Insurance

There are a number of definitions used to determine whether an insured is disabled. The split definition of disability includes the following two: 'Own occupation' changing to 'modified any occupation'. 'Modified any occupation' changing to 'own occupation'. 'Own occupation' changing to 'any occupation'. 'Any occupation' changing to 'own occupation

'Own occupation' changing to 'modified any occupation'.

Dave is 46, married and has an annual salary of $60,000. His employer offers group term life insurance coverage equal to 2 times his annual salary. The employer's cost for Dave is $.40 per $1,000 of which Dave pays $.08 per month per $1,000. The Table 1 rate for 45-49 year olds is $0.15 per $1,000. What additional income must Dave include in his taxable income this year resulting from the group term insurance? $10.80 $115.20 $126.00 $132.40

Solution: The correct answer is A. Dave is paying $115.20 each year for the coverage ($120 × 0.08 × 12). The Table I cost is calculated by subtracting $50,000 (the tax-free amount allowed under Section 79) from the $120,000 actually purchased, dividing the remainder by $1,000, multiplying the Table 1 rate of 0.15 times 12. ($120,000 - $50,000 / $1,000 × 0.15 × 12). So, the Table 1 premium is $126 (rounded.) Subtract the $115.20 already paid by Dave from the $126 Table 1 premium to determine the additional taxable income ($126 - $115.20 = $10.80).

Kathleen recently died. She was fully insured and left behind her husband Robert (age 60), their two children, Nora (age 18 and in college) and David (age 13), and her dependent single mother Joy (age 70). All of the following are true, except? Robert is entitled to a maximum survivorship benefit of 71.5% of Kathleen's PIA subject to the family maximum. Joy is entitled to a survivorship benefit of 82.5% of Kathleen's PIA subject to the family maximum. Nora is not eligible for survivorship benefits. David is entitled to a survivorship benefit of 75% of Kathleen's PIA subject to the family maximum

Solution: The correct answer is A. Her husband, Robert, who is age 60 is entitled to a survivorship benefit of 71.5% of Kathleen's PIA based on retirement but he would be entitled to 75% since he is caring for a child under 16 (David). Her mother, Joy, age 70, who was dependent on Kathleen before her death is entitled to a survivorship benefit of 82.5% of Kathleen's PIA. Her daughter, Nora, age 18 and in college is not eligible for survivorship benefits because she is not less than 18 and being in college is not an exception to the rule. Her son, David, age 13 is entitled to a survivorship benefit of 75% of Kathleen's PIA.

Which one of the following accurately describes the characteristics of group term life insurance? The minimum size group is 10, unless specific requirements are met. A medical exam is generally required to secure coverage. Coverage amounts may be based only on job classification and length of service. The payout at death is always in the form of a lump sum payment

Solution: The correct answer is A. Option "B" - Medical exams may not be required for group term. Option "C" - Coverage amounts may be (and many times are) based upon salary level, not job classification and length of service. Option "D" - Payouts are almost always made in lump sum payment, unless otherwise specifically requested by the beneficiary.

When a property claim has been submitted, the adjuster is called in to do which of the following: Assist the insured in the preparing the proof-of-loss statement. Determine whether there was a loss covered by the policy. Classify the loss as standard, substandard, or ineligible. Choose the arbitrator who will determine the amount of loss. I and II only. I and III only. I and IV only. II and III only.

Solution: The correct answer is A. Options "I" and "II" are roles of an adjuster. Option "III" is incorrect because the classification is the underwriter's job. Option "IV" is incorrect because the adjuster determines the amount of loss. An arbiter would enter into the situation only if the two sides cannot agree.

Which of the following statements accurately reflect the nature of buy-sell agreements? A stock redemption plan must have a corporation as a party to the contractual arrangement. A stock redemption plan increases the cost basis of surviving shareholders. Under a cross-purchase plan funded with life insurance, premiums paid are tax deductible to the payor. Proceeds of a life insurance policy owned by a surviving shareholder must be included in the gross estate of the decedent.

Solution: The correct answer is A. The corporation must be a party to the stock redemption plan. A stock redemption plan is a stock purchase by a corporation, so the cost basis of the surviving shareholders are not affected, thus they do not receive a step up in basis. Proceeds of a policy owned by a surviving shareholder are not includible in the decedent's gross estate. Premiums are not tax deductible.

