Ch38 Types of Insurance Flashcards Preview

Business Law > Ch38 Types of Insurance > Flashcards

Flashcards in Ch38 Types of Insurance Deck (60):
0

Policy covering all perils except those specifically excluded

All-Risk Policy

1

Contract that pays monthly income to insured while alive

Annuity Insurance

2

Insurance covering loss of profits while business building is repaired

Business Interruption Insurance

3

Insured recovers in ratio of insurance to amount of insurance required

Coinsurance

4

Contributory negligence that reduces but does not bar recovery

Comparative Negligence

5

Insurance covering large number of miscellaneous risks

Comprehensive Policy

6

Obtaining possession of property and converting it to own use

Conversion

7

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

Deductible Clause

8

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

Defense Clause

9

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

Double Indemnity Rider

10

Decreasing term insurance plus savings account

Endowment Insurance

11

Coverage no matter where property is located

Floating Policy

12

Fire contained where intended

Friendly Fire

13

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

Grace Period

14

Coverage of many perils for owners living in their houses

Homeowners Policy

15

Fire out of its normal place

Hostile Fire

16

Annuity paid until second of two people dies

Joint and Survivor Annuity

17

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

Last Clear Chance

18

Covers cost of higher rent when leased building is damaged.

Leasehold Interest Insurance

19

Contract of insurer to pay money on death of insured.

Life Insurance

20

Policy covering only listed perils.

Named Peril Policy

21

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

No–Fault Insurance

22

Policy that requires insured to prove loss sustained.

Open Policy

23

Insurance for damage to car itself.

Physical Damage Insurance

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