Question 1

What is the difference between an insurance broker and an insurance agent?

Accepted Answer

A)  An insurance agent works exclusively for one company, while an insurance broker works for a number of insurance companies. 
B)  An agent requires a commission payment after a deal is made, while a broker requires a service charge to be paid before the deal is made. 
C)  An agent represents the insured, while a broker represents the company. 
D)  An agent is authorized to sell insurance directly, while a broker can only mediate an insurance contract. 
A)  An insurance agent works exclusively for one company, while an insurance broker works for a number of insurance companies. 
B)  An agent requires a commission payment after a deal is made, while a broker requires a service charge to be paid before the deal is made. 
C)  An agent represents the insured, while a broker represents the company. 
D)  An agent is authorized to sell insurance directly, while a broker can only mediate an insurance contract.

Question 2

Which of the following statements is true of insurance?

Accepted Answer

A)  It has to be paid after the risk has been encountered. 
B)  It can be obtained even if one has no insurable interest in the property being insured. 
C)  It is a means of transferring and distributing the risk of loss. 
D)  It cannot be modified once issued. 
A)  It has to be paid after the risk has been encountered. 
B)  It can be obtained even if one has no insurable interest in the property being insured. 
C)  It is a means of transferring and distributing the risk of loss. 
D)  It cannot be modified once issued.

Question 3

Renter's insurance fails to cover an insured for personal liability.

Accepted Answer

A) True 
 B)False

Question 4

A professional malpractice insurance protects professionals against liability caused by personal negligence.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following types of insurances will help an owner of a real property establish clear ownership over that property?

Accepted Answer

A)  comprehensive insurance 
B)  title insurance 
C)  omnibus insurance 
D)  renter's insurance 
A)  comprehensive insurance 
B)  title insurance 
C)  omnibus insurance 
D)  renter's insurance

Question 6

A(n) ________ is an automobile insurance system used by some states in which the driver's insurance company pays for any injuries or death the driver suffers in an accident irrespective of who caused the accident.

Accepted Answer

A)  no-fault insurance 
B)  comprehensive insurance 
C)  automobile liability insurance 
D)  collision insurance 
A)  no-fault insurance 
B)  comprehensive insurance 
C)  automobile liability insurance 
D)  collision insurance

Question 7

A homeowner's policy does not cover theft that takes place at an insured's workplace even if the item is insured.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is true of the collision insurance?

Accepted Answer

A)  The coverage is in effect whether the insured's car is moving or standing still. 
B)  The coverage is in effect even if another car was not involved in damaging the car belonging to the insured. 
C)  The coverage also gives protection from car thefts, natural calamities, vandalism, and riots. 
D)  The coverage gives insurance for damages caused by the insured on third parties. 
A)  The coverage is in effect whether the insured's car is moving or standing still. 
B)  The coverage is in effect even if another car was not involved in damaging the car belonging to the insured. 
C)  The coverage also gives protection from car thefts, natural calamities, vandalism, and riots. 
D)  The coverage gives insurance for damages caused by the insured on third parties.

Question 9

A buy-sell agreement made using proceeds from a key-life insurance is not considered valid.

Accepted Answer

A) True 
 B)False

Question 10

A no-fault insurance assures an insured party that coverage is available if they are injured in an automobile accident.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following types of insurances provides replacement cost insurance?

Accepted Answer

A)  health insurance 
B)  standard fire insurance 
C)  disability insurance 
D)  life insurance 
A)  health insurance 
B)  standard fire insurance 
C)  disability insurance 
D)  life insurance

Question 12

An insured can cover his automobile under both collision insurance and comprehensive insurance simultaneously.

Accepted Answer

A) True 
 B)False

Question 13

Most employers pay for disability insurance for their employees in totality.

Accepted Answer

A) True 
 B)False

Question 14

Who is an underwriter?

Accepted Answer

A)  a lawyer who represents an insurance company 
B)  an agent who works for only one insurance company 
C)  a broker who works on behalf of many insurance companies 
D)  an insurance company that provides coverage to the insured 
A)  a lawyer who represents an insurance company 
B)  an agent who works for only one insurance company 
C)  a broker who works on behalf of many insurance companies 
D)  an insurance company that provides coverage to the insured

Question 15

An insurance contract is called a ________.