Which of the following statement(s) concerning the choice of a stock redemption (entity agreement) versus a cross-purchase corporate buy-sell agreement funded with insurance is FALSE? The use of existing insurance to fund the agreement causes a transfer-for-value problem if an entity agreement is selected, but does NOT cause this problem if a cross-purchase approach is used. A cross-purchase agreement should be selected if the surviving owners expect to sell their interests during their lifetimes. An entity approach may solve the affordability problem if one owner is significantly older than the others. An entity agreement becomes more desirable as the number of owners included in the agreement increases.

Solution: The correct answer is A. Transfer-for-value problems can be created if existing policies are transferred between shareholders of a corporation in a cross-purchase agreement. An exception to transfer-for-value exists for transfers from a shareholder or officer to the corporation (to fund an entity purchase agreement), but not for transfers between shareholders. B is a true statement because when surviving owners expect to sell their business interest during lifetime, they will prefer a cross-purchase agreement to allow them to increase their cost basis in the business upon the death of one of the owners. C is a true statement because the business will be the owner, premium payer, and beneficiary of the policies in an entity purchase agreement. Since the business will be paying the high premium on the policy covering the older owner, the other owners are relieved of that financial hardship. D is a true statement because with an entity purchase agreement only one life insurance policy is needed for each owner. With a cross-purchase agreement the number of policies needed = n(n-1).

A supplier of your company experiences fire damage at their plant. They cannot provide an essential part to you for a number of weeks. This, of course, delays your operation. You are covered by a very extensive insurance. For this reason, you would go to collect from your: Contingent business interruption. Extra expense insurance. Business interruption. Lease hold interest coverage.

Solution: The correct answer is A. You would go to collect from your contingent business interruption insurance because it is a business which you do not own that has a direct effect on your own business

Which of the following life insurance transactions would result in the death benefit being subject to income tax under the transfer-for-value rule? A. Kerri's irrevocable life insurance trust purchases a new universal life policy with Kerri as the insured and her grandchildren as beneficiaries. B. Danny sells an existing $300,000 whole life insurance policy on his life to his former business partner for $60,000. The policy had a gift tax value of $45,000 at the time of the sale. C. Ross buys an 8-year-old $700,000 policy on his life from Mike, his brother-in-law and former business associate, in return for its $110,000 gift tax value. Ross names his wife Anne as beneficiary of the policy. D. Kate sells her son a $100,000 policy on her life for $1,000. At the time of the sale, the policy had a gift tax value of $4,000 and the mother had paid net premiums of $5,000.

Solution: The correct answer is B. A is incorrect. Since the ILIT purchased a new insurance policy, this does not represent a transfer-for value. C is incorrect. The transfer of a policy to the insured represents an exception to the transfer for value rule. Therefore, the proceeds will remain income-tax free to Anne. D is incorrect. This represents a "part gift part sale." There has been a gift of $3,000 ($4,000 value of the policy less $1,000 paid by the son), and a sale for $1,000 of a policy worth $4,000. In this example, the transaction will be within the "carryover basis" exception of the transfer-for-value rule, because Kate's $5,000 basis was greater than the $1,000 she received (so there was no gain or adjustment to her basis by the son), and the gift value is greater than the consideration. Where the transferor's basis is GREATER than the consideration received, the transferee carries over the transferor's basis. Here, the son's basis (for purposes of determining gain or loss on subsequent policy transactions) will be the basis he can carry over from that of his mother's, i.e., $5,000. So, in spite of the valuable consideration paid by the son, he will receive the proceeds income-tax free.

Under the basic approaches commonly in use in the no-fault auto insurance dilemma, which of the following best describes the plan where injured parties do not give up the right to sue, but simply refrain from such action until either a dollar threshold or a verbal threshold is reached? Extended first party coverage. Modified no-fault coverage. Pure no-fault coverage. Unsatisfied judgment no-fault coverage.

Solution: The correct answer is B. Modified no-fault coverage is the plan where injured parties do not give up the right to sue, but simply refrain from such action until either a dollar threshold or a verbal threshold is reached.

