Question 1

An insurance policy that covers an individual's life or health is ________ insurance.

Accepted Answer

A)  Unitary
B)  Personal
C)  Protection
D)  Individual
E)  FamilyF) B) and E)
G) D) and E)

Question 2

Regarding Beatriz's assertion that vehicle insurance policies do not generally provide coverage for legal representation,which of the following is true?

Accepted Answer

A)  Beatriz is incorrect.
B)  Beatriz is correct only in situations in which a student with a student policy is involved in an accident.
C)  Beatriz is correct only in situations in which an insured has had at least two previous accidents.
D)  Beatriz is correct because insureds are expected to shoulder some of the burden of accidents.
E)  Beatriz is correct only in situations in which a student is carried on a parent's insurance policy.F) A) and C)
G) A) and B) A

Question 3

A[n] ________ is a term identifying the person who receives insurance proceeds in the event of injury or damage.

Accepted Answer

A)  Identified
B)  Beneficiary
C)  Obtainer
D)  Insured
E)  ReceiverF) B) and C)
G) A) and E)

Question 4

If the insured or insurer fails to meet an obligation under the insurance contract,what cause of action might the other party have?

Accepted Answer

A)  Breach of duty
B)  Breach of good faith and fair dealing
C)  Breach of warranty
D)  Breach of contract
E)  Breach of implied warrantyF) C) and D)
G) None of the above

Question 5

Insurance is defined as a contract in which the insured party makes payments to the insurer in exchange for the insurer's promise to make payment or transfer goods to another party in the event of injury or destruction to the insured party's property or life.

Accepted Answer

A) True 
 B)False

Question 6

Daria's property is damaged in a fire.She claims the property damage amounted to $10,000,and the insurer claims it only amounted to $5,000.Which of the following is true in this situation?

Accepted Answer

A)  Daria has no alternative because she must accept the insurer's valuation.
B)  Daria should file for a field evaluation.
C)  The insurer is required to accept Daria's valuation unless the insurer can establish that the insured failed to act in good faith.
D)  Daria should demand an appraisal under her policy's appraisal clause.
E)  Daria should call the state inspector who investigates and makes rulings in such cases.F) A) and E)
G) D) and E)

Question 7

The insured and insurer both have obligations under an insurance contract,if either fails to meet their obligation,the other can usually sue for breach of contract.

Accepted Answer

A) True 
 B)False

Question 8

A policy of fidelity insurance is an example of which of the following types of insurance?

Accepted Answer

A)  Profit loss
B)  Business loss
C)  Economy
D)  Commercial
E)  EconomicF) A) and B)
G) A) and E)

Question 9

[Insurance Incident] Ace Photo,a company specializing in wild animal photography,took out a life insurance policy through ABC Insurance on its president,Ringo,and an insurance policy on the company-owned jeep that he drove.Some time later,Ringo got a better offer from Flash Company,another company specializing in the photography of wild animals,and went to work for them.He parted on good terms with Ace Photo,and took the jeep under the mistaken idea that it was part of his severance benefits.Neither of the insurance policies was cancelled by Ace Photo.Unfortunately,while photographing a lion for Flash Company,Ringo was attacked and eaten.His jeep was then stolen by a bystander.Ace Photo had been in the process of contacting Ringo in an attempt to obtain possession of the jeep but had not reacquired it at the time of his death.Ace Photo had renewed the policy on the jeep,reaffirming to the insurer that its purpose was for use by Ace Photo employees because Ace Photo planned to have possession of the vehicle shortly.Ace Photo filed a claim to collect on the life insurance policy and also on the vehicle policy.ABC Insurance denied both claims.
-Which statement is true regarding the contention of ABC Insurance that it is not required to pay to Ace Photo the amount for which Ringo's life was insured?

