FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 19: Insurance

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

True/False

Review LaterAdd Note

Review Later

If an insured person becomes disabled, he or she will be excused from paying premiums if he or she has purchased a waiver of premium option.

A) True
B) False

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

Faith owes $50,000 to Investment Lenders, Inc., a partnership of Cindy and Ryan. She is also a partner with Tom in a business venture. What insurable interests exist in this situation?

A) Faith has an insurable interest in the lives of Cindy and Ryan.
B) Investment Lenders, Inc. has an insurable interest in Tom, but does not have an insurable interest in Faith.
C) Only Tom and Faith have insurable interests.
D) Tom and Faith have insurable interests in each other's lives and Investment Lenders, Inc. has an insurable interest in Faith.

E) B) and C)
F) A) and D)

Correct Answer

verified

Show Answer

Question 33

True/False

Review LaterAdd Note

During inflationary times, when bank interest rates are high, insurance policies are usually poor sources for loans at low interest rates.

A(n) ____________ is an amount of any loss that is to be paid by the insured and can be a specified dollar amount, a percentage of the claim amount, or a specified amount of time that must elapse before benefits are paid.

Universal life insurance allows the policy owner to modify the:

Insurance transfers the risk of economic loss from the insured to the insurance company.

Juanita's grandfather loans valuable artwork to the Art Museum on the condition that the same will go to Juanita if the museum closes. She wants to purchase property insurance on the art work because she feels that it would be a great loss if any mishap occurs. Discuss the legal implications of this situation.

Grant, a construction worker, purchased a double indemnity option from his life insurance company. Several years later, Grant was seriously injured in a construction accident. Four months after the accident, Grant died as a result of the bodily injuries he sustained in that accident. When Grant's wife, the beneficiary, attempted to collect double the amount of the policy, the insurer informed her that she was only entitled to the original amount of coverage. Analyze the case.

Lucia had a homeowner's insurance policy on her house. While she was away on vacation, her porch got burned to the ground. After the fire, her house was burglarized and goods worth thousands of dollars were stolen from it. When Lucia arrived home, she called the police. While a police officer was interviewing her in her dining room, a chandelier fell on him and knocked him unconscious. Which losses will Lucia's homeowner's policy cover?

Which of the following is true of coinsurance?