Exam 50: Insurance

Premiums are based on an estimate of the number of parties within the pool who will suffer the risks insured against.

An insurable interest is created when an insurer has ownership of the item being insured.

Which of the following insurances covers the death of the co-owner's loss to the business?

Which of the following clauses protects the insurers from intentional or unintentional material or informative misrepresentation from an insurance applicant?

If Matheson wishes to be covered for the possibility of the chauffeur getting into an accident, he would require a(n) ________.

A directors' and officers' liability insurance helps an organization sue its directors and officers in case of personal negligence.

What is a key-person life insurance? How does it influence a buy-sell agreement?

A person who is to receive life insurance proceeds when the insured dies is known as a ________.

A drive-other coverage protects an insured for damages to a rental car caused by the insured.

An insurance policy, once made, cannot be modified.

Which of the following statements is true of the suicide clause in a life insurance?

The coverage of a standard fire insurance policy cannot be enlarged by adding riders or endorsements to the policy.

Insureds who want to increase their liability coverage beyond the original coverage can purchase a(n) ________.

Norah is a single mother who has just taught Janet, her daughter, to drive. Once Janet has a driving permit, Norah intends to let Janet do most of the driving because driving for long stretches usually gives Norah severe pain in her upper back and shoulders. Norah's car is insured in her name. In this scenario, Norah could opt for a(n) ________ to protect the car from damages that could occur while Janet drives the car.

If an insured does not have an insurable interest in the property being insured, the contract is treated as a wager.

________ is a means for persons and businesses to protect themselves against the risk of loss.

Insurance is a form of coverage for loss that is initiated after the loss has occurred.

What is an automobile liability insurance?

Roger Ray runs a motel in a rented property and sublets a part of its garage to the owner of a nearby fuel station. Three months later, the motel catches fire from a fuel leak in the garage and Roger suffers severe damages. If Roger owns a standard fire insurance policy for years, the insurer can use the ________ to refuse covering the damage caused by the fire.

Shippers can purchase comprehensive insurance to cover the risk of loss to their goods during shipment.