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Business Law > Ch38 Types of Insurance > Flashcards

Ch38 Types of Insurance Flashcards

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0
Q

Contract that pays monthly income to insured while alive

A

Annuity Insurance

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1
Q

Policy covering all perils except those specifically excluded

A

All-Risk Policy

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2
Q

Insurance covering loss of profits while business building is repaired

A

Business Interruption Insurance

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3
Q

Insured recovers in ratio of insurance to amount of insurance required

A

Coinsurance

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4
Q

Contributory negligence that reduces but does not bar recovery

A

Comparative Negligence

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5
Q

Insurance covering large number of miscellaneous risks

A

Comprehensive Policy

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6
Q

Obtaining possession of property and converting it to own use

A

Conversion

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7
Q

Insurance provision whereby insured pays damage up to specified amount; company pays excess up to policy limits

A

Deductible Clause

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8
Q

Policy clause in which insurer agrees to defend insured against damage claims

A

Defense Clause

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9
Q

Policy requiring insurer to pay twice ordinary face amount if death is accidental

A

Double Indemnity Rider

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10
Q

Decreasing term insurance plus savings account

A

Endowment Insurance

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11
Q

Coverage no matter where property is located

A

Floating Policy

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12
Q

Fire contained where intended

A

Friendly Fire

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13
Q

Thirty– or thirty– one day period in which late premium may be paid without policy lapsing

A

Grace Period

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14
Q

Coverage of many perils for owners living in their houses

A

Homeowners Policy

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15
Q

Fire out of its normal place

A

Hostile Fire

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16
Q

Annuity paid until second of two people dies

A

Joint and Survivor Annuity

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17
Q

Negligent driver recovers if other driver had one last clear chance to avoid injury

A

Last Clear Chance

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18
Q

Covers cost of higher rent when leased building is damaged.

A

Leasehold Interest Insurance

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19
Q

Contract of insurer to pay money on death of insured.

A

Life Insurance

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20
Q

Policy covering only listed perils.

A

Named Peril Policy

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21
Q

Insurance companies pay for their insureds’ injuries regardless of fault.

A

No–Fault Insurance

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22
Q

Policy that requires insured to prove loss sustained.

A

Open Policy

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23
Q

Insurance for damage to car itself.

A

Physical Damage Insurance

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24
Q

Contract by which insurer pays for damage to property

A

Property Insurance

25
Q

Insurance designed to protect third persons from bodily injury and property damage.

A

Public Liability Insurance

26
Q

Term insurance renewable without physical examination

A

Renewable Term Insurance

27
Q

Policy allowing periodic reporting of inventory on hand to vary coverage amount.

A

Reporting Form for Merchandise Inventory

28
Q

Taking property by force

A

Robbery

29
Q

Contract whereby insurer assumes risk of death of insured for specified time.

A

Term Insurance

30
Q

Taking another’s property without consent.

A

Theft

31
Q

Policy that fixes values for insured items

A

Valued Policy

32
Q
  1. An insured generally purchases life insurance to protect against loss of property.
A

False

33
Q
  1. Life insurance companies provide a grace period for the payment of premiums.
A

True

34
Q
  1. Term insurance is effective for the entire life of the insured.
A

False

35
Q
  1. An endowment policy shifts specific risk of loss as a result of death and nothing more.
A

False

36
Q
  1. The location of the insured property often affects the risk.
A

True

37
Q
  1. A collision policy is normally purchased separately from a comprehensive policy.
A

True

38
Q
  1. Insurance policies cannot be assigned.
A

False

39
Q
  1. An injured party cannot recover damages due to an automobile accident unless the injured party was totally without negligence.
A

False

40
Q
  1. A contract whereby the insurer assumes the risk of death of the insured for a specified time is called a ________ policy.
A

Term

41
Q
  1. A “war clause” provides that if the insured dies as a consequence of war activity:
A

the company will not pay.

42
Q
  1. A contract which pays the insured a monthly income from a specific age, usually 65, until death is called ________ insurance.
A

Annuity

43
Q
  1. An insurance policy that applies only to one item, such as a car, is called ________.
A

Specific Coverage

44
Q
  1. A ________ clause provides that the insurance company will pay for damages to a car in excess of a specified amount, usually anywhere from $100 to $250.
A

Deductible

45
Q

CROSSWORD: Obtaining possession of a car and converting it to one’s own used to the exclusion of, or inconsistent with, the rights of the owner.

A

Conversion

46
Q

CROSSWORD: This type of insurance is correctly defined as endowment insurance at age 100. (Two words)

A

Whole Life

47
Q

CROSSWORD: This type of insurance allows the insured to repeat the same policy they had before without having a physical examination.

A

Renewable

48
Q

CROSSWORD: Under this, found in property insurance policies that protect the insured from liability to others injured on the property or by the property, the insurer agrees to defend the insured against any claim for damages.

A

Defense Clause

49
Q

CROSSWORD: This type of life insurance constitutes any premiums paid that exceed the current cost of the term insurance are put into a fund and earn interest.

A

Universal

50
Q

CROSSWORD: Fire insurance does not typically cover __________ that result from a fire. (two words)

A

Economic Loss

51
Q

CROSSWORD: There are how many types of policies that most people purchase?

A

Three

52
Q

CROSSWORD: This adds twice the ordinary amount when death is caused by accidental means and normally costs the insurer twice the normal amount. (Three words)

A

Double Indemnity Rider

53
Q

CROSSWORD: This type of policy are used for trucks, theatrical costumes, circus items, and similar items that are not kept in a fixed location.

A

Floating

54
Q

CROSSWORD: This insurance is a decreasing-term insurance plus a savings account.

A

Endowment

55
Q

CROSSWORD: This states that if one driver is negligent, but the other driver had one last clear chance to avoid hitting the negligent driver and did not take it, the driver who had the last chance is liable. (Instructor: how would you prove this one?)

A

Last Clear Chance Rule

56
Q

CROSSWORD: This type of insurance usually is to protect the beneficiary from financial hardships resulting from the death of the insured.

A

Life

57
Q

CROSSWORD: There are this many most important types of life insurance policies.

A

Four

58
Q

CROSSWORD: All term policies have one thing in common-they are ________________. (Three words)

A

Pure Life Insurance

59
Q

CROSSWORD: This type of policy only covers specific causes such as fire, wind, lightning, hail, theft, and liability of the homeowner in case someone suffers injury on the property.

A

Named Peril Policy

Business Law (13 decks)

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