BLAW - Ch. 19 Review (Insurance)

The party who agrees to indemnify another is termed the

• insurer

• insured

• beneficiary

The face value of a policy is always paid whenever the covered loss is sustained.

• True

• False

Private disability insurance pays benefits after age 65 and through retirement.

• True

• False

The party taking out the life insurance policy does not have to be the beneficiary or the party whose life is insured.

• True

• False

Which of the following types of insurance covers loss of or damage to property while it is being transported?

• marine

• surety

• fidelity

• none of these

Of the three types of life insurance, term life is the most expensive.

• True

• False

An insurable interest in property must exist at the time of loss for a fire insurance policy to pay.

• True

• False

Which of the following is not a common exclusion in a property and casualty policy?

• loss due to depreciation

• loss due to pollution

• loss due to war

• all listed are common exclusions

A friendly fire that becomes uncontrollable is considered a hostile fire for fire insurance purposes.

• True

• False

No-fault insurance pays a claim only if the insured is found not to be at fault.

• True

• False