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cheeseman_buslaw7_tif_50

cheeseman_buslaw7_tif_50 - 50 INSURANCE 1 The...

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1) The McCarran-Ferguson Act provides that insurance is regulated by the states. Answer: TRUE Diff: 1 Topic: Insurance 2) Insurance companies are not exempt from the federal antitrust laws. Answer: FALSE Diff: 1 Topic: Insurance 3) An insurance contract is one where one party indemnifies another against loss from an unknown event. Answer: TRUE Diff: 1 Topic: Insurance 4) Insurance can be sold directly to the insured by the insurer. Answer: TRUE Diff: 1 Topic: Insurance 5) An insured that does not have an insurable interest in the property being insured is treated like a wager and it cannot be enforced. Answer: TRUE Diff: 2 Topic: Insurance 6) An insurance broker typically works for a single insurance company. Answer: FALSE Diff: 1 Topic: Insurance 68 INSURANCE  50
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7) An insurance agent is the agent of the insurance company. Answer: TRUE Diff: 1 Topic: Insurance 8) An insurance broker is the agent of the insurance company. Answer: FALSE Diff: 1 Topic: Insurance 9) State insurance laws generally provide that insurance must be sold through a broker or agent. Answer: FALSE Diff: 2 Topic: Insurance 10) Insurance acquired through an insurance agent becomes effective when the insured submits an application and pays the premium. Answer: TRUE Diff: 1 Topic: Insurance 11) It is against public policy for a life insurance policy to be made contingent on passing a physical exam. Answer: FALSE Diff: 1 Topic: Insurance 12) 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. Answer: FALSE Diff: 2 Topic: Insurance 13) 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. Answer: TRUE Diff: 2 Topic: Insurance 69
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14) The insurable interest in a piece of property must exist at the time of loss. Answer: TRUE Diff: 2 Topic: Insurance 15) 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. Answer: TRUE Diff: 1 Topic: Insurance 16) Preexisting medical conditions are usually covered by many medical insurance policies. Answer: FALSE Diff: 1 Topic: Insurance 17) A coinsurance clause requires the insured to pay a percentage of an insured loss. Answer: TRUE Diff: 2 Topic: Insurance 18) If George represents that he will not store flammable products in an insured building, he is making a promissory warranty. Answer: TRUE Diff: 2 Topic: Insurance 19) Incontestability clauses are invalid as they are not fair to insurers. Answer: FALSE Diff: 3 Topic: Insurance 20) Subrogation typically applies to life insurance policies. Answer: FALSE Diff: 2 Topic: Insurance 70
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21) Life insurance is really death insurance. Answer: TRUE Diff: 1 Topic: Life Insurance 22) In a life insurance policy, it is possible for the owner of the policy and the insured to be the same person.
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