Question 1

For the insurance to be valid,the required insurable interest in life insurance contracts must exist:

Accepted Answer

A)   before the loss occurs.
B)   at the time the loss occurs.
C)   at the time the policy was issued.
D)   throughout the term of the policy.E) C) and D)
F) None of the above

Question 2

In whole life insurance contracts,the _____.

Accepted Answer

A)   rate of the premiums to be paid decreases if the face value increases
B)   loan value decreases as the age of the policy increases
C)   insurer pays the face value of the policy on the death of the insured
D)   loan value developed by the contract enables the insurer to borrow money from the insuredE) B) and C)
F) C) and D)

Question 3

Homeowners' insurance policies:

Accepted Answer

A)   often provide coverage under their comprehensive and collision sections for car damages resulting from vandalism.
B)   insure both the insured's dwelling and the personal property located on the real property.
C)   do not cover personal property that was temporarily removed from the dwelling at the time it was damaged.
D)   do not allow property owners to purchase specialized policies to make up for gaps in a standard insurance contract.E) B) and C)
F) A) and D)

Question 4

The "incontestability clause" found in life insurance policies:

Accepted Answer

A)   bars the insurer from objecting on the basis of the purchase of the policy with the intent to murder the insured.
B)   allows the insurer to contest its liability on the policy only if the policy has been in force for a specified period of time.
C)   bars an insured from reinstating a lapsed policy that has not been surrendered for its cash surrender value.
D)   allows the insurer to object on the basis of absence of insurable interest.E) C) and D)
F) A) and B)

Question 5

A person who seeks to recover benefits under a life insurance policy:

Accepted Answer

A)   must notify the insured before a loss is likely to happen.
B)   needs to furnish a sworn statement of loss.
C)   needs to furnish proof of third party witness to the loss.
D)   must notify the insurer of the loss and furnish proof of loss.E) All of the above
F) A) and B)

Question 6

Which of the following is most likely to be non-claimable under property insurance contracts?

Accepted Answer

A)   Overflows from burst pipes
B)   Loss from vandalism
C)   Loss from hostile fire
D)   Nuclear contaminationE) B) and D)
F) A) and B)

Question 7

As a general rule,contracts are assignable:

Accepted Answer

A)   even if the policy's terms limit assignability.
B)   if they are not life insurance policies.
C)   even without a designated beneficiary's consent.
D)   if they are not property insurance policies.E) A) and C)
F) All of the above

Question 8

An insurance policy taken out by a minor is not voidable at the election of the minor.

Accepted Answer

A) True 
 B)False

Question 9

Insurance companies must wait until litigation has been concluded to satisfy their duty to pay.

Accepted Answer

A) True 
 B)False

Question 10

To be able to claim loss,those who have an insurable interest in property must have that interest:

Accepted Answer

A)   before the loss occurs.
B)   at the time the loss occurs.
C)   at the time the policy was issued.
D)   throughout the term of the policy.E) A) and D)
F) A) and C)

Exam 37: Insurance-Part Seven Commercial Paper

To be able to claim loss,those who have an insurable interest in property must have that interest:

Correct Answer
verified

Insurance companies must wait until litigation has been concluded to satisfy their duty to pay.

Correct Answer
verified

Which of the following is most likely to be non-claimable under property insurance contracts?

Correct Answer
verified

In whole life insurance contracts,the _____.

Correct Answer
verified

A person who seeks to recover benefits under a life insurance policy:

Correct Answer
verified

As a general rule,contracts are assignable:

Correct Answer
verified

An insurance policy taken out by a minor is not voidable at the election of the minor.

Correct Answer
verified

Homeowners' insurance policies:

Correct Answer
verified

The "incontestability clause" found in life insurance policies:

Correct Answer
verified

For the insurance to be valid,the required insurable interest in life insurance contracts must exist:

Correct Answer
verified

Exam 37: Insurance-Part Seven Commercial Paper

To be able to claim loss,those who have an insurable interest in property must have that interest:

Correct AnswerverifiedShow Answer

Insurance companies must wait until litigation has been concluded to satisfy their duty to pay.

Correct AnswerverifiedShow Answer

Which of the following is most likely to be non-claimable under property insurance contracts?

Correct AnswerverifiedShow Answer

In whole life insurance contracts,the _____.

Correct AnswerverifiedShow Answer

A person who seeks to recover benefits under a life insurance policy:

Correct AnswerverifiedShow Answer

As a general rule,contracts are assignable:

Correct AnswerverifiedShow Answer

An insurance policy taken out by a minor is not voidable at the election of the minor.

Correct AnswerverifiedShow Answer

Homeowners' insurance policies:

Correct AnswerverifiedShow Answer

The "incontestability clause" found in life insurance policies:

Correct AnswerverifiedShow Answer

For the insurance to be valid,the required insurable interest in life insurance contracts must exist:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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