Question 1

Group insurance provides individual coverage obtainable by persons who are members of certain groups.

Accepted Answer

A) True 
 B)False

Question 2

Courts interpret the words used in an insurance contract as if most people have the special training necessary to understand the intricate terminology.

Accepted Answer

A) True 
 B)False

Question 3

Rick obtains an insurance policy from Stable Insurance Inc. The policy provides that on Rick's death Stable will pay $500,000 to Taylor, the beneficiary. This is

Accepted Answer

A)   health insurance.
B)   key-person insurance .
C)   life insurance.
D)   disability insurance.E) A) and C)
F) B) and C)

Question 4

Actions that are against public policy can give the insurance company a defense against the payment of a claim.

Accepted Answer

A) True 
 B)False

Question 5

Gil obtains from Health Insurance Company a policy that provides that Gil has thirty days after a premium's due date to pay it before the policy will be canceled. This is

Accepted Answer

A)   an arbitration insurance clause.
B)   an antilapse clause.
C)   an appraisal clause.
D)   an incontestability clause.E) C) and D)
F) All of the above B

Question 6

A state statute usually requires that the insurer give advance written notice of the cancellation of a policy to the insured.

Accepted Answer

A) True 
 B)False

Question 7

Insurance is an arrangement for transferring and allocating risk.

Accepted Answer

A) True 
 B)False

Question 8

A filled-in application for insurance is usually attached to the policy and made of the insurance contract.

Accepted Answer

A) True 
 B)False

Question 9

Multi-Enterprise Corporation offers its employees, as an employment benefit, individual medical insurance coverage. This is

Accepted Answer

A)   liability insurance.
B)   disability insurance.
C)   group insurance.
D)   key-person insurance.E) A) and B)
F) A) and C)

Question 10

Anne obtains a liability insurance policy for her Bagels & Coffee Shop from Choice Insurance Company. In their dealings, both parties must

Accepted Answer

A)   be open and honest .
B)   attempt to deny or reduce any claim.
C)   prevent the other from asserting certain defenses.
D)   have an insurable interest.E) B) and C)
F) A) and D)

Question 11

Cutting Edge Corporation makes and sells knives, scissors, garden shears, and other cutting devices. To cover injuries to consumers if the products prove defective, Cutting Edge should obtain

Accepted Answer

A)   group insurance.
B)   key-person insurance.
C)   liability insurance.
D)   life insurance.E) C) and D)
F) B) and D)

Question 12

Jason wants to insure himself against injuries and damage resulting from the operation of his taxi that he owns. Jason should obtain

Accepted Answer

A)   automobile insurance.
B)   disability insurance.
C)   group insurance.
D)   life insurance.E) A) and D)
F) B) and D)

Question 13

Misstatements in an insurance application can void a policy.

Accepted Answer

A) True 
 B)False  True

Question 14

The insurer can cancel a policy only under certain circumstances.

Accepted Answer

A) True 
 B)False

Question 15

Insurance policies differ in relation to the persons and interests that they protect.

Accepted Answer

A) True 
 B)False

Question 16

An insurance contract is called a premium .

Accepted Answer

A) True 
 B)False

Question 17

Dyan and Ed are partners who own and operate Footlong's, a chain of hot-dog stands. Their partnership obtains insurance on their lives. This is

Accepted Answer

A)   disability insurance.
B)   death insurance.
C)   key-person insurance.
D)   liability insurance.E) A) and B)
F) A) and C) C

Question 18

Roma obtains a fire insurance policy on her house with Safe-wise Insurance Company. This policy is an arrangement best described as

Accepted Answer

A)   avoiding the assumption of responsibility.
B)   predicting a potential loss based on unknown factors .
C)   shifting the imposition of liability.
D)   transferring and allocating risk.E) B) and D)
F) None of the above

Question 19

In some instances, the insurance applicant is not protected until a formal written policy is issued.

Accepted Answer

A) True 
 B)False

Question 20

When a broker deals with an applicant for insurance, the broker is the applicant's agent.

Accepted Answer

A) True 
 B)False

Exam 35: Insurance

Group insurance provides individual coverage obtainable by persons who are members of certain groups.

Correct AnswerverifiedShow Answer

Courts interpret the words used in an insurance contract as if most people have the special training necessary to understand the intricate terminology.

Correct AnswerverifiedShow Answer

Rick obtains an insurance policy from Stable Insurance Inc. The policy provides that on Rick's death Stable will pay $500,000 to Taylor, the beneficiary. This is

Correct AnswerverifiedShow Answer

Actions that are against public policy can give the insurance company a defense against the payment of a claim.

Correct AnswerverifiedShow Answer

Gil obtains from Health Insurance Company a policy that provides that Gil has thirty days after a premium's due date to pay it before the policy will be canceled. This is

Correct AnswerverifiedB

A state statute usually requires that the insurer give advance written notice of the cancellation of a policy to the insured.

Correct AnswerverifiedShow Answer

Insurance is an arrangement for transferring and allocating risk.

Correct AnswerverifiedShow Answer

A filled-in application for insurance is usually attached to the policy and made of the insurance contract.

Correct AnswerverifiedShow Answer

Multi-Enterprise Corporation offers its employees, as an employment benefit, individual medical insurance coverage. This is

Correct AnswerverifiedShow Answer

Anne obtains a liability insurance policy for her Bagels & Coffee Shop from Choice Insurance Company. In their dealings, both parties must

Correct AnswerverifiedShow Answer

Cutting Edge Corporation makes and sells knives, scissors, garden shears, and other cutting devices. To cover injuries to consumers if the products prove defective, Cutting Edge should obtain

Correct AnswerverifiedShow Answer

Jason wants to insure himself against injuries and damage resulting from the operation of his taxi that he owns. Jason should obtain

Correct AnswerverifiedShow Answer

Misstatements in an insurance application can void a policy.

Correct AnswerverifiedTrue

The insurer can cancel a policy only under certain circumstances.

Correct AnswerverifiedShow Answer

Insurance policies differ in relation to the persons and interests that they protect.

Correct AnswerverifiedShow Answer

An insurance contract is called a premium .

Correct AnswerverifiedShow Answer

Dyan and Ed are partners who own and operate Footlong's, a chain of hot-dog stands. Their partnership obtains insurance on their lives. This is

Correct AnswerverifiedC

Roma obtains a fire insurance policy on her house with Safe-wise Insurance Company. This policy is an arrangement best described as

Correct AnswerverifiedShow Answer

In some instances, the insurance applicant is not protected until a formal written policy is issued.

Correct AnswerverifiedShow Answer

When a broker deals with an applicant for insurance, the broker is the applicant's agent.

Correct AnswerverifiedShow Answer

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B

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True

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C

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