Casey Russell, age 45, comes to see you because he has just been diagnosed with a terminal illness. His doctor told him he will NOT be able to work more than another 4 months and that his life expectancy is only 12 months. Casey also tells you that he has always been self-employed and with the exception of the last two years, has NEVER paid into Social Security. What benefits will be available to Casey and his family from Social Security as a result of his death? Assume his wife is also 45-years old, and his two children are ages 15 and 19. Monthly survivor's benefit for the worker's child, under age 18 (or age 18 if the child is a full-time high school or elementary school student). Monthly survivor's benefit for the worker's spouse, or former spouse, who is caring for a dependent child under age 16 who is eligible for benefits. Monthly survivor's benefit for the worker's spouse until age 65. Lump-sum death benefits of $255 for the worker's spouse or child. I, II and III only. I, II and IV only. III and IV only.

Solution: The correct answer is B. Monthly survivor's benefit for the worker's spouse occur only if there are minor children for the surviving spouse to raise. Once the children are of age, benefits to the spouse cease.

Which of the following statements accurately describes a fully insured group health insurance plan? Dismemberment benefits from accidental death and dismemberment coverage (AD&D) are taxable to the employee. Benefits from a comprehensive medical expense plan are always tax free to the employee. Death benefits from AD&D coverage are taxable to the employee's beneficiary if the contract does not meet the definition of a life insurance contract. Employer-paid premiums are deductible by the employer if the benefits are payable to the employer and are considered additional reasonable compensation

Solution: The correct answer is B. Option "A" - AD&D benefits are not taxable to the employee's beneficiaries. Option "C" is false. Option "D" - Premiums are always deductible to the employer. In a self-funded plan which is discriminatory, some or all of the benefits may be taxable to key employees.

Becky, age 53, was married to Herman for 16 years before their divorce. Becky has not remarried, and she and Herman had no children. Herman worked for a bottling company for 33 years before retiring last month. Shortly after retiring, he died in a car accident. The earliest Becky could collect Social Security benefits is age: A. 55. B. 60. C. 62. D. 67.

Solution: The correct answer is B. Social Security survivor benefits are available to a surviving spouse beginning at age 60. The benefits are available to a former spouse, if the marriage lasted at least 10 years.

The best life insurance policy for the payment of federal estate taxes for a 50-year old couple with illiquid assets is: An individual whole-life policy on each spouse on a cross-ownership basis. A joint and last-to-die life insurance policy owned by an irrevocable trust. A joint last-to-die life insurance policy owned by the spouse with the larger estate. A joint and last-to-die life insurance policy owned by the spouse with the smaller estate. Solution

Solution: The correct answer is B. The "last-to-die" will pay on the second death, and if it is held in a trust, it will not add to the insured estate tax due because it will not increase the taxable estate.

The HMO model under which the subscribers have the greatest flexibility is: The staffing model. The IPA model. The group model. The network model.

Solution: The correct answer is B. The IPA (Individual Practice Association) allows the greatest flexibility among HMO coverages.

Reasons to use life insurance to fund business continuation agreements include which of the following: It provides sufficient assets for the buyer to perform on the contract. Insurance protects the company and its shareholder because the IRS cannot challenge value of stock if provided in a Shareholders Agreement (SHA). The insurance gives the agreement efficacy. No money . . . No deal. The insurance strengthens the commitment of the buyer when it must follow through on the agreement. I, II and III only. I, III and IV only. II and IV only. IV only.

Solution: The correct answer is B. The IRS may challenge the valuation of stock in business continuation agreements, with or without insurance; the IRS is not bound by any contractual agreement between the company and its shareholders.

When Pete Morin purchased his $100,000 home, he insured it at the required coinsurance amount of 80% of the value. Over the last five years, the value of his home has increased and is now $160,000, but he has not increased his coverage. Pete has a $500 deductible. He has a kitchen fire causing $10,000 in damage. What amount will his insurer pay for repairs? $4,250 $5,750 $6,250 $9,500

Solution: The correct answer is B. The amount carried divided by the amount required (80% of current value) times the loss, minus the deductible equals the payment. One of the tricks on this one is that he purchased $80,000 of coverage initially (80% of the purchase price). So, the covered loss equals [$80,000 / (.80 × $160,000)] × $10,000 = $6,250. The insurer will pay $6,250 - $500 = $5,750.

Where no-fault auto insurance is involved, which of the following is a correct match? Pure no-fault: Several states have enacted this system. Verbal threshold: Law suits may be allowed when there is a fatal injury. Modified no-fault: In no way impedes the right of tort action. Pure no-fault: Allows for tort action under certain conditions

Solution: The correct answer is B. There is no "pure no-fault" in existence in any state in the U.S. Modified no-fault allows suits when verbal and dollar thresholds have been crossed. Dollar threshold is damage occurring above a certain amount, not a limit to actionable compensatory amounts.

