LAW CH. 38 OL QUIZ

T/F: An insured generally purchases life insurance to protect against loss of property
True False

T/F: Life insurance companies provide a grace period for the payment of premiums
True False

T/F: Term insurance is effective for the entire life of the insured
True False

T/F: An endowment policy shifts specific risk of loss as a result of death and nothing more
True False

T/F: The location of the insured property often affects the risk
True False

T/F: A collision policy is normally purchased separately from a comprehensive policy
True False

T/F: Insurance policies cannot be assigned
True False

T/F: An injured party cannot recover damages due to an automobile accident unless the injured party was totally without negligence
True False

A contract whereby the insurer assumes the risk of death of the insured for a specified time is called a ___________ policy

a. general

b. floating

c. contribution

d. term

A "war clause" provides that if the insured dies as a consequence of war activity

a. the company will pay only half the face value

b. the company will not pay

c. the company will pay the full face value

d. the company will void the contract only if the service person did a natural death

A contract which pays the insured a monthly income from a specific age, usually 65, until death is called __________ insurance

a. property

b. annuity

c. extended

d. whole life

An insurance policy that applies only to one item, such as a car, is called ___________

a. an assignment

b. specific coverage

c. extended coverage

d. annuity coverage

A _______ clause provides that the insurance company will pay for damages to a car in excess of a specified amount, usually anywhere from $100 to $250

a. deductible

b. comprehensive

c. floating

d. rider