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
