CHAPTER 38—TYPES OF INSURANCE Key
1. Which of the following is true of life insurance contracts?
2. _____ contracts are those whereby the company assumes, for a specified period of time, the risk of the death
of the insured.
3. Which of the following is a double indemnity rider?
4. Which of the following is covered under a fire insurance policy without any extended coverage?
5. A property insurance policy which states just the maximum amount that will be paid by
the insurer for any property is known a(n) _____.
6. Which of the following is covered under collision automobile insurance for a car?
7. An insurance policy designed to protect only third persons from bodily injury and property damage is known
as a _____.
8. When an insurance company declines to provide an individual with a poor driving record with automobile
insurance:
9. Life insurance is a contract by which the insurer agrees to pay a beneficiary a specified sum upon the death of
the insured.
10. Endowment insurance contracts are those whereby the company assumes, for a specified period of time, the
risk of the death of the insured.
11. A term insurance policy is decreasing-term insurance plus a savings account.
12. If a member of the armed forces possessing a life insurance dies a natural death, the company can refuse to
pay.
13. The law requires life insurance companies to provide a grace period of 60 days in every life insurance
policy.
14. A contract of property insurance is one of compensation for loss that protects the policyholder from actual
loss.
15. Scorching and searing from a friendly fire are covered under a fire insurance policy.
16. Floating policies are used to cover circus paraphernalia.
17. Conversion is taking another’s property without the owner’s consent, with the intent to wrongfully deprive
the owner of the property.
18. Collision occurs when the colliding object consists of a natural phenomenon, such as rain.
19. A comprehensive policy covers only the hazards enumerated in the policy.
20. Explain the last chance clear rule.