Ch38 Types of Insurance

Question 0

Contract that pays monthly income to insured while alive

Answer 0

Annuity Insurance

Question 1

Policy covering all perils except those specifically excluded

Answer 1

All-Risk Policy

Question 2

Insurance covering loss of profits while business building is repaired

Answer 2

Business Interruption Insurance

Question 3

Insured recovers in ratio of insurance to amount of insurance required

Answer 3

Coinsurance

Question 4

Contributory negligence that reduces but does not bar recovery

Answer 4

Comparative Negligence

Question 5

Insurance covering large number of miscellaneous risks

Answer 5

Comprehensive Policy

Question 6

Obtaining possession of property and converting it to own use

Answer 6

Conversion

Question 7

Insurance provision whereby insured pays damage up to specified amount; company pays excess up to policy limits

Answer 7

Deductible Clause

Question 8

Policy clause in which insurer agrees to defend insured against damage claims

Answer 8

Defense Clause

Question 9

Policy requiring insurer to pay twice ordinary face amount if death is accidental

Answer 9

Double Indemnity Rider

Question 10

Decreasing term insurance plus savings account

Answer 10

Endowment Insurance

Question 11

Coverage no matter where property is located

Answer 11

Floating Policy

Question 12

Fire contained where intended

Answer 12

Friendly Fire

Question 13

Thirty– or thirty– one day period in which late premium may be paid without policy lapsing

Answer 13

Grace Period

Question 14

Coverage of many perils for owners living in their houses

Answer 14

Homeowners Policy

Question 15

Fire out of its normal place

Answer 15

Hostile Fire

Question 16

Annuity paid until second of two people dies

Answer 16

Joint and Survivor Annuity

Question 17

Negligent driver recovers if other driver had one last clear chance to avoid injury

Answer 17

Last Clear Chance

Question 18

Covers cost of higher rent when leased building is damaged.

Answer 18

Leasehold Interest Insurance

Question 19

Contract of insurer to pay money on death of insured.

Answer 19

Life Insurance

Question 20

Policy covering only listed perils.

Answer 20

Named Peril Policy

Question 21

Insurance companies pay for their insureds’ injuries regardless of fault.

Answer 21

No–Fault Insurance

Question 22

Policy that requires insured to prove loss sustained.

Answer 22

Open Policy

Question 23

Insurance for damage to car itself.

Answer 23

Physical Damage Insurance

Question 24

Contract by which insurer pays for damage to property

Answer 24

Property Insurance

Question 25

Insurance designed to protect third persons from bodily injury and property damage.

Answer 25

Public Liability Insurance

Question 26

Term insurance renewable without physical examination

Answer 26

Renewable Term Insurance

Question 27

Policy allowing periodic reporting of inventory on hand to vary coverage amount.

Answer 27

Reporting Form for Merchandise Inventory

Question 28

Taking property by force

Answer 28

Robbery

Question 29

Contract whereby insurer assumes risk of death of insured for specified time.

Answer 29

Term Insurance

Question 30

Taking another’s property without consent.

Answer 30

Theft

Question 31

Policy that fixes values for insured items

Answer 31

Valued Policy

Question 32

1. An insured generally purchases life insurance to protect against loss of property.

Answer 32

False

Question 33

2. Life insurance companies provide a grace period for the payment of premiums.

Answer 33

True

Question 34

3. Term insurance is effective for the entire life of the insured.

Answer 34

False

Question 35

4. An endowment policy shifts specific risk of loss as a result of death and nothing more.

Answer 35

False

Question 36

5. The location of the insured property often affects the risk.

Answer 36

True

Question 37

6. A collision policy is normally purchased separately from a comprehensive policy.

Answer 37

True

Question 38

7. Insurance policies cannot be assigned.

Answer 38

False

Question 39

8. An injured party cannot recover damages due to an automobile accident unless the injured party was totally without negligence.

Answer 39

False

Question 40

9. A contract whereby the insurer assumes the risk of death of the insured for a specified time is called a ________ policy.

Answer 40

Term

Question 41

10. A "war clause" provides that if the insured dies as a consequence of war activity:

Answer 41

the company will not pay.

Question 42

11. A contract which pays the insured a monthly income from a specific age, usually 65, until death is called ________ insurance.

Answer 42

Annuity

Question 43

12. An insurance policy that applies only to one item, such as a car, is called ________.

Answer 43

Specific Coverage

Question 44

13. 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.

Answer 44

Deductible

Question 45

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.

Answer 45

Conversion

Question 46

CROSSWORD: This type of insurance is correctly defined as endowment insurance at age 100. (Two words)

Answer 46

Whole Life

Question 47

CROSSWORD: This type of insurance allows the insured to repeat the same policy they had before without having a physical examination.

Answer 47

Renewable

Question 48

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.

Answer 48

Defense Clause

Question 49

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.

Answer 49

Universal

Question 50

CROSSWORD: Fire insurance does not typically cover __________ that result from a fire. (two words)

Answer 50

Economic Loss

Question 51

CROSSWORD: There are how many types of policies that most people purchase?

Answer 51

Three

Question 52

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)

Answer 52

Double Indemnity Rider

Question 53

CROSSWORD: This type of policy are used for trucks, theatrical costumes, circus items, and similar items that are not kept in a fixed location.

Answer 53

Floating

Question 54

CROSSWORD: This insurance is a decreasing-term insurance plus a savings account.

Answer 54

Endowment

Question 55

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?)

Answer 55

Last Clear Chance Rule

Question 56

CROSSWORD: This type of insurance usually is to protect the beneficiary from financial hardships resulting from the death of the insured.

Answer 56

Life

Question 57

CROSSWORD: There are this many most important types of life insurance policies.

Answer 57

Four

Question 58

CROSSWORD: All term policies have one thing in common-they are ________________. (Three words)

Answer 58

Pure Life Insurance

Question 59

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.

Answer 59

Named Peril Policy