Ch38 Types of Insurance Flashcards

(60 cards)

0
Q

Contract that pays monthly income to insured while alive

A

Annuity Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
1
Q

Policy covering all perils except those specifically excluded

A

All-Risk Policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Insurance covering loss of profits while business building is repaired

A

Business Interruption Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Insured recovers in ratio of insurance to amount of insurance required

A

Coinsurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Contributory negligence that reduces but does not bar recovery

A

Comparative Negligence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Insurance covering large number of miscellaneous risks

A

Comprehensive Policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Obtaining possession of property and converting it to own use

A

Conversion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

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

A

Deductible Clause

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

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

A

Defense Clause

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

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

A

Double Indemnity Rider

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Decreasing term insurance plus savings account

A

Endowment Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Coverage no matter where property is located

A

Floating Policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Fire contained where intended

A

Friendly Fire

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

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

A

Grace Period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Coverage of many perils for owners living in their houses

A

Homeowners Policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Fire out of its normal place

A

Hostile Fire

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Annuity paid until second of two people dies

A

Joint and Survivor Annuity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

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

A

Last Clear Chance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Covers cost of higher rent when leased building is damaged.

A

Leasehold Interest Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Contract of insurer to pay money on death of insured.

A

Life Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Policy covering only listed perils.

A

Named Peril Policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

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

A

No–Fault Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Policy that requires insured to prove loss sustained.

A

Open Policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Insurance for damage to car itself.

A

Physical Damage Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Contract by which insurer pays for damage to property
Property Insurance
25
Insurance designed to protect third persons from bodily injury and property damage.
Public Liability Insurance
26
Term insurance renewable without physical examination
Renewable Term Insurance
27
Policy allowing periodic reporting of inventory on hand to vary coverage amount.
Reporting Form for Merchandise Inventory
28
Taking property by force
Robbery
29
Contract whereby insurer assumes risk of death of insured for specified time.
Term Insurance
30
Taking another’s property without consent.
Theft
31
Policy that fixes values for insured items
Valued Policy
32
1. An insured generally purchases life insurance to protect against loss of property.
False
33
2. Life insurance companies provide a grace period for the payment of premiums.
True
34
3. Term insurance is effective for the entire life of the insured.
False
35
4. An endowment policy shifts specific risk of loss as a result of death and nothing more.
False
36
5. The location of the insured property often affects the risk.
True
37
6. A collision policy is normally purchased separately from a comprehensive policy.
True
38
7. Insurance policies cannot be assigned.
False
39
8. An injured party cannot recover damages due to an automobile accident unless the injured party was totally without negligence.
False
40
9. A contract whereby the insurer assumes the risk of death of the insured for a specified time is called a ________ policy.
Term
41
10. A "war clause" provides that if the insured dies as a consequence of war activity:
the company will not pay.
42
11. A contract which pays the insured a monthly income from a specific age, usually 65, until death is called ________ insurance.
Annuity
43
12. An insurance policy that applies only to one item, such as a car, is called ________.
Specific Coverage
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.
Deductible
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.
Conversion
46
CROSSWORD: This type of insurance is correctly defined as endowment insurance at age 100. (Two words)
Whole Life
47
CROSSWORD: This type of insurance allows the insured to repeat the same policy they had before without having a physical examination.
Renewable
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.
Defense Clause
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.
Universal
50
CROSSWORD: Fire insurance does not typically cover __________ that result from a fire. (two words)
Economic Loss
51
CROSSWORD: There are how many types of policies that most people purchase?
Three
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)
Double Indemnity Rider
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.
Floating
54
CROSSWORD: This insurance is a decreasing-term insurance plus a savings account.
Endowment
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?)
Last Clear Chance Rule
56
CROSSWORD: This type of insurance usually is to protect the beneficiary from financial hardships resulting from the death of the insured.
Life
57
CROSSWORD: There are this many most important types of life insurance policies.
Four
58
CROSSWORD: All term policies have one thing in common-they are ________________. (Three words)
Pure Life Insurance
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.
Named Peril Policy