Question 1

The premium in an insurance contract is the

Accepted Answer

The premium in an insurance contract is the consideration paid to the insurer by the insured for the coverage provided under the terms of the insurance policy.

Question 2

In insurance law, a(n)_____ is a contract for insurance coverage. It spells out the precise terms and conditions as to what will and will not be covered under the contract.

Accepted Answer

A policy in insurance law is the correct term for a contract that outlines the terms, conditions, and scope of coverage provided by the insurer to the insured.

Question 3

In most states, statutes mandate that leases exceeding ______in duration must be in writing.

Accepted Answer

In most states, statutes following the Statute of Frauds require that leases exceeding one year in duration must be in writing to be enforceable. This is to ensure clarity and proof of the agreement's terms.

Question 4

Contracts for the sale of real estate must be in writing as required by

Accepted Answer

The Statute of Frauds requires certain contracts, including those for the sale of real estate, to be in writing to be enforceable. This legal principle is aimed at preventing fraud and misunderstandings in significant agreements.

Question 5

In insurance law, the______ is the one assuming a risk in return for the payment of a premium.

Accepted Answer

The underwriter is the party in insurance law that assumes the risk in return for the payment of a premium. They assess the risk associated with an insurance policy and decide whether to accept it.

Question 6

Without_____ , there can be no enforceable insurance contract.

Accepted Answer

An insurable interest is required for an insurance contract to be legally enforceable. This means the policyholder must stand to suffer a financial loss or certain types of non-financial losses if the insured event occurs. Without an insurable interest, the contract could be considered a wagering contract and thus unenforceable.

Question 7

Under the Statute of Frauds, leases

Accepted Answer

The Statute of Frauds requires certain contracts to be in writing to be enforceable, including leases that exceed one year's duration.

Question 8

In a lease agreement, the property owner is referred to as the

Accepted Answer

The property owner in a lease agreement is referred to as the lessor, as they are the party leasing the property to another, known as the lessee.

Question 9

A survey that locates all physical improvements on the land in relation to the boundary lines of the land is an_______ survey.

Accepted Answer

An "as built" survey is used to locate all physical improvements on the land in relation to its boundary lines, documenting the conditions as they exist after the construction or development.

Question 10

In insurance law, the_____ is the price paid by the insured for insurance protection for a specified period of time.

Accepted Answer

The premium is the term used to describe the price paid by the insured to the insurance company for insurance protection for a specified period of time.

Question 11

Which of the following is not a typical provision in a real estate sales agreement?

Accepted Answer

Rental amount is not typically included in a real estate sales agreement, as these agreements are concerned with the sale and transfer of property ownership, not rental terms.

Question 12

A written temporary insurance policy is called a

Accepted Answer

A binder is a temporary insurance contract that provides proof of coverage until a permanent policy is issued.

Question 13

A prediction concerning potential loss based on known and unknown factors is

Accepted Answer

Risk refers to the prediction concerning potential loss based on known and unknown factors. It encompasses the uncertainty regarding financial, physical, or other types of loss.

Question 14

Which of the following is an example of shared-property ownership?

Accepted Answer

Tenancy by the entirety is a form of shared-property ownership specifically designed for married couples, where each spouse has an equal and undivided interest in the property.

Question 15

In a lease agreement, the party leasing the property is referred to as the

Accepted Answer

The party leasing the property is referred to as the lessee, which means they are the ones who obtain the right to use the property under the terms of the lease.

Question 16

______is the planning that is undertaken to reduce the risk of loss from known and unknown events. In the context of insurance, it involves transferring certain risks from the insured to the insurance company.

Accepted Answer

Risk management is the process of identifying, assessing, and prioritizing risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities. In the context of insurance, it often involves transferring certain risks from the insured to the insurer, making it the correct choice.

Question 17

Which of the following is not a typical lease term?

Accepted Answer

Purchase price is not a typical lease term because a lease agreement involves renting property, not purchasing it. The purchase price would be relevant in a sales contract, not a lease agreement.

Question 18

Insurance contracts can usually be obtained through which of the following?

Accepted Answer

Insurance contracts can typically be obtained through both an insurance company agent, who represents a specific insurance company, and a broker, who represents the insurance buyer and can shop around for the best policy from multiple insurance companies.

Question 19

The one who assumes a risk in return for payment of a premium is the

Accepted Answer

The insurer is the entity that assumes the risk in return for the payment of a premium, providing financial protection or reimbursement to the insured against losses.

Question 20

______is a prediction concerning potential loss based on known and unknown factors.

Accepted Answer

Risk is defined as a prediction concerning potential loss based on known and unknown factors. It encompasses the possibility of facing harm or loss when a threat is encountered.

Quiz 16: Real Property and Insurance Law