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1.
(p. 1132)
Insurance is defined as a contract in which the insured party makes payments to the
insurer in exchange for the insurer's promise to make payment or transfer goods to another party
in the event of injury or destruction to the insured party's property or life.
2.
(p. 1132)
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.
3.
(p. 1132)
In an insurance contract, the beneficiary is another name for the insured.
4.
(p. 1132)
The government spends large amounts on social insurance.
5.
(p. 1139)
As a matter of federal law, arbitration clauses are illegal in policies of insurance.
6.
(p. 1139)
Federal law is the primary law addressing when an insurance company can cancel a
policy of insurance.
7.
(p. 1132)
Through the insurance agreement, the insured party transfers his or her risk of loss of
property or life to the insurance company.
8.
(p. 1142)
Premiums for whole-life insurance are generally smaller than those for term-life
insurance.
9.
(p. 1141-1142)
A commercial general liability policy provides protection against intentional
wrongful acts committed by an insured.
10.
(p. 1142)
Life insurance protects a person who is unable to work due to disability.
11.
(p. 1133-1134)
Which of the following was the result in
Royal Capital Development LLC v.
Maryland Casualty Company
, the case in the text involving whether on a policy of insurance
covering "direct physical loss of or damage to" a building that allows the insurer the option of
paying either "the cost of repairing the building" or "the loss of value," the insurer must also
compensate the insured for the diminution in value of the building if the insured elects to repair
the building?
12.
(p. 1137-1138)
Which of the following was the result in
Hartford Underwriters Insurance
Company v. The Cincinnati Insurance Company
, the case in the text involving whether insurance
coverage was available to a party injured when a vehicle hit her while she was loading a van and
the policy at issue provided coverage for a person "occupying" a vehicle defined as "in, upon,
getting in, on, out or off"?
13.
(p. 1132)
Which of the following suggests that people who are insulated from risk sometimes
behave differently?
14.
(p. 1141)
Which of the following is
false
regarding Internet liability protection policies?
15.
(p. 1143)
Which of the following was the result in
Life Partners Inc., v. Miller
, the case in the text
involving the validity of a state law in Virginia requiring that viatical insurance companies pay
certain amounts to terminally-ill policyholders who sell their policies?
16.
(p. 1132)
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?
17.
(p. 1132)
An insurer may also be called a[n] _____.
18.
(p. 1132)
A[n] ______ is a term identifying the person who receives insurance proceeds in the event
of injury or damage.
19.
(p. 1132)
The parties express their agreement for insurance in a document called a[n] _____.
20.
(p. 1132)
Which of the following refers to the potential for loss in an insurance agreement?
21.
(p. 1132)
The transfer and distribution of risk done by an insurer is known as _____.
22.
(p. 1135)
The ______ is the term used for the date an insurance policy begins coverage of an
insured.
23.
(p. 1135)
A[n] ______ is an agreement between an applicant and an insurance company that gives
temporary insurance until the company decides to accept or reject the insurance application.
24.
(p. 1136-1137)
Which of the following was the result on appeal in
Equity Fire & Casualty
Company v. Laurence Traver
, the case in the text in which an insured on a policy of automobile
insurance mailed a premium to the insurer, but it did not reach the insurer prior to the expiration
date of the policy; and the insurer refused to provide coverage for a motor vehicle accident that
occurred after the expiration date of the policy and before the premium was received?
25.
(p. 1139)
A[n] ______ clause states that after an insurance policy has existed for a specified period
of time, the insurance company cannot contest any statements made in the insurance
application.
26.
(p. 1139)
A[n] ______ clause states that the insured has a grace period in which to make an
overdue payment during which time the insurance is effective.
27.
(p. 1144)
Which of the following is true regarding whether the insureds in the "Case Opener" were
entitled to insurance coverage for imported toxic Chinese drywall used in their home?
28.
(p. 1133)
To have a[n] ______ in property or life, a person must be subject to economic loss if there
is damage or harm to the person or property.
