Question 1

It is common for life insurance policies to contain a misstatement of age clause.

Accepted Answer

A) True 
 B)False

Question 2

Explain what a misstatement of age clause is.

Accepted Answer

It is common for life insurance policies

Question 3

What are an insurer's obligations in a liability insurance contract?

Accepted Answer

There are several general duties common

Question 4

The extent of a person's insurable interest in property is limited to the value of his or her interest in the property.

Accepted Answer

A) True 
 B)False

Question 5

Flood-related damage to property is an example of a(n) _____ peril.

Accepted Answer

A)  excluded 
B)  covered 
C)  conditional 
D)  open 
A)  excluded 
B)  covered 
C)  conditional 
D)  open

Question 6

A policy for term life insurance is also called ordinary or straight life insurance.

Accepted Answer

A) True 
 B)False

Question 7

An important distinction between valid insurance contracts and wagering contracts is that:

Accepted Answer

A)  insurance contracts create a new risk that did not previously exist, while wagering contracts don't. 
B)  wagering contracts are not contrary to public policy, while insurance contracts are. 
C)  insurance contracts transfer existing risks, while wagering contracts create new ones. 
D)  unlike insurance contracts, wagering contracts are indemnity contracts. 
A)  insurance contracts create a new risk that did not previously exist, while wagering contracts don't. 
B)  wagering contracts are not contrary to public policy, while insurance contracts are. 
C)  insurance contracts transfer existing risks, while wagering contracts create new ones. 
D)  unlike insurance contracts, wagering contracts are indemnity contracts.

Question 8

The coinsurance clause in a fire insurance policy:

Accepted Answer

A)  requires the insured to insure the property to a specified percentage of its fair market value in order to fully recover the value of partial losses. 
B)  allows the insured to recover the difference between the limits stated in the policy and the fair market value of the property. 
C)  allows the insured to recover more than the face value of the policy if the loss is total. 
D)  requires the insured to pay up to a certain amount each year before the insurer's payment obligation begins. 
A)  requires the insured to insure the property to a specified percentage of its fair market value in order to fully recover the value of partial losses. 
B)  allows the insured to recover the difference between the limits stated in the policy and the fair market value of the property. 
C)  allows the insured to recover more than the face value of the policy if the loss is total. 
D)  requires the insured to pay up to a certain amount each year before the insurer's payment obligation begins.

Question 9

Describe the insurable interests required in life and property insurance.

Accepted Answer

In life insurance contracts, the require

Question 10

In an insurance contract, the payment of consideration is called a(n) _____.

Accepted Answer

A)  issue 
B)  negotiable instrument 
C)  premium 
D)  valued policy 
A)  issue 
B)  negotiable instrument 
C)  premium 
D)  valued policy

Exam 37: Insurance

It is common for life insurance policies to contain a misstatement of age clause.

Explain what a misstatement of age clause is.

What are an insurer's obligations in a liability insurance contract?

The extent of a person's insurable interest in property is limited to the value of his or her interest in the property.

Flood-related damage to property is an example of a(n) _____ peril.

A policy for term life insurance is also called ordinary or straight life insurance.

An important distinction between valid insurance contracts and wagering contracts is that:

The coinsurance clause in a fire insurance policy:

Describe the insurable interests required in life and property insurance.

In an insurance contract, the payment of consideration is called a(n) _____.

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Property

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remedies

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

The Agency Relationship-Creation, Duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountants

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers

Introduction to Security

Security Interests in Personal Property

Bankruptcy

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

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