Deck 36: Types of Insurance

Question 1

The grace period refers to the period of time in which an insurance company may investigate a death before paying the face.

Answer 1

False

Question 2

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

Answer 2

False

Question 3

Which of the following is a double indemnity rider?

A)A policy requiring an insurer 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

Answer 3

A

Question 4

The maximum amount paid for total loss of property is the face of the policy or the value of the property

A)not affected by
B)equal to the average of
C)the greater of
D)the lesser of

Question 5

Floating policies are used to cover circus paraphernalia.

Question 6

What is renewable about renewable term insurance?

A)the policy may be renewed or transferred to the life of family member
B)the premium, because it is guaranteed never to increase
C)the policy may be transferred to another company
D)the term of the policy may be extended without a physical examination

Question 7

Bodily injury insurance does not cover any injury to the person or property of the insured.

Question 8

A term insurance policy is one where the company assumes, for a specified period of time, the risk of the death of the insured.

Question 9

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 10

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 11

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

Question 12

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

Question 13

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

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 14

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

Question 15

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.

Question 16

How does a deductible affect the amount an insurance company must pay?

A)not at all; the deductible is a matter between two insureds
B)the insurance company pays the loss less the deductible
C)the amount of the deductible is added to the loss amount
D)the deductible is added to the annual cost of premiums

Question 17

A general description is sufficient for establishing the value of items insured by property insurance.

Question 18

If the insured dies with an endowment insurance contract, the beneficiary will collect only a portion of the face value of the contract.

Question 19

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

Question 20

Explain the last chance clear rule. ​