Question 1

What type of insurance policies cover attacks by hackers,software coding,and human errors?

Accepted Answer

A)  Cyber and security policies
B)  Security and data privacy policies
C)  Data privacy and hack prevention policies
D)  Hack prevention and cyber policies
E)  Cyber and data privacy policiesF) B) and C)
G) A) and E)

Question 2

An individual would purchase ________ insurance to protect his or her business from tort liability to third parties.

Accepted Answer

A)  Liability
B)  Litigation
C)  Tort
D)  Group
E)  PropertyF) A) and B)
G) A) and D)

Question 3

If an insured fails to cooperate with the insurer when making a claim,the insurer is not required to pay on the claim.

Accepted Answer

A) True 
 B)False

Question 4

Which term refers to the potential for loss in an insurance agreement?

Accepted Answer

A)  Distribution
B)  Risk
C)  Outlay
D)  Loss
E)  PremiumF) All of the above
G) A) and B)

Question 5

When does a person have an insurable interest in property?

Accepted Answer

A)  When the person has sentimental value,regardless of the property's actual value.
B)  When the person can prove he or she has full legal ownership of the property.
C)  When the person has paid fair market value for the property.
D)  When the person has paid off any loans attached to the property.
E)  When the person derives a financial benefit from its continued use.F) C) and D)
G) A) and B)

Question 6

[Information Issues] Nari bought a sporty,yellow convertible.She had a teenage son at home,Joon,but she did not plan to let him drive the new car because he had driven her last car into the lake.Embarrassed,Nari decided to change insurers.She went to Big Insurance Company to apply.She got an application from Mark,an agent.Nari was a little nervous because the application asked about other drivers in the home.It also asked if there were any teenagers in the home.Nari decided to answer "no" on both counts because she had no plans to let Joon drive.Nari got full coverage on the car,and the policy was issued shortly after she completed the application.One year later,she renewed the policy without revising any of the information she provided.One month after she renewed the policy,Nari really needed some gas in the car for the next day,but she was unable to go to the gas station.Under the belief that he had sufficiently matured,Nari sent Joon to get gas.Unfortunately,a driver who had no insurance hit the car and totaled it.Luckily,Joon was okay. ) Nari immediately called her agent,Mark.When Mark reviewed the police report,however,he told Nari that there would be no coverage on the car because Joon was driving.Nari said that was completely unfair and that she would take her case to court to be decided by a jury.Nari told Mark that Big Insurance Co.issued the policy and that she was relying on the incontestability clause.Mark told Nari that she was wrong and that based on how disputes were handled under the policy,she would not even see a jury.
-Regarding Mark's statement that Nari would never see a jury,which of the following is true?

Accepted Answer

A)  Mark is correct based on provisions in most policies providing that the insurance company has the final word regarding coverage.
B)  Mark is likely referencing a provision requiring that any dispute be settled by the Insurance Adjustors of America contained in some policies.
C)  Mark is incorrect,and insurers may not require as a condition of a policy that an insured give up the right to a trial by jury.
D)  Mark is likely referencing a provision requiring arbitration contained in some policies.
E)  Mark is correct based on provisions in most policies denying the insured the right to contest policy provisions.F) B) and D)
G) A) and B)

Question 7

________ suggests people who are insulated from risk sometimes behave differently

Accepted Answer

A)  Coverage protection
B)  Strict liability
C)  Moral hazard
D)  Coverage insulation
E)  NegligenceF) A) and B)
G) A) and C)

Question 8

Which of the following types of insurance protects members of specific professions from liability associated with their professional acts?

Accepted Answer

A)  Business liability
B)  Trained liability
C)  Licensed
D)  Consumer
E)  Professional liabilityF) C) and E)
G) A) and B)

Question 9

Which of the following is false regarding insurance and the international sale of goods?

Accepted Answer

A)  Today,manufacturers are likely to have an insurance company in every country to which they ship goods.
B)  A manufacturers in Germany,for example,could seek insurance through a German insurance company regardless of where its products are shipped.
C)  Manufacturers typically have insurance only in their home country because,under international law,the home country's law would be applied in the event of disputes.
D)  Product liability awards may vary in amount from country to country.
E)  Complications may arise from having insurance companies in several different countries.F) A) and B)
G) A) and C)

Question 10

If the insured misrepresented his or her health on the insurance application,what is the result when the insured dies and his or her beneficiary seeks payment?