Accepted Answer

A)  policy 
B)  premium 
C)  lien 
D)  writ 
A)  policy 
B)  premium 
C)  lien 
D)  writ

Question 16

In the context of insurance, what does the term premium refer to?

Accepted Answer

A)  the money received from the defaulting party 
B)  the money paid to the insurance company 
C)  the money paid to insured after an accidental damage 
D)  the money paid to insurance brokers as fee 
A)  the money received from the defaulting party 
B)  the money paid to the insurance company 
C)  the money paid to insured after an accidental damage 
D)  the money paid to insurance brokers as fee

Question 17

If no beneficiary is mentioned in a life insurance, then the proceeds of the insurance go to the insured's estate.

Accepted Answer

A) True 
 B)False

Question 18

A(n) ________ is a document that modifies an insurance policy and becomes part of the insurance policy.

Accepted Answer

A)  endorsement 
B)  easement 
C)  injunction 
D)  convention 
A)  endorsement 
B)  easement 
C)  injunction 
D)  convention

Question 19

The owner of the policy in a life insurance without exception is the ________.

Accepted Answer

A)  insurance company that issues the policy 
B)  person who pays the premiums 
C)  next of kin of the insured person 
D)  person who receives the insurance proceeds 
A)  insurance company that issues the policy 
B)  person who pays the premiums 
C)  next of kin of the insured person 
D)  person who receives the insurance proceeds

Question 20

What happens to the life insurance proceeds upon the death of an insured who has not named a beneficiary?

Accepted Answer

A)  The proceeds are given to the state. 
B)  The proceeds remain with the insurer for the full-term of the insurance. 
C)  The proceeds are given to charitable organizations. 
D)  The proceeds go to the insured's estate. 
A)  The proceeds are given to the state. 
B)  The proceeds remain with the insurer for the full-term of the insurance. 
C)  The proceeds are given to charitable organizations. 
D)  The proceeds go to the insured's estate.

Exam 50: Insurance

What is the difference between an insurance broker and an insurance agent?

Which of the following statements is true of insurance?

Renter's insurance fails to cover an insured for personal liability.

A professional malpractice insurance protects professionals against liability caused by personal negligence.

Which of the following types of insurances will help an owner of a real property establish clear ownership over that property?

A(n) ________ is an automobile insurance system used by some states in which the driver's insurance company pays for any injuries or death the driver suffers in an accident irrespective of who caused the accident.

A homeowner's policy does not cover theft that takes place at an insured's workplace even if the item is insured.

Which of the following statements is true of the collision insurance?

A buy-sell agreement made using proceeds from a key-life insurance is not considered valid.

A no-fault insurance assures an insured party that coverage is available if they are injured in an automobile accident.

Which of the following types of insurances provides replacement cost insurance?

An insured can cover his automobile under both collision insurance and comprehensive insurance simultaneously.

Most employers pay for disability insurance for their employees in totality.

Who is an underwriter?

An insurance contract is called a ________.

In the context of insurance, what does the term premium refer to?

If no beneficiary is mentioned in a life insurance, then the proceeds of the insurance go to the insured's estate.

A(n) ________ is a document that modifies an insurance policy and becomes part of the insurance policy.

The owner of the policy in a life insurance without exception is the ________.

What happens to the life insurance proceeds upon the death of an insured who has not named a beneficiary?

Legal Heritage and the Digital Age

Courts and Jurisdiction

Judicial, Alternative, and E-Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crime

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, Defenses, and Discharge

Banking System and Electronic Financial Transactions

Credit, Mortgages, and Debtors Rights

Secured Transactions

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, Agents, and Independent Contractors

Employment, Worker Protection, and Immigration Law

Labor Law

Equal Opportunity in Employment

Small Business, Entrepreneurship, and General Partnerships

Limited Partnerships and Special Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchise and Special Forms of Business

Investor Protection and E-Securities Transactions

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Antitrust Law and Unfair Trade Practices

Personal Property, Real Property, and Insurance

Real Property

Landlord-Tenant Law and Land Use Regulation

Accountants Duties and Liability

Wills, Trusts, and Estates

Family Law

International and World Trade Law

Filters