Accepted Answer

A)  ABC Insurance Company is incorrect because Ace Photo had an economic interest in Ringo based on his possession of the jeep that Ace Photo still owned.
B)  ABC Insurance Company is incorrect only if Ace Photo owed Ringo retirement or some other sort of benefit.
C)  ABC Insurance Company is correct because Ace Photo no longer had an economic interest in Ringo's life.
D)  ABC Insurance Company is incorrect because Ace Photo held an economic interest in Ringo's life at the time the insurance was purchased.
E)  ABC Insurance Company is correct only if Ringo's new employer had purchased life insurance on his life.F) A) and D)
G) D) and E)

Question 10

In insurance law,the insured party is the party who makes a payment to an insurance company,called a premium,in return for insurance coverage.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following was the result on appeal in Equity Fire & Casualty Company v.Laurence Traver,the case in the text in which an insured on a policy of automobile insurance mailed a premium to the insurer,but it did not reach the insurer prior to the expiration date of the policy;and the insurer refused to provide coverage for a motor vehicle accident that occurred after the expiration date of the policy and before the premium was received?

Accepted Answer

A)  The court ruled that under the unique facts of the case,there was acceptance of the renewal offer preventing a lapse of the policy.
B)  The court ruled that coverage was not required under the policy because the insured did not meet his obligation of seeing that the premium amount was received by the insurer in a timely manner.
C)  The court ruled that coverage was required under the policy because of the mailbox rule.
D)  The court ruled that coverage was required because the insured had a grace period of 7 days in order for the payment to arrive.
E)  The court ruled that coverage was not required under the policy because of the mailbox rule.F) None of the above
G) B) and D)

Question 12

________ is a term used to define the payment made by an insured party in exchange for a later payment by an insurer in the event of damage or injury to insured property or person.

Accepted Answer

A)  Assessment
B)  Bill
C)  Requirement
D)  Premium
E)  TagF) None of the above
G) A) and B)

Question 13

Under which of the following circumstances would an insurer pay the beneficiary in the event of the insured's death?

Accepted Answer

A)  War
B)  Execution
C)  Accidental
D)  Suicide
E)  Life insurance policies cover all causes of death.F) C) and E)
G) B) and C) C

Question 14

If insurance covers some type of business risk,the insurance is called ________ insurance.

Accepted Answer

A)  Commercial
B)  Economic
C)  Business loss
D)  Economy
E)  Profit lossF) A) and B)
G) A) and C)

Question 15

The parties express their agreement for insurance in a document called a[n] ________.

Accepted Answer

A)  Policy
B)  Catalog
C)  Notification
D)  Brochure
E)  ApplicationF) A) and E)
G) C) and D)

Question 16

What type of insurance is purchased by neither the insured party nor the insurer?

Accepted Answer

A)  Individual
B)  Casualty
C)  Group
D)  Personal
E)  CommercialF) D) and E)
G) A) and C)

Question 17

Which one of the following is not an example of a type of liability insurance?

Accepted Answer

A)  Product liability
B)  Contractors'
C)  Garage
D)  Weather
E)  ProfessionalF) A) and D)
G) None of the above D

Question 18

If an insurance company wants to cancel a policy,it must provide the insured with a grace period,but it does not have to provide advanced notice.

Accepted Answer

A) True 
 B)False

Question 19

A policy of title insurance is an example of which of the following types of insurance?

Accepted Answer

A)  Profit loss
B)  Business loss
C)  Economic
D)  Commercial
E)  EconomyF) B) and D)
G) A) and E)

Question 20

A workers' compensation insurance policy is an example of which of the following types of insurance?

Accepted Answer

A)  Injury
B)  Business
C)  Casualty
D)  Loss
E)  Economi cF) C) and E)
G) A) and C)

Exam 51: Insurance Law

An insurance policy that covers an individual's life or health is ________ insurance.

Correct Answer
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Regarding Beatriz's assertion that vehicle insurance policies do not generally provide coverage for legal representation,which of the following is true?

Correct Answer
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A

A[n] ________ is a term identifying the person who receives insurance proceeds in the event of injury or damage.

Correct Answer
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If the insured or insurer fails to meet an obligation under the insurance contract,what cause of action might the other party have?

