Ch49-TB1-WBL-10O¦êv-F to Eric

Ch49-TB1-WBL-10O¦Ã&ordf...

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Chapter 49 Insurance N.B.:   TYPE  indicates that a question is new, modified, or unchanged, as  follows. N A question  new  to this edition of the Test Bank. + A question  modified  from the previous edition of the Test Bank, = A question  included  in the previous edition of the Test Bank. TRUE/FALSE QUESTIONS 1. The  party  who   pays   the  premiums   for  an  insurance  policy  is  the  un- derwriter. ANSWER: F PAGE: 988 TYPE: = 2. An insurance broker ordinarily works for the insurance company. ANSWER: F PAGE: 988 TYPE: = 3. The consideration paid to an insurer to obtain an insurance policy is the  premium. ANSWER: T PAGE: 988 TYPE: N 4. Insurance is an arrangement for transferring or allocating risk. ANSWER: T PAGE: 988 TYPE: N 241
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242 TEST BANK 1—UNIT ELEVEN: SPECIAL TOPICS 5. Insurance companies are prohibited from engaging in the practice of risk  management. ANSWER: F PAGE: 988 TYPE: =
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CHAPTER 49: INSURANCE 243 6. A sibling may have an insurable interest in his or her sibling’s life. ANSWER: T PAGE: 990 TYPE: + 7. A person has an insurable interest in property if he or she would sustain a  pecuniary loss from the property’s destruction. ANSWER: T PAGE: 991 TYPE: = 8. The states regulate the insurance industry. ANSWER: T PAGE: 993 TYPE: N 9. An insurance application is part of the insurance contract. ANSWER: T PAGE: 993 TYPE: + 10. Once an insurance agent accepts a payment from an applicant, the in- surance company must issue a policy. ANSWER: F PAGE: 993 TYPE: = 11. A coinsurance clause provides that two or more people will be covered by  the same life insurance policy. ANSWER: F PAGE: 994 TYPE: = 12. Under an antilapse clause, an insurance policy will lapse only if no pre- mium is paid on the date due. ANSWER: F PAGE: 995 TYPE: N 13. Arbitration   of   disputes   over   insurance   claims   is   often   provided   for   in  policies. ANSWER: T PAGE: 995 TYPE: = 14. Misrepresentation on an insurance application is a ground for canceling the  policy. ANSWER: T PAGE: 998 TYPE: =
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244 TEST BANK 1—UNIT ELEVEN: SPECIAL TOPICS 15. Once an insurance policy is issued, the insured may not cancel the policy  without the written permission of the insurance company. ANSWER: F PAGE: 998 TYPE: = 16. An insurer can cancel an insurance policy at any time for any reason. ANSWER: F PAGE: 998 TYPE: = 17. No insurance can be canceled for nonpayment of premiums. ANSWER: F PAGE: 998 TYPE: = 18. Term life insurance provides life insurance for a specified term with no cash  surrender value.
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Ch49-TB1-WBL-10O¦Ã&ordf...

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