Business Law Chapter 35

The policyholder and the beneficiary are always the same person.

• true

• false

Term life insurance builds a cash value.

• true

• false

Homeowner's insurance offers protection only for damage to the home.

• true

• false

In a group health insurance plan, many employers pay at least part of each employee's premium.

• true

• false

The cost of life insurance is lower when you are young.

• true

• false

The written contract between a person buying insurance and the insurance company selling it is the

• premium

• binder

• insurance plan

• policy

The amount paid for the insurance is the

• policy

• insurable interest

• indemnification

• premium

The person who receives the insurance proceeds is the

• policyholder

• beneficiary

• insurer

• recipient

An oral or written statement verifying insurance coverage before the regular policy is issued is a

• binder

• premium

• risk

• grace period

Life insurance that offers protection for a limited time period with a renewal option is called

• whole life insurance

• limited-payment insurance

• term life insurance

• endowment insurance