Monica is a 52-year-old single mom of two teenage children. She was recently divorced and had all her legal paperwork updated while she was working with her attorney. She is receiving minimal child support and no alimony. Her job transferred her 6 months ago, and she has no family nearby in her new hometown. She is currently earning enough to fully support her and her children but does worry about providing for them if anything should happen to her. Her employer provides a great health insurance and retirement plan. She recently brought up her concerns with her financial planner. What do you believe her financial planner should address as most important? A. Life Insurance. B. Disability Insurance. C. Long term care insurance. D. Updating her will.

Solution: The correct answer is B. While choices, A, B and C are all important, the most pressing would be to support three individuals through a disability. Life insurance should be addressed after disability, followed by LTC. She mentioned she updated her legal documents already.

Extreme Co, a C corporation, has implemented a tax qualified group long-term care insurance plan and a cafeteria plan for its employees. Which of the following statements is correct regarding the group long-term care plan? A. Premiums paid by the company for the long-term care plan are included in the taxable income of the employees. B. The long-term care insurance cannot be included in the cafeteria plan. C. Benefits from the long-term care plan are taxable to the employees. D. The deduction for premiums is limited to 50% of the company's taxable income

Solution: The correct answer is B. . A is incorrect. Premiums paid by the company for the long-term care plan are excluded from the taxable income of the employees C is incorrect. Benefits from the long-term care plan will be received tax-free by the employees. D is incorrect. There is no such limit on the deduction for long-term care premiums for a corporation

Fredrik, a small business owner, is consulting with Mike Rogers, CFP®. Fredrik owns a small used car lot and actively participates in the business. The business was established as an LLC, owned entirely by Fredrik. Which combination of insurance policies should Mike recommend to Fredrik to best protect his property and revenue? I. Businessowners (BOP) policy. II. HO-5 homeowners policy. III. Business overhead insurance policy. IV. Long-term disability policy. V. Personal Auto Policy. A. I and IV. B. II and V. C. I, III and IV. D. I, III, IV and V.

Solution: The correct answer is C. A BOP policy (business owners policy) provides protection from liability claims and theft. Long-term disability is relevant to any business owner and is often supplemented by business overhead insurance. Business overhead insurance will create a revenue stream to Fredrik's car dealership in the event he suffers an accident or disability. PAP (Personal Auto Policy) policies exclude commercial vehicles without an independent endorsement, and even then, the vehicle may not be property covered. An HO-5 policy is a residential homeowners policy and would not offer the car dealership protection

Charlie and Craig are brothers and business partners. They launched a successful coffee chain, Brother's Coffee, in a non-community property state, three years ago. Brother's Coffee comprises a majority of their assets. Charlie and Craig consulted with Jovan Smyth, CFP® as they were opening their business. Jovan's financial guidance was helpful to them, and he continues to help them with retirement planning for their employees. They wanted to meet with him to determine next steps before deciding if they should franchise their business. Which should be the CFP® professional's course of action? A. Create Wills leaving Brother's Coffee to their alma mater B. Purchase key employee policies on one another. C. Create a buy-sell agreement funded with life insurance. D. Gather data on the company and personal financial situations of the brothers

Solution: The correct answer is C. A buy-sell agreement is paramount to protect the business ownership. A is incorrect. The brothers have not given any indication that they have charitable planning goals. B is incorrect. This may offer some protection, but a buy-sell agreement would be more effective. D is incorrect. As this is a long-standing relationship, we can conclude the data gathering has been done.

John is age 59 and unmarried, and is thinking about retiring soon from his job at a sign making company. He currently has a net worth of approximately $2,300,000, and lives in a state that imposes both a state income tax and a state death tax. Which one of the following insurance coverages would be most appropriate for John at this stage of his life? A. Long-term care insurance. B. Long-term disability insurance. C. Medical insurance. D. Life insurance.

Solution: The correct answer is C. Although all of the coverages listed may potentially be important, the most pressing need is medical insurance. John will lose his company coverage and not yet be eligible for Medicare. Disability insurance is designed to replace income lost due to disability. Since John is about to retire, disability insurance is not necessary. Life insurance may not meet John's needs as does not have immediate family to support or provide any indication he would like to leave a large sum of money to charity. Long term care is likely the next item to address with John after filling his immediate need of medical insurance.

Smith and Jones purchased a warehouse. The value of the warehouse was $1 million. Their insurance agent carefully explained the coinsurance requirement of 80% to them. Smith and Jones wisely decided to insure the warehouse for the full value that they had paid for it. Their agent, however, had failed to mention the inflation protection option which would have upped the amount of insurance they had each year for coverage on the warehouse. They also had a $5,000 deductible. As a result of all this, at the end of five years with the warehouse value approximately $1,300,000, Smith and Jones had a fire. The fire caused $50,000 worth of damage. The insurance company paid the following: $50,000 $45,000 $43,077 $48,077

Solution: The correct answer is C. Amount carried ($1,000,000) divided by amount required (80% of $1,300,000 which is $1,040,000) times the loss, minus the deductible of $5,000. The answer is $43,077. If the inflation option had been chosen, then the coverage would have increased with inflation and therefore would have met the coinsurance requirement. In that case, the insured would have only paid the deductible.

Which of the following pairs matches correctly? Pure risk; which occurs in the event of possible loss and/or possible gain. Speculative risk; which exists when there is an uncertain possibility of loss and no chance of gain. Dynamic risk; in which the core of risk resides in the change in the environment caused by the changing human condition. Static risk; which is dependent on the state of the individual and is measurable and observable.

Solution: The correct answer is C. Dynamic risk is the only one correctly paired with its definition

Your client's employer has recently adopted a group universal life insurance plan. The advantages of such a plan for your client typically include all of the following EXCEPT that: It allows employees to borrow or withdraw cash. It provides an opportunity to continue coverage after retirement. The entire premium cost is borne by the employer. It provides flexibility in designing coverage to best meet individual needs.

Solution: The correct answer is C. Plans may vary, but "typically" employees also contribute to group life plans. An employee can choose a multiple of their salary to fit their coverage needs. Most companies limit coverage to 3xs salary with no evidence of insurability, and up to 5xs salary with evidence of insurability.

What benefits are available to the survivors of a deceased worker who was currently insured but not fully insured at death? Lump sum death benefit of $255. Mother or father's spousal benefit for caring for a qualifying child under age 16. Income benefits to a child under age18. Survivor benefit to spouse (assume not remarried) at their full retirement age. I and III only. II, III and IV only. I, II and III only. All of the above.

Solution: The correct answer is C. There are no survivor benefits to a surviving spouse with no qualifying child.

The person who commits the tort will not benefit or be relieved of obligation and responsibility just because the victim has insurance. This best describes: Negligence per se. Vicarious liability. Collateral source rule. Absolute liability.

Solution: The correct answer is C. This is the collateral source rule. The survival of a tort action means that even in the event of death of the victim or the tortfeasor, the tort will remain actionable. Negligence per se regards a violation of a legal standard.

Which of the following is NOT a factor that affects (and in some cases limits) the liability of the insurer? Insurable interest. Policy face value. Rate structure. Deductibles

Solution: The correct answer is C. Without an insurable interest, the insurance will not be sold. This affects liability of an insurer. Face value is the most (limit) an insurer will pay. Deductibles are paid by the insured, and other insurance is taken into account in all policies but life insurance, where face value limits the amount paid. The rate structure is directly related to establishing premiums, not a liability of the insurance company.

All of the following statements describe benefits of a typical buy-sell agreement EXCEPT: It provides liquidity to the deceased's estate for paying death taxes and other debts. It provides for continuation of the business by the surviving owners. It can establish the estate tax value of the business interest in the deceased's estate. It provides the surviving owners with the option to buy the deceased's business interest.

Solution: The correct answer is D. A buy-sell agreement should provide for a commitment of the surviving owners to buy the deceased's interest, not just an option to buy. The owner wants to be assured that there will be a sale of the interest at the time of death, not just an option. The other statements are benefits of a buy-sell agreement.

Which of the following accurately reflects the use of split-dollar life insurance in a business setting? It can be a fringe benefit to an employee. Insurance premiums are usually split between the employer and the employee (insured). It may be used to fund a buy-sell stock redemption agreement. I only. I, and II only. II and III only. I, II and III.

Solution: The correct answer is D. All these statements are correct. Split dollar life insurance is an arrangement where an employee and employer generally share the premium cost and cash value for death benefit of a life insurance policy covering the life of the employee.

Which of the following represents the LEAST favorable means of securing long-term care coverage? Continuing Care Retirement Communities. Disability Income Policy Rider. Association Arrangements. Life Insurance Policy Rider

Solution: The correct answer is D. Continuing Care Retirement communities are structured specifically for Long-Term Care (LTC) coverage, as are the individual policies. Association arrangements are also LTC specific. These three all provide excellent means to obtain LTC coverage. The disability income policy rider takes a coverage that can no longer be carried after age 65 and converts it to useful LTC coverage, another excellent plan. The least favorable is to have diminished coverage that one will most definitely need at some point - life insurance.

Which of the following would have the least risk exposure? A. Maintaining the HO policy liability at $100,000 without an umbrella policy. B. Maintaining a long-term disability policy with a two-year benefit period. C. Not having a long-term care policy. D. Having $60,000 Part A coverage on a home with a replacement cost of $100,000.

Solution: The correct answer is D. Having $60,000 Part A coverage on a home with a replacement cost of $100,000. This would have the LEAST risk exposure. A - leaves unlimited liability. B - two years in a nursing home out of pocket could be 192,000 - 240,000 C - Average stay in a nursing home is 3 years. Average cost 8k-10k a month. Could cost 360,000 for a 3 year stay. D is the different in what you should have, 80% of 100k and what he does have, which is a 20,000 difference.

If the insured under a disability income insurance policy moves to a more hazardous job and receives an increase in compensation with the job change, what will be the likely effect on the disability coverage? The relation of earnings to insurance clause will require an adjustment in the benefits payable. The definition of disability will automatically change from "own-occupation" to "any-occupation". The change of risk clause will require new underwriting of the risk. The change of occupation provision will permit the insurer to reduce benefits payable

Solution: The correct answer is D. In the case of increased risk on a disability policy the insurer will generally reduce coverage to match what the premium will purchase at the new, riskier position.

Jennifer Anton was named by her husband, John Anton, as irrevocable beneficiary of his life insurance policy based on a court order. John would now like to borrow from the policy's cash value. What right does John have to the cash value? John can borrow the cash value, but he may not surrender the policy because of Jennifer's interest in the policy. Jennifer must allow John to borrow from the cash value because he is the owner of the policy and as such has a right to do so. John may borrow from the cash value because Jennifer has only a contingent interest in the policy. John can only borrow from the cash value with Jennifer's written approval because she has a conditionally vested interest in the policy.

Solution: The correct answer is D. Irrevocable beneficiaries have all of the rights of the policy owner. In this case, the insured must secure permission from the irrevocable beneficiary with regard to any activity or dispositive change in the policy.

Which one of the following statements about life insurance, endowments, and annuity products and their tax attributes is correct? Modified endowment contracts do NOT provide a tax-free death benefit if the policyholder dies prior to age 59 1/2. Tax-deferred annuities owned by a corporation are eligible for tax-deferred accumulation. Permanent life insurance owned by a pension plan is 100% income tax-free to the beneficiary of the plan. If a person purchased a life and 20-year term-certain immediate annuity at age 50, there would be NO premature distribution penalty

Solution: The correct answer is D. Option "D" is correct because immediate annuities are not subject to a premature distribution penalty tax. This only applies to deferred annuities. In a MEC all withdrawals are considered to be above the basis (earnings first). Therefore all distributions are subject to tax until the insured's basis is reached on a LIFO basis, but death benefits are still income tax free.

Which of the following statements about the conversion privilege is/are true regarding group life insurance plan provided by employers? The policy may be converted from a permanent product to a term product. The policy may be converted if the insured provides evidence of insurability. At conversion, the billing is switched to the insured. The policy may be converted from a term policy to an individual permanent life policy. I and IV only. I, II and III only. I, II, III and IV. III

Solution: The correct answer is D. Option "I" - Switching from a permanent to a term product is not a conversion available in any group life insurance. Option "II" - These group plan term-to-permanent conversions will occur without evidence of insurability.

Inland marine insurance covers all of the following except: Imports. Floaters. Domestics shipments. The hull of the ship

Solution: The correct answer is D. The hull of the ship is covered under ocean marine insurance. An inland marine insurance is a category of insurance that protects against property losses to goods in transit.