Law Ch 35

The danger of a loss of, or injury to, property, life, or anything else is called a ___________.

Peril

James mortgage his house and received a certain amount of money in return as a loan. However, he repaid half the loan in six months. Which of the following is likely to be true in this scenario, at the present moment?

The mortgage has an insurable interest towards have to loan amount.

True or False - A bailee has an insurable interest in the property bailed to the extent of possible loss.

True

True or False - A minor may disaffirm and insurance contract, but may only be able to demand the unearned premium for the unexpired portion of the policy.

True

True or False - A stock insurance company is a corporation for which the original investment was made by stockholders.

True

True or False - A tenant has insurable interest in property to the extent of the loss that would be suffered by damage to the property.

True

True or False - Insurance contracts must specify the particular risks being transferred from one party to another.

True

True or False - Untrue statements or unfulfilled promises by the insured permit the insured to declare the policy void.

True

A statement of the insured that relates to the risk is called a _______________.

Warranty

The maximum amount that the insurer agrees to pay in case of a loss is known as the ________.

Face

True or False - A "binder "on an insurance policy is a clause added to another contract to limit the base contract.

False

True or False - A creditor has insurable interest in the life of the debtor beyond the extent of the debt.

False

True or False - And insurer is a party who purchases insurance to provide protection from a loss.

False

True or False - Either party to an insurance contract may claim the benefit of a violation of the contract by the other party.

False

True or False - I will for failure to disclose pertinent information by the insured is known as subrogation.

False

To contract for a policy of insurance, one must have a(n) ____________, or an interest in the nonoccurrence of the risk insured against.

Insurable interest

Which of the following best defines insurance?

It is a Contract we're by a party transfers a risk of financial loss to a risk bearer for a fee.

Which of the following best defines concealment?

It is a willful failure to disclose any information pertinent to the insurance contract by the insured.

Which of the following best describes subrogation?

It is the right of an insurer to assume the legal rights of the insured.