Correct Answer
verified

Insurance is defined as a contract in which the insured party makes payments to the insurer in exchange for the insurer's promise to make payment or transfer goods to another party in the event of injury or destruction to the insured party's property or life.

Correct Answer
verified

Daria's property is damaged in a fire.She claims the property damage amounted to $10,000,and the insurer claims it only amounted to $5,000.Which of the following is true in this situation?

Correct Answer
verified

The insured and insurer both have obligations under an insurance contract,if either fails to meet their obligation,the other can usually sue for breach of contract.

Correct Answer
verified

A policy of fidelity insurance is an example of which of the following types of insurance?

Correct Answer
verified

Correct Answer
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In insurance law,the insured party is the party who makes a payment to an insurance company,called a premium,in return for insurance coverage.

Correct Answer
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Correct Answer
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________ is a term used to define the payment made by an insured party in exchange for a later payment by an insurer in the event of damage or injury to insured property or person.

Correct Answer
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Under which of the following circumstances would an insurer pay the beneficiary in the event of the insured's death?

Correct Answer
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C

If insurance covers some type of business risk,the insurance is called ________ insurance.

Correct Answer
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The parties express their agreement for insurance in a document called a[n] ________.

Correct Answer
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What type of insurance is purchased by neither the insured party nor the insurer?

Correct Answer
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Which one of the following is not an example of a type of liability insurance?

Correct Answer
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D

If an insurance company wants to cancel a policy,it must provide the insured with a grace period,but it does not have to provide advanced notice.

Correct Answer
verified

A policy of title insurance is an example of which of the following types of insurance?

Correct Answer
verified

A workers' compensation insurance policy is an example of which of the following types of insurance?

Correct Answer
verified

Exam 51: Insurance Law

An insurance policy that covers an individual's life or health is ________ insurance.

Correct AnswerverifiedShow Answer

Regarding Beatriz's assertion that vehicle insurance policies do not generally provide coverage for legal representation,which of the following is true?

Correct AnswerverifiedA

A[n] ________ is a term identifying the person who receives insurance proceeds in the event of injury or damage.

Correct AnswerverifiedShow Answer

If the insured or insurer fails to meet an obligation under the insurance contract,what cause of action might the other party have?

Correct AnswerverifiedShow Answer

Insurance is defined as a contract in which the insured party makes payments to the insurer in exchange for the insurer's promise to make payment or transfer goods to another party in the event of injury or destruction to the insured party's property or life.

Correct AnswerverifiedShow Answer

Daria's property is damaged in a fire.She claims the property damage amounted to $10,000,and the insurer claims it only amounted to $5,000.Which of the following is true in this situation?

Correct AnswerverifiedShow Answer

The insured and insurer both have obligations under an insurance contract,if either fails to meet their obligation,the other can usually sue for breach of contract.

Correct AnswerverifiedShow Answer

A policy of fidelity insurance is an example of which of the following types of insurance?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In insurance law,the insured party is the party who makes a payment to an insurance company,called a premium,in return for insurance coverage.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

________ is a term used to define the payment made by an insured party in exchange for a later payment by an insurer in the event of damage or injury to insured property or person.

Correct AnswerverifiedShow Answer

Under which of the following circumstances would an insurer pay the beneficiary in the event of the insured's death?

Correct AnswerverifiedC

If insurance covers some type of business risk,the insurance is called ________ insurance.

Correct AnswerverifiedShow Answer

The parties express their agreement for insurance in a document called a[n] ________.

Correct AnswerverifiedShow Answer

What type of insurance is purchased by neither the insured party nor the insurer?

Correct AnswerverifiedShow Answer

Which one of the following is not an example of a type of liability insurance?

Correct AnswerverifiedD

If an insurance company wants to cancel a policy,it must provide the insured with a grace period,but it does not have to provide advanced notice.

Correct AnswerverifiedShow Answer

A policy of title insurance is an example of which of the following types of insurance?

Correct AnswerverifiedShow Answer

A workers' compensation insurance policy is an example of which of the following types of insurance?

Correct AnswerverifiedShow Answer

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A

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C

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D

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