Business Law Ch. 19 all sections

insurance

A contractual arrangement that protects against loss is _____________.

coinsurance

A fire insurance clause that requires the insured to maintain coverage equal to a certain percentage of the total current value of the insured property is _________________.

all of the answers

A hostile fire is ____________________.

an incontestability clause

A life insurance clause prohibiting the insurer form refusing to perform due to misrepresentation or fraud after the policy has been in effect for one or two years is __________________.an incontestability clause

insurer

A party who agrees to indemnify is ______________.

True

An incontestability clause prohibits the insurer from refusing to perform due to misrepresentation or fraud after the policy has been in effect for a specified period--usually two years.

collision and comprehensive

Automobile insurance coverage indemnifying insureds for damage to their own vehicles is ___________.

True

Automobile liability insurance coverage may be augmented by an omnibus clause.

True

HMOs usually require a primary care physician to approve most services before they are performed.

False

Individual applications for health insurance are less likely to be denied or charged a higher premium than those for group policies, because group policies are more stringently underwritten.

False

Inland marine insurance covers oceanic property against loss or damage while it is being transported over land.

True

Insurance is a contractual arrangement that protects against loss.

liability

Insurance providing protection against claims of parties who suffer injury or other loss as a result of negligence committed by the insured would be __________>

True

Medicare consists of a hospital insurance program and a medical insurance program.

False

Medicare provides coverage primarily for those aged 62 and older.

True

Most insurance contracts provide for a one-month grace period.

False

No additional coverage can be written into an established life insurance policy.

True

No-fault insurance requires that parties to an automobile accident be indemnified by their own insurance company.

beneficiary

Party who benefits from the acts of others is ______________.

True

Some life insurance policies contain provisions that exempt the insurer from liability when death is due to certain causes.

endorsement

Standard insurance policies can be modified by a(n) _______ to eliminate certain risks from coverage.

False

Standard policy and forms of fire insurance may be modified by insurable interest.

False

The Social Security retirement insurance program was meant to provide the sole income of retired people.

premium

The consideration for a contract of insurance is ___________.

False

The federal government controls all unemployment compensation programs.

False

The grace period is the time between when a claim if filed and the payment is received.

False

The insurer agrees to pay the insured for loss suffered by the beneficiary.

insured

The party who is covered for protected by an insurance policy is _________________.

insurable interest

The potential to sustain loss if the insured property is damaged or destroyed or if the insured person is injured or dies is __________.

Social Security Act

The primary source for social insurance coverage in the country is the __________________.

face value

The stated maximum amount of money that can be paid on an insurance policy is the ____________.

face value

The stated maximum amount that could be paid to the beneficiary is __________.

True

The term floater refers to protection that follows the property regardless of location.

casualty

The type of insurance that covers automobile, burglary, disability, and liability would be __________________.

casualty

The type of insurance that indemnifies for losses resulting from accident, chance, or negligence is ___________ insurance.

fire

The type of property insurance that cowers the direct loss to property resulting from fire, lightning strike, or removal from premises endangered by fire is ___________________.

policy

The written contact of insurance is ____________.

risk management

This program should include a scenario analysis of anything that could go wrong is ____________.

True

To obtain a contract of insurance against a risk, a premium must be paid.

moral hazard

When a prospective insured and or beneficiary behaves in a harmful or reckless manner knowing they will be compensated for their loss whether they succeed or fails in their endeavor is ___________.

indemnify the loss

When an insurance company makes payment for a loss to a suffering party, the insurance company is said to _____________.

fire

____ insurance covers the direct loss to property resulting from fire, lightning strikes, or removal from premises endangered by fire.

collision

_____ insurance protects against direct and accidental damage done to a car that is overturned or wrecked into another object.

no-fault

_____ insurance requires that parties to an automobile accident be indemnified by their own insurance company regardless of who is at fault.

exclusions

_________ are exceptions to insurance policies.

property

_________ insurance is the general type of insurance intended to indemnify for harm to the insured's personal or real property brought about by perils such as fire, theft,and windstorm.

liability

__________ insurance covers personal injury or property damage claims for which the insured is legally responsible.

comprehensive

__________ insurance indemnifies against all damage to the insured's car except that caused by collision or upset.