Deck 38: Types of Insurance

Question 1

If a member of the armed forces possessing a life insurance dies a natural death, the company can refuse to pay.

Answer 1

False

Question 2

Which of the following is true of life insurance contracts?

A) Life insurance contracts are commonly not claimable for cases of suicide.
B) Life insurance contracts are not applicable for minors.
C) Life insurance contracts do not include endowment contracts.
D) Life insurance contracts are not applicable for people over the age of 60.

Answer 2

A

Question 3

Endowment insurance contracts are those whereby the company assumes, for a specified period of time, the risk of the death of the insured.

Answer 3

False

Question 4

Conversion is taking another's property without the owner's consent, with the intent to wrongfully deprive the owner of the property.

Question 5

A property insurance policy which states just the maximum amount that will be paid by the insurer for any property is known a(n) _____.

A) named peril policy
B) valued policy
C) open policy
D) floating policy

Question 6

Life insurance is a contract by which the insurer agrees to pay a beneficiary a specified sum upon the death of the insured.

Question 7

Explain the last chance clear rule.

Question 8

_____ contracts are those whereby the company assumes, for a specified period of time, the risk of the death of the insured.

A) Endowment insurance
B) Savings insurance
C) Grace insurance
D) Term insurance

Question 9

Which of the following is a double indemnity rider?

A) A policy requiring an insured to pay twice the amount of face in the case of accidental death
B) A policy requiring an insurer to pay twice the ordinary amount in the case of death by  suicide
C) A policy requiring an insured to pay twice the amount of face in the case of death by war activity
D) A policy requiring an insurer to pay twice the ordinary amount in the case of death by natural causes

Question 10

Scorching and searing from a friendly fire are covered under a fire insurance policy.

Question 11

When an insurance company declines to provide an individual with a poor driving record with automobile insurance:

A) the driver is liable to remain without insurance.
B) the driver can obtain a policy through a state agency.
C) the driver must accept a policy with no third-party coverage.
D) the driver is excluded from the "assigned risk" rule.

Question 12

Which of the following is covered under collision automobile insurance for a car?

A) Unintentionally crashing the car while hauling a horse trailer
B) Crashing a car in the sidewalk while being in an drunk state
C) Damage to the car caused by a donkey kicking the door
D) Windshield damage as a result of a hailstorm

Question 13

Floating policies are used to cover circus paraphernalia.

Question 14

An insurance policy designed to protect only third persons from bodily injury and property damage is known as a _____.

A) floating insurance
B) public liability insurance
C) deductible clause insurance
D) comprehensive policy

Question 15

Which of the following is covered under a fire insurance policy without any extended coverage?

A) A fire caused by extreme heat in desert areas
B) A fire caused by an electrical fault in a factory
C) Smoke arising out of a singed electrical circuit
D) Smoke damage as a result of excessively overcooked food

Question 16

A contract of property insurance is one of compensation for loss that protects the policyholder from actual loss.

Question 17

The law requires life insurance companies to provide a grace period of 60 days in every life insurance policy.

Question 18

A comprehensive policy covers only the hazards enumerated in the policy.

Question 19

A term insurance policy is decreasing-term insurance plus a savings account.

Question 20

Collision occurs when the colliding object consists of a natural phenomenon, such as rain.