Insurance- Property section 2

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Author:
h_scott
ID:
292120
Filename:
Insurance- Property section 2
Updated:
2014-12-27 17:37:47
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Insurance
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Insurance, Property section 2
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  1. Which of the following would not be covered by the Terrorism Act?
    A: CGL
    B: Workers' compensation
    C: Surety insurance
    D: Health insurance
    D: Health insurance
  2. Each of the following elements is necessary for formation of a legally valid contract EXCEPT:
    A: Consideration
    B: Agreement
    C: Signatures of each party
    D: Competent parties
    C: Signatures of each party
  3. Which element of an insurance contract requires that the insured have the legal capacity to make a contract?
    A: Agreement
    B: Legal object
    C: Consideration
    D: Competent parties
    D: Competent parties
  4. All of the following statements are true about a representation EXCEPT:
    A: A policy is usually voided if a misrepresentation is of a material fact
    B: Representations are sometimes given orally
    C: A representation of a fact is the same as an expression of opinion
    D: It usually appears in an application
    C: A representation of a fact is the same as an expression of opinion
  5. In which company may policyholders receive policy dividends when there is a profit?
    A: Mutual
    B: Stock
    C: Service
    D: Assessment
    A: Mutual
  6. An insurance company owned by its policyholders, who receive a return of unused premiums in the form of policy dividends, is a(n):
    A: Stock company
    B: Fraternal insurer
    C: Mutual company
    D: Assessment insurer
    C: Mutual company
  7. Failure to disclose known facts when filling out an insurance application is an act of:
    A: Aleatory action
    B: Impersonation
    C: Estoppel
    D: Concealment
    D: Concealment
  8. In the formation of a legal contract, each party must give something of value. Under contract law, this is referred to as:
    A: Indemnity
    B: Consideration
    C: Agreement
    D: Adhesion
    B: Consideration
  9. In which company may stockholders share in the profits and losses of the insurer?
    A: Assessment
    B: Stock
    C: Mutual
    D: Service
    B: Stock
  10. All of the following statements regarding concealment are false EXCEPT:
    A: If concealment is suspected, the burden of proof is on the insured
    B: Concealment involves answering a question without intent to defraud
    C: Concealment is never grounds for rescission of a policy
    D: Concealment is the failure to disclose any material fact
    D: Concealment is the failure to disclose any material fact
  11. When a property insurance applicant makes a statement on an application that becomes part of the contract and includes a promise by the insured, the statement is considered to be a:
    A: Warranty
    B: Waiver
    C: Representation
    D: Condition precedent
    A: Warranty

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