Exam 51: Insurance Law

A) Strict liability
B) Consumer protection
C) Product liability
D) Business operations
E) Contractors' liability

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A) When he or she notifies the insurer and provides a 30-day notice of his or her intent to cancel the policy.
B) At any time
C) When he or she has paid the required amount of premiums under the policy
D) Once he or she is released from the insured
E) When he or she notifies the insurer and provides a 45-day notice of his or her intent to cancel the policy.

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A) Acknowledged loss
B) Protected loss
C) Understandable failure
D) Insurable interest
E) True injury

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A) A competitor's trademark claim
B) A competitor's copyright claim
C) A competitor's patent claim
D) An employee's intentional tortious act
E) A customer's personal injury claim

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A) The insurance company charges those with a higher risk a higher premium.
B) The insurance company transfers the risk to a different company.
C) The insurance company distributes risk among all of its insured customers and if loss occurs,one party is not forced to bear the entire weight of it.
D) The insurance company transfers the risk to a larger group of people.
E) The insurance company distributes risk among a group with similar risk and if loss occurs,one party is not forced to bear the entire weight of it.

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A) The insured must disclose all material information on the application and fully and truthfully answer any questions.
B) The insured must fully and truthfully answer any questions.
C) The insured must disclose all information on the application and answer only relevant questions to the best of his or her ability.
D) The insured must disclose all information on the application and fully and truthfully answer any questions.
E) The insured must disclose all material information on the application.

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It is likely that the payment ...

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A) Only that the company's knowledge of the misrepresentation would have resulted in rejection of Nari's application.
B) Only that Nari's misrepresentation was material.
C) That Nari's misrepresentation was material;that knowledge of the misrepresentation would have resulted in rejection of her application;and that the insurer's loss would be in an amount over $10,000.
D) Both that Nari's misrepresentation was material and that knowledge of the misrepresentation would have resulted in the refusal to provide insurance.
E) There is no proof that Big Insurance Co.can provide to avoid coverage because,as a matter of law,it is clear that coverage must be provided based on Joon's permissive use of the vehicle.

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A) Loss
B) Economic
C) Business
D) Material
E) Property

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A) Overwriter
B) Guarantor
C) Underseer
D) Underwriter
E) Overseer

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A) An insurer who rightfully cancels a policy is not required to a refund of premium payments covering future time periods.
B) Typically a grace period is required before a policy may be cancelled.
C) State statutes usually govern the circumstances under which an insurer may cancel a policy.
D) Car insurance may be canceled if the insured loses her license because of a driving violation.
E) If an insured fails to pay premiums after a certain period,the insurance company may cancel.

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A) The insurer has a duty to defend the insured for all claims.
B) The insurer has a duty to defend the insured from all claims for which the insured is liable.
C) The insurer has a duty to defend the insured for only claims for which the insured is not liable.
D) The insurer does not have a duty to defend the insured.
E) The insurer has a duty to defend the insured only if the incident was not the insured's fault.

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Some states require that insurance compa...

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A) Terminate the policy.
B) Decrease the insured's amount of coverage.
C) Limit the insured's coverage to a pre-approval process.
D) Require a co-payment or a deductible.
E) Require a doctor's referral for all major examinations.

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A) The physician was not liable because his estimates were meant to be subjective.
B) The physician was liable because he should have known the purpose of his estimates.
C) The physician was not liable because he did not owe the investors a duty of care.
D) The physician was not liable because life expectancy is not an exact science.
E) The physician was liable because he owed the investors a duty of care.

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A) Antilapse
B) Assurance
C) Incontestability
D) Waiver
E) Approval

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