
4. The principal types of life insurance are straight life, limited-payment life, term, and endowment
insurance. Straight life insurance (also known as ordinary life insurance, or whole life insurance, is a
kind of insurance that requires the payment of premiums throughout the life of the insured and which
pays the beneficiary the face value of the policy upon the insured’s death. Limited-payment life
insurance is a kind of insurance that provides that the payment of premiums will stop after a stated
length of time—usually ten, twenty, or thirty years. The amount of the policy will be paid to the
5. In property insurance, there must be a continuing insurable interest in the property that is to be
7. Under most fire insurance policies, claims may also be made for losses from water used to fight
the fire; scorching; smoke damage to goods; deliberate destruction of property as a means of
controlling a spreading fire; lightning, even if there is no resultant fire; riot or explosion, if a fire does
result; and losses through theft or exposure of goods removed from a burning building. A homeowner’s
policy gives protection for losses from fire, windstorm, burglary, vandalism, and injuries suffered by
other persons while on the property. An ocean marine insurance policy covers ships at sea. Inland