INSURANCE

A homeowners policy has the same coverages as a fire insurance policy except that it is written for a homeowner rather than a business.

F

A homeowners policy includes coverage for theft of the insured personal property, but not when the insured has the property away from the home.

F

An insurance broker is the agent of the insurance company.

F

An insurance broker typically works for a single insurance company.

F

Because there are so many professionals in today's workforce, professional malpractice premiums are reasonably priced.

F

Coinsurance clauses are not common in fire insurance policies.

F

Due to rising insurance costs, most modern fire insurance policies do not provide replacement cost insurance.

F

In a life insurance policy, the insured is the party who is to receive the insurance proceeds upon the death of the insured.

F

In automobile insurance, comprehensive coverage refers to a policy that covers all types of losses related to the ownership and operation of an automobile.

F

Incontestability clauses are invalid as they are not fair to insurers.

F

Insurance companies are not exempt from the federal antitrust laws.

F

It is against public policy for a life insurance policy to be made contingent on passing a physical exam.

F

Mold is generally not covered under the majority of insurance policies.

F

Most fire insurance policies are issued using the Delaware standard fire insurance policy form.

F

Most insurance companies allow valuable items to be covered under an insured's homeowners policy thereby eliminating the need for any additional insurance.

F

Preexisting medical conditions are usually covered by many medical insurance policies.

F

State insurance laws generally provide that insurance must be sold through a broker or agent.

F

Subrogation typically applies to life insurance policies.

F

The insured owes a duty to defend against any suit brought against him or her that involves a claim within the coverage of the policy.

F

The usual time period for the validity of a suicide clause is 10 years.

F

Workers compensation was designed to make payments to those workers who put more time in on the job.

F

A coinsurance clause requires the insured to pay a percentage of an insured loss.

T

An insurance agent is the agent of the insurance company.

T

An insurance contract is one where one party indemnifies another against loss from an unknown event.

T

An insurance deductible clause usually states that insurance proceeds are payable only after the insured has paid a specified amount of the damage or losses.

T

An insured that does not have an insurable interest in the property being insured is treated like a wager and it cannot be enforced.

T

An omnibus clause under an automobile liability policy covers other drivers of the insured's automobile.

T

Business interruption insurance was designed to reimburse the insured whose business is severely destroyed or damaged during the time it takes to repair or reconstruct the damaged property.

T

Collision insurance pays for damages caused if an automobile owner's car is struck by another car.

T

Fidelity insurance is designed to protect an employer against his or her dishonest employees.

T

If George represents that he will not store flammable products in an insured building, he is making a promissory warranty.

T

In a life insurance policy, it is possible for the owner of the policy and the insured to be the same person.

T

In the case of a life insurance policy on the insured's own life, it is not necessary for the named beneficiary to have an insurable interest in the insured.

T

Insurance acquired through an insurance agent becomes effective when the insured submits an application and pays the premium.

T

Insurance can be sold directly to the insured by the insurer.

T

Insurance companies need only refund policy premiums if an insured commits suicide before the date specified in the suicide clause of the life insurance policy.

T

Life insurance is really death insurance.

T

Smaller companies usually do not carry directors' and officers' liability insurance as it is too expensive.

T

The McCarran-Ferguson Act provides that insurance is regulated by the states.

T

The insurable interest in a piece of property must exist at the time of loss.

T

The primary coverage of renters insurance is for the possessions of the insured.

T

Title insurance protects against defects in title such as liens or encumbrances that are not disclosed on the title insurance policy.

T

Under the collision coverage of an automobile insurance policy, loss to the insured automobile is covered even in an accident that is the fault of the insured.

T

With disability insurance, the payments are generally made to the insured even though the insured does not document actual expenses.

T