Chapter 18Insurance Fundamentals

True Or False

Floater refers to protection that follows the property regardless of location.

Answer : true

True or False

No-Fault Insurance requires that parties to an automobile accident be indemnified by their own insurance company.

Answer :True

True or False

Medicare provides coverage primarily for those age 62 and over.

Answer: false

The correction would be 65 and over

True or false

The face value of a policy is the stated minimum amount that could be paid if the harm a person is insured against occurs.

Answer: false

The face value is the maximum they will pay.

True Or false

An incontestability clause is usually included in a life insurance policy.

Answer : true

Multiple Choice

The Stated maximum amount of money that can be paid on an insurance policy is said to.a. Benefitb. Endorsement c. Face valued. Premium

Answer: C

Liability insurance would be classified as a form of.a) Causality insurance b) Fidelity insurance c) Inland marine insurance d) Social insurance

Answer : A

A hostile fire is.a) A fire started by accident or

negligence

b) A fire started by a deliberate act uncontrolled by the insured

c) A friendly fire that become uncontrollable

d) All of these

Answer : D

Medicare a) Is a type of auto insurance rider

covering injured passengers b) Provides both medical and hospital

insurance for Americans older than 65

c) Provides medical coverage only for the injured passengers of the other auto

d) Both A and C

Answer: B

Sue Anne owns several pieces of expensive jewelry. These items are not typically covered in a standard home owners' insurance to meet her special insurance need?

a) Endorsementb) Coinsurancec) Rider d) Both A and C

Answer:D

Completion

Celia recently Purchased a seagoing yacht. Before she takes the vessel out into open waters, she should purchase ________ insurance

MARINE

The written contract for insurance that Katana receives from her insurance company is known as a

Policy

If Joaquin wants to purchase relatively inexpensive life insurance coverage on himself until his boy graduates college in four years, He will probably buy a ___________ Life insurance policy.

TERM

The type of insurance that provides protection against loss in the event of being involved in an automobile accident with a driver who has insurance but the coverage of which is not sufficient to pay for the full damage amount is called _______ coverage

Underinsured motorists

___________ insurance requires that parties to an automobile accident be indemnified by their own insurance company regardless of who is at fault.

No- Fault