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ch 51 quiz from notes
Terms in this set (16)
The consideration paid to an insurer to obtain an insurance policy is the premium.
A party who would sustain a financial loss from the destruction of property has an insurable interest in it.
The existence of an insurable interest is a primary concern when determining liability under an insurance policy.
A loss sustained between the time of application and the delivery of an insurance policy may not be covered.
A coinsurance clause provides that two or more people will receive payment on a claim under the same insurance policy.
Under an antilapse clause, an insurance policy will lapse only if no premium is paid on the sate due.
An insured who has policies with several companies covering the same insurable interest has multiply insurance coverage.
Because insurance law follows contract law, bad faith tort actions against insurers are not allowed.
Bret obtains a fire insurance policy on his rental house with Continental Insurance Company. Like all insurance, this policy is an arrangement for
transferring and allocating risk
Dhani is the beneficiary of a life insurance policy on Elmo's life obtained from Famous Insurance Company. The insurer of this policy is
EZ Rentals Company wants to insure the equipment that it rents to the public. To obtain insurance, EZ must have an insurable interest in the equipment
at the time a loss occurs
Shingles & Tile Roofing Contractor, LLC, obtains an insurance policy against liability for injuries or losses sustained by employees during the course of their employment. The policy covers claims not covered by workers' compensation insurance. This is
employer's liability insurance
Grace applies for a homeowners' insurance policy on her house with Heroic Insurance Company through Ian, a broker. In this transaction, Ian is
Grace's agent, and not Heroic's agent
Ginny obtains a health insurance policy for her family from Home Insurance Company. The policy includes an incontestability clause. Under such a clause, after a policy has been in force for two or three years
Hope cannot contest Ginny's statements in the application.
Boyce obtains from Capital Insurance Company a policy that provides that if the parties cannot agree on the amount of a loss covered by the policy, an estimate of the value by an impartial third party can be demanded.
an appraisal clause
Dag obtains from Expedient Insurance Company a policy that provides Dag has thirty days after a premium's due date to pay it before the policy will be canceled. This is
an incontestability clause
THIS SET IS OFTEN IN FOLDERS WITH...
Business Law Final
Business Law Midterm
BE 325 HW 10A
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