Accepted Answer

A)  The beneficiary will receive the full amount of payment.
B)  The beneficiary will not receive payment because the policy is void.
C)  The beneficiary will receive an adjusted payment to reflect the insurer's damages.
D)  The beneficiary will receive an adjusted payment to reflect premiums for the correct health.
E)  The beneficiary will not receive payment because the insured breached the contract.F) None of the above
G) B) and E)

Question 11

Which of the following is true regarding whether the insureds in the "Case Opener" were entitled to insurance coverage for imported toxic Chinese drywall used in their home?

Accepted Answer

A)  The court ruled that the insureds were entitled to coverage for personal injuries because of their insurance company's warranties,but not coverage for property damage.
B)  The court ruled that the insureds were entitled to property damage coverage because of their insurance company's warranties,but not coverage for personal injuries.
C)  The court ruled that the insureds were entitled to coverage for both property damage and personal injury based on their insurance company's warranties.
D)  The court ruled that the insureds were not entitled to coverage.
E)  The court ruled that the insureds were entitled to full coverage only if they could establish that the insurer knew of the drywall problems when it issued the policy.F) D) and E)
G) C) and D)

Question 12

If a person has an insurable interest in property,which of the following is required for the person to collect the beneficiary payment when there is a loss?

Accepted Answer

A)  The person must make a claim to the insurer within 14 days of the loss.
B)  The person must make a claim to the insurer within 30 days of the loss.
C)  The person must have had an interest in the property at the time of the loss.
D)  The person must have had an interest in the property at anytime during coverage.
E)  The person must have had an interest in the property before the loss.F) A) and E)
G) C) and D)

Question 13

A[n] is an agreement between an applicant and an insurance company that gives temporary insurance until the company decides to accept or reject the insurance application.

Accepted Answer

A)  Binder
B)  Approval
C)  Notarization
D)  Anticipatory agreement
E)  ApplicationF) A) and E)
G) C) and D)

Question 14

The transfer and distribution of risk done by an insurer is known as ________.

Accepted Answer

A)  Insured protection
B)  Risk management
C)  Insurance management
D)  Casualty management
E)  Spread protectionF) A) and C)
G) A) and B)

Question 15

Which statement is false regarding marine insurance in Scotland?

Accepted Answer

A)  Marine insurance policies cover most marine activities including liability to third parties in the event of difficulties while at sea.
B)  Marine insurance policies tend to be exacting.
C)  Before an insurer will sign a policy,the value of the item insured must be specified in the contract.
D)  Scotland has a Marine Insurance Act in its mercantile law that addresses insurance contracts.
E)  Marine insurance policies are among the most simple and easy to understand insurance policies.F) A) and E)
G) A) and C)

Question 16

Arbitration clauses are illegal in policies of insurance,as a matter of federal law.

Accepted Answer

A) True 
 B)False

Question 17

If the insured misrepresented his or her age on the insurance application,what is the result when the insured dies and his or her beneficiary seeks payment?

Accepted Answer

A)  The beneficiary will not receive payment because the policy is void.
B)  The beneficiary will receive an adjusted payment to reflect the insurer's damages.
C)  The beneficiary will not receive payment because the insured breached the contract.
D)  The beneficiary will receive the full amount of payment.
E)  The beneficiary will receive an adjusted payment to reflect premiums for the correct ageF) A) and B)
G) B) and C)

Question 18

The ________ is the term used for the date an insurance policy begins coverage.

Accepted Answer

A)  Application date
B)  Acceptance date
C)  Effective date
D)  Insured date
E)  Covered dateF) A) and B)
G) B) and E)

Question 19

A commercial general liability policy provides protection against intentional wrongful acts committed by an insured.

Accepted Answer

A) True 
 B)False

Question 20

The beneficiary is another name for the insured in an insurance contract.

Accepted Answer

A) True 
 B)False

Exam 51: Insurance Law

Which of the following is false regarding insurance and the international sale of goods?

