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| 1 | |
__________ hazard suggests that individuals who are insulated from risk sometimes behave differently. |
| | A) | Assessment |
| | B) | Insulated |
| | C) | Moral |
| | D) | Assumable |
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| 2 | |
A person who has an interest in property or life has a(n) __________ interest in this property or life. |
| | A) | Calculable |
| | B) | Determinate |
| | C) | Insurable |
| | D) | Assumable |
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| 3 | |
If an insurable interest is in a life, the interest must exist __________. |
| | A) | In perpetuity |
| | B) | At the time the policy is obtained |
| | C) | At the time of the loss |
| | D) | At a future time, subject to agreement between the insurer, the insured, and the named beneficiary |
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| 4 | |
If an insurable interest is in property, the interest must exist __________. |
| | A) | In perpetuity |
| | B) | At the time the policy is obtained |
| | C) | At the time of the loss |
| | D) | At a future time, subject to agreement between the insurer and the insured |
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| 5 | |
A(n) __________ is an agreement that gives temporary insurance until the insurance company decides to accept or reject the insurance application. |
| | A) | Binder |
| | B) | Assurance |
| | C) | Addendum |
| | D) | Conditional certification |
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| 6 | |
If an insurance company creates a confusing policy/policy provision, courts will generally: |
| | A) | Void the policy |
| | B) | Declare the policy voidable, at the election of the insurance company |
| | C) | Declare the policy voidable, at the election of the beneficiary |
| | D) | Find in favor of the insured |
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| 7 | |
A(n) __________ clause states that after an insurance policy has existed for a specified period of time, the insurance company cannot contest any statements made in the insurance application. |
| | A) | Prima facie |
| | B) | Contestability |
| | C) | Incontestability |
| | D) | Acceleration |
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| 8 | |
A(n) __________ clause states that the insured has a grace period (typically thirty days) in which to make an overdue payment. |
| | A) | Anti-lapse |
| | B) | Anti-payment |
| | C) | Acceleration |
| | D) | Deceleration |
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| 9 | |
If the primary purpose of the insurance is to protect a person or property from accidental injury, the insurance is known as __________ insurance. |
| | A) | Indemnity |
| | B) | Double Indemnity |
| | C) | Casualty |
| | D) | "Act of God" |
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| 10 | |
__________-life insurance usually has no cash-surrender value or loan opportunities, although it often has a guaranteed renewability clause, which permits renewal regardless of the health of the insured. |
| | A) | Conditional |
| | B) | Term |
| | C) | Whole |
| | D) | Comprehensive |
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