date due.

Erte applies for, and obtains, casualty insurance coverage from Friendly Insurance Company for his business, Golf Club, Inc. The effective date of the policy is the date

Trustworthy Insurance, Inc., has a valid reason to cancel a policy issued to USA Sales Company. In most states, Trustworthy could cancel the policy on

Because insurance law follows contract law, bad faith tort actions against insurers are not allowed.

General Allied Company obtains insurance policies with Hy-Rate Insurance, Inc., and Ideal InsurCo against the risk of loss of General's of?fice building in a fire. Each policy includes a multiple-insurance clause. A fire partially destroys the building. General can collect from Hy-Rate

A party must own property to have an insurable interest in it.

Peg obtains from QT Insurance Company a policy that provides that af?ter it has been in force for a certain time, QT cannot question state?ments made in the application. This is

A person can insure anything in which he or she has an insurable interest.

A person has an insurable interest in property if he or she would sustain a financial loss from damage to the property.

A fire insurance policy covers losses to the insured as a re?sult of fire and lightning, but not damage from smoke and water.

A coinsurance clause provides that two or more people will be covered by the same life insurance policy.