Correct Answer
verified

The transfer and distribution of risk done by an insurer is known as ________.

Correct Answer
verified

Correct Answer
verified

If the insured misrepresented his or her age on the insurance application,what is the result when the insured dies and his or her beneficiary seeks payment?

Correct Answer
verified

If the insured misrepresented his or her health on the insurance application,what is the result when the insured dies and his or her beneficiary seeks payment?

Correct Answer
verified

Arbitration clauses are illegal in policies of insurance,as a matter of federal law.

Correct Answer
verified

Which term refers to the potential for loss in an insurance agreement?

Correct Answer
verified

If a person has an insurable interest in property,which of the following is required for the person to collect the beneficiary payment when there is a loss?

Correct Answer
verified

The beneficiary is another name for the insured in an insurance contract.

Correct Answer
verified

What type of insurance policies cover attacks by hackers,software coding,and human errors?

Correct Answer
verified

________ suggests people who are insulated from risk sometimes behave differently

Correct Answer
verified

The ________ is the term used for the date an insurance policy begins coverage.

Correct Answer
verified

Which of the following types of insurance protects members of specific professions from liability associated with their professional acts?

Correct Answer
verified

When does a person have an insurable interest in property?

Correct Answer
verified

Which statement is false regarding marine insurance in Scotland?

Correct Answer
verified

A[n] is an agreement between an applicant and an insurance company that gives temporary insurance until the company decides to accept or reject the insurance application.

Correct Answer
verified

If an insured fails to cooperate with the insurer when making a claim,the insurer is not required to pay on the claim.

Correct Answer
verified

An individual would purchase ________ insurance to protect his or her business from tort liability to third parties.

Correct Answer
verified

A commercial general liability policy provides protection against intentional wrongful acts committed by an insured.

Correct Answer
verified

Which of the following is true regarding whether the insureds in the "Case Opener" were entitled to insurance coverage for imported toxic Chinese drywall used in their home?

Correct Answer
verified

Exam 51: Insurance Law

Which of the following is false regarding insurance and the international sale of goods?

Correct AnswerverifiedShow Answer

The transfer and distribution of risk done by an insurer is known as ________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If the insured misrepresented his or her age on the insurance application,what is the result when the insured dies and his or her beneficiary seeks payment?

Correct AnswerverifiedShow Answer

If the insured misrepresented his or her health on the insurance application,what is the result when the insured dies and his or her beneficiary seeks payment?

Correct AnswerverifiedShow Answer

Arbitration clauses are illegal in policies of insurance,as a matter of federal law.

Correct AnswerverifiedShow Answer

Which term refers to the potential for loss in an insurance agreement?

Correct AnswerverifiedShow Answer

If a person has an insurable interest in property,which of the following is required for the person to collect the beneficiary payment when there is a loss?

Correct AnswerverifiedShow Answer

The beneficiary is another name for the insured in an insurance contract.

Correct AnswerverifiedShow Answer

What type of insurance policies cover attacks by hackers,software coding,and human errors?

Correct AnswerverifiedShow Answer

________ suggests people who are insulated from risk sometimes behave differently

Correct AnswerverifiedShow Answer

The ________ is the term used for the date an insurance policy begins coverage.

Correct AnswerverifiedShow Answer

Which of the following types of insurance protects members of specific professions from liability associated with their professional acts?

Correct AnswerverifiedShow Answer

When does a person have an insurable interest in property?

Correct AnswerverifiedShow Answer

Which statement is false regarding marine insurance in Scotland?

Correct AnswerverifiedShow Answer

A[n] is an agreement between an applicant and an insurance company that gives temporary insurance until the company decides to accept or reject the insurance application.

Correct AnswerverifiedShow Answer

If an insured fails to cooperate with the insurer when making a claim,the insurer is not required to pay on the claim.

Correct AnswerverifiedShow Answer

An individual would purchase ________ insurance to protect his or her business from tort liability to third parties.

Correct AnswerverifiedShow Answer

A commercial general liability policy provides protection against intentional wrongful acts committed by an insured.

Correct AnswerverifiedShow Answer

Which of the following is true regarding whether the insureds in the "Case Opener" were entitled to insurance coverage for imported toxic Chinese drywall used in their home?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified