Ch. 50 Multiple choice

an appraisal clause

Boyce obtains from Capital Insurance Company a policy that provides that if the parties cannot agree on the amount of loss covered by the policy, an estimate of the value by an impartial third party can be demanded. This is, a. an antilapse clause b. an arbitration clause c. an appraisal clause d. an incontestability clause

Transferring and allocating risk

Bret obtains a fire insurance policy on his rental house with Continental Insurance Company. Like all insurance, this policy is an arrangement for a. avoiding the assumption of responsibility b. predicting a potential loss based on known factors c. shifting the imposition of liability d. transferring and allocating risk

An antilapse clause

Dag obtains from Expedient Insurance Company a policy that provides Dag has 30 days after a premium's due date to pay it before the policy will be canceled. This is, a. an antilapse clause b. an arbitration clause c. an appraisal clause d. an incontestability clause

Famous

Dhani is the beneficiary of a life insurance policy on Elmo's life obtained from Famous Insurance Company. The insurer of this policy is a. Dhani b. Elmo c. Famous d. the agent or broker through whom the policy was obtained

At the time a loss occurs

EZ Rentals Company wants to insure the equipment that it rents to the public. To obtain insurance, EZ must have an insurable interest in the equipment a. at any time b. at the time a loss occurs c. at the time a policy is obtained d. continuously from the time a policy is obtained to the time a loss occurs

Hope cannot contest Ginny's statements in the application

Ginny obtains a health insurance policy for her family from Hope Insurance Company. The policy includes an incontestability clause. Under such a clause, after a policy has been in force for 2 or 3 years a. Ginny cannot contest Hope's insurable interest b. Ginny cannot contest Hope's refusal to pay a claim under the policy c. Hope cannot contest Ginny''s eligibility for continued coverage d. Hope cannot contest Ginny's statements in the applicstion

Grace's agent, and not Heroic's agent

Grace applies for a homeowners insurance policy on her house with Heroic Insurance Company through Ian, a broker. In this transaction, Ian is a. an agent for both parties b. Grace's agent, and not Heroic's agent c. Heroic's agent, and not Grace's agent d. not an agent

employer's liability insurance

Shingle and Tile Roofing Contractor, LLC, obtains an insurance policy against liability for injuries or losses sustained by employees during the course of their employment. The policy covers claims not covered by workers' compensation insurance. This is a. casualty insurance b. fidelity or guaranty insurance c. key-person life insurance d. employer's liability insurance