FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 51: Insurance Law

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following is false in regard to an insurer's right to cancel a policy of insurance?

A) An insurer who rightfully cancels a policy is not required to a refund of premium payments covering future time periods.
B) Typically a grace period is required before a policy may be cancelled.
C) State statutes usually govern the circumstances under which an insurer may cancel a policy.
D) If an insured fails to pay premiums after a certain period, the insurance company may cancel.
E) Car insurance may be canceled if the insured loses her license because of a driving violation.

F) D) and E)
G) A) and C)

Correct Answer

verified

Show Answer

Question 2

True/False

Review LaterAdd Note

Review Later

As a matter of federal law, arbitration clauses are illegal in policies of insurance.

A) True
B) False

Correct Answer

verified

Show Answer

Question 3

Multiple Choice

Review LaterAdd Note

Which of the following types of life insurance provides coverage for a specified term?

Which of the following types of insurance protects members of specific professions from liability associated with their professional acts?

The insured party in insurance law is the party who makes a payment to an insurance company, called a premium, in return for insurance coverage.

Which of the following is false regarding Internet liability protection policies?

If an insurance policy covers an individual's life or health, the insurance is ______ insurance.

A[n] ______ is a term identifying the person who receives insurance proceeds in the event of injury or damage.

"Prudence's Imprudence." Unfortunately, Prudence failed to act prudently. She had a bad day after failing a business law test and breaking up with her boyfriend. While drinking a mocha and talking on the cell phone with her best friend, she slammed into the back of George's car. Shortly thereafter she received notice of a lawsuit setting forth George's claims for personal injury and property damage. Prudence was very busy studying for her next business law test and hanging out with her boyfriend with whom she had reconciled. Also, she just did not feel like dealing with a pesky lawsuit. Several months later, Alice, a new agent with the insurer called Prudence and told Prudence that she had just heard something about a lawsuit from the plaintiff's lawyer. Alice told Prudence that although investigation would be difficult after so many months, she would like to talk with Prudence because the trial was scheduled for the next week. Prudence told Alice that she had no time to meet at the moment and that just before court, she would meet with the lawyer the company appointed to represent her. Alice told Prudence that the insurance company was going to deny coverage. Alice also told Prudence that vehicle insurance did not typically provide for legal representation and that, in any event, no lawyer would be provided. Finally, Alice told Prudence that her insurance was cancelled immediately because she was a real jerk and failed to help, that insurance would not pay for accidents that were the fault of Prudence anyway, and that the insurer wanted nothing more to do with her. -Which of the following is true regarding the assertion of Alice that vehicle insurance policies do not generally provide coverage for legal representation?

Life insurance protects a person who is unable to work due to disability.

Premiums for whole-life insurance are generally smaller than those for term-life insurance.

Property of Mary is damaged in a fire. She claims the property damage amounted to $10,000, and the insurer claims it only amounted to $5,000. Which of the following is true in this situation?

"Prudence's Imprudence." Unfortunately, Prudence failed to act prudently. She had a bad day after failing a business law test and breaking up with her boyfriend. While drinking a mocha and talking on the cell phone with her best friend, she slammed into the back of George's car. Shortly thereafter she received notice of a lawsuit setting forth George's claims for personal injury and property damage. Prudence was very busy studying for her next business law test and hanging out with her boyfriend with whom she had reconciled. Also, she just did not feel like dealing with a pesky lawsuit. Several months later, Alice, a new agent with the insurer called Prudence and told Prudence that she had just heard something about a lawsuit from the plaintiff's lawyer. Alice told Prudence that although investigation would be difficult after so many months, she would like to talk with Prudence because the trial was scheduled for the next week. Prudence told Alice that she had no time to meet at the moment and that just before court, she would meet with the lawyer the company appointed to represent her. Alice told Prudence that the insurance company was going to deny coverage. Alice also told Prudence that vehicle insurance did not typically provide for legal representation and that, in any event, no lawyer would be provided. Finally, Alice told Prudence that her insurance was cancelled immediately because she was a real jerk and failed to help, that insurance would not pay for accidents that were the fault of Prudence anyway, and that the insurer wanted nothing more to do with her. -Which of the following is true regarding Alice's complaint that Prudence failed to help?

Which of the following is a term used to define the payment made by an insured party in exchange for a later payment by an insurer in the event of damage or injury to insured property or person?

Federal law is the primary law addressing when an insurance company can cancel a policy of insurance.

Which of the following types of insurance protects the producer or manufacturer of a good from loss incurred by people who are injured using the good?

A commercial general liability policy provides protection against intentional wrongful acts committed by an insured.

"Prudence's Imprudence." Unfortunately, Prudence failed to act prudently. She had a bad day after failing a business law test and breaking up with her boyfriend. While drinking a mocha and talking on the cell phone with her best friend, she slammed into the back of George's car. Shortly thereafter she received notice of a lawsuit setting forth George's claims for personal injury and property damage. Prudence was very busy studying for her next business law test and hanging out with her boyfriend with whom she had reconciled. Also, she just did not feel like dealing with a pesky lawsuit. Several months later, Alice, a new agent with the insurer called Prudence and told Prudence that she had just heard something about a lawsuit from the plaintiff's lawyer. Alice told Prudence that although investigation would be difficult after so many months, she would like to talk with Prudence because the trial was scheduled for the next week. Prudence told Alice that she had no time to meet at the moment and that just before court, she would meet with the lawyer the company appointed to represent her. Alice told Prudence that the insurance company was going to deny coverage. Alice also told Prudence that vehicle insurance did not typically provide for legal representation and that, in any event, no lawyer would be provided. Finally, Alice told Prudence that her insurance was cancelled immediately because she was a real jerk and failed to help, that insurance would not pay for accidents that were the fault of Prudence anyway, and that the insurer wanted nothing more to do with her. -On which of the following legal theories would the insurer likely attempt to deny coverage?

If a policy of insurance protects a person or property from accidental injury, the insurance is referred to as ______ insurance.

Penny, a bit of a hypochondriac, decides that she should have MRIs covering her whole body and insists that her doctor order them. Penny tells her doctor that she is not concerned about cost because she has great insurance. Which of the following is the appropriate and recognized term for the problem associated with her behavior as far as an insurer is concerned?