Ch38 Types of Insurance Flashcards
Contract that pays monthly income to insured while alive
Annuity Insurance
Policy covering all perils except those specifically excluded
All-Risk Policy
Insurance covering loss of profits while business building is repaired
Business Interruption Insurance
Insured recovers in ratio of insurance to amount of insurance required
Coinsurance
Contributory negligence that reduces but does not bar recovery
Comparative Negligence
Insurance covering large number of miscellaneous risks
Comprehensive Policy
Obtaining possession of property and converting it to own use
Conversion
Insurance provision whereby insured pays damage up to specified amount; company pays excess up to policy limits
Deductible Clause
Policy clause in which insurer agrees to defend insured against damage claims
Defense Clause
Policy requiring insurer to pay twice ordinary face amount if death is accidental
Double Indemnity Rider
Decreasing term insurance plus savings account
Endowment Insurance
Coverage no matter where property is located
Floating Policy
Fire contained where intended
Friendly Fire
Thirty– or thirty– one day period in which late premium may be paid without policy lapsing
Grace Period
Coverage of many perils for owners living in their houses
Homeowners Policy
Fire out of its normal place
Hostile Fire
Annuity paid until second of two people dies
Joint and Survivor Annuity
Negligent driver recovers if other driver had one last clear chance to avoid injury
Last Clear Chance
Covers cost of higher rent when leased building is damaged.
Leasehold Interest Insurance
Contract of insurer to pay money on death of insured.
Life Insurance
Policy covering only listed perils.
Named Peril Policy
Insurance companies pay for their insureds’ injuries regardless of fault.
No–Fault Insurance
Policy that requires insured to prove loss sustained.
Open Policy
Insurance for damage to car itself.
Physical Damage Insurance
Contract by which insurer pays for damage to property
Property Insurance
Insurance designed to protect third persons from bodily injury and property damage.
Public Liability Insurance
Term insurance renewable without physical examination
Renewable Term Insurance
Policy allowing periodic reporting of inventory on hand to vary coverage amount.
Reporting Form for Merchandise Inventory
Taking property by force
Robbery
Contract whereby insurer assumes risk of death of insured for specified time.
Term Insurance
Taking another’s property without consent.
Theft
Policy that fixes values for insured items
Valued Policy
- An insured generally purchases life insurance to protect against loss of property.
False
- Life insurance companies provide a grace period for the payment of premiums.
True
- Term insurance is effective for the entire life of the insured.
False
- An endowment policy shifts specific risk of loss as a result of death and nothing more.
False
- The location of the insured property often affects the risk.
True
- A collision policy is normally purchased separately from a comprehensive policy.
True
- Insurance policies cannot be assigned.
False
- An injured party cannot recover damages due to an automobile accident unless the injured party was totally without negligence.
False
- A contract whereby the insurer assumes the risk of death of the insured for a specified time is called a ________ policy.
Term
- A “war clause” provides that if the insured dies as a consequence of war activity:
the company will not pay.
- A contract which pays the insured a monthly income from a specific age, usually 65, until death is called ________ insurance.
Annuity
- An insurance policy that applies only to one item, such as a car, is called ________.
Specific Coverage
- A ________ clause provides that the insurance company will pay for damages to a car in excess of a specified amount, usually anywhere from $100 to $250.
Deductible
CROSSWORD: Obtaining possession of a car and converting it to one’s own used to the exclusion of, or inconsistent with, the rights of the owner.
Conversion
CROSSWORD: This type of insurance is correctly defined as endowment insurance at age 100. (Two words)
Whole Life
CROSSWORD: This type of insurance allows the insured to repeat the same policy they had before without having a physical examination.
Renewable
CROSSWORD: Under this, found in property insurance policies that protect the insured from liability to others injured on the property or by the property, the insurer agrees to defend the insured against any claim for damages.
Defense Clause
CROSSWORD: This type of life insurance constitutes any premiums paid that exceed the current cost of the term insurance are put into a fund and earn interest.
Universal
CROSSWORD: Fire insurance does not typically cover __________ that result from a fire. (two words)
Economic Loss
CROSSWORD: There are how many types of policies that most people purchase?
Three
CROSSWORD: This adds twice the ordinary amount when death is caused by accidental means and normally costs the insurer twice the normal amount. (Three words)
Double Indemnity Rider
CROSSWORD: This type of policy are used for trucks, theatrical costumes, circus items, and similar items that are not kept in a fixed location.
Floating
CROSSWORD: This insurance is a decreasing-term insurance plus a savings account.
Endowment
CROSSWORD: This states that if one driver is negligent, but the other driver had one last clear chance to avoid hitting the negligent driver and did not take it, the driver who had the last chance is liable. (Instructor: how would you prove this one?)
Last Clear Chance Rule
CROSSWORD: This type of insurance usually is to protect the beneficiary from financial hardships resulting from the death of the insured.
Life
CROSSWORD: There are this many most important types of life insurance policies.
Four
CROSSWORD: All term policies have one thing in common-they are ________________. (Three words)
Pure Life Insurance
CROSSWORD: This type of policy only covers specific causes such as fire, wind, lightning, hail, theft, and liability of the homeowner in case someone suffers injury on the property.
Named Peril Policy
