Social Science Business Insurance
CLCS Intro
Leave the first rating
Save
Students also studied
Flashcard sets Study guides
Uniform Mandatory Provisions Risk Mgmt: Property & Casualty CH ... Ch. 3 LEGAL CONCEPTS OF
12 terms 31 terms 67 terms
Gabbyautry22 Preview torilea57 Preview Jaidenshane1
Terms in this set (39)
Flipping a Coin 3 times might result 1) Law of Large Numbers
in heads each time. Flipping a coin
a million times will probably result 2) Risk Management Technique
in a more even split between heads 3) Adverse Selection
and tails. This illustrates which of 4) Indemnity
the following concepts?
Donna is an agent at XYZ Insurance 1) Express Authority
Company. She signed a contract
with XYZ specifically authorizing 2) Implied Authority
her to sell policies for XYZ. The 3) Actual Authority
authorization is an example of 4) Virtual Authority
what?
John's Insurance agent obtains 1) Contract of Adhesion
coverage for John's home and car.
The contracts are written and 2) Aleatory Contract
drawn by the insurer and offered to 3) Standard Contract
John on a "take it or leave it" basis. 4) Contract of Cohesion
Such a contract is known as what?
, 1) The burden is on the insurer to show that the loss is excluded from
coverage
The Kent Manufacturing Company
has an open perils commercial
2) The burden is on Kent to show that a named peril caused the loss
property policy. Which of the
3) The burden is on the insurer to show that a named peril caused the
following is true of the Kent policy
loss
if a loss occurs?
4) The burden is on Kent to show that the loss is excluded from
coverage
1) The Damage caused by the tornado and the cost to stay in a hotel
are both direct losses
The Jordan's home was struck by a
2) The Damage caused by the tornado and the cost to stay in a hotel
tornado. The home is in such bad
are both indirect losses
condition that the family must stay
3) The damage caused by the tornado is an indirect loss, and the cost
in a hotel until the home is repaired.
to stay in a hotel is a direct loss
Which of the following is true
regarding the Jordan Family's loss?
4) The damage caused by the tornado is a direct loss, and the cost to
stay in a hotel is an indirect loss
1) Hazard
Bill stores kerosene in his garage
for use with a kerosene heater.
2) Peril
Storage of a flammable is
3) The subject of insurance
considered what?
4) The change of loss
1) An insured is likely not to clear brush away from his home to prevent
damage from forest fires because he has homeowners insurance.
2) An insured is likely to undervalue the contents of his home and
accept insurance coverage for the lower value of the property
Which of the following is an
3) An insured is likely not to report a loss to his agent in a timely
example of a moral hazard?
manner and then sue the insurer for bad faith when the claim is denied
4) An insured is likely to inflate the value of his home's contents in a
claim after the home is destroyed by a fire
1) Selling insurance
Kim is an insurance solicitor for the
ABC Insurance Agency. Which of
2) Countersigning
the following could be one of her
3) Cancelling policies
job functions?
4) Binding coverage
Insurance companies and 1) Federal
practicioners are regulated by 2) City
governmental authority. The 3) County
authority also regulates rates,
forms, and endorsements. At what 4) State
level of government is insurance
regulated?
CLCS Intro
Leave the first rating
Save
Students also studied
Flashcard sets Study guides
Uniform Mandatory Provisions Risk Mgmt: Property & Casualty CH ... Ch. 3 LEGAL CONCEPTS OF
12 terms 31 terms 67 terms
Gabbyautry22 Preview torilea57 Preview Jaidenshane1
Terms in this set (39)
Flipping a Coin 3 times might result 1) Law of Large Numbers
in heads each time. Flipping a coin
a million times will probably result 2) Risk Management Technique
in a more even split between heads 3) Adverse Selection
and tails. This illustrates which of 4) Indemnity
the following concepts?
Donna is an agent at XYZ Insurance 1) Express Authority
Company. She signed a contract
with XYZ specifically authorizing 2) Implied Authority
her to sell policies for XYZ. The 3) Actual Authority
authorization is an example of 4) Virtual Authority
what?
John's Insurance agent obtains 1) Contract of Adhesion
coverage for John's home and car.
The contracts are written and 2) Aleatory Contract
drawn by the insurer and offered to 3) Standard Contract
John on a "take it or leave it" basis. 4) Contract of Cohesion
Such a contract is known as what?
, 1) The burden is on the insurer to show that the loss is excluded from
coverage
The Kent Manufacturing Company
has an open perils commercial
2) The burden is on Kent to show that a named peril caused the loss
property policy. Which of the
3) The burden is on the insurer to show that a named peril caused the
following is true of the Kent policy
loss
if a loss occurs?
4) The burden is on Kent to show that the loss is excluded from
coverage
1) The Damage caused by the tornado and the cost to stay in a hotel
are both direct losses
The Jordan's home was struck by a
2) The Damage caused by the tornado and the cost to stay in a hotel
tornado. The home is in such bad
are both indirect losses
condition that the family must stay
3) The damage caused by the tornado is an indirect loss, and the cost
in a hotel until the home is repaired.
to stay in a hotel is a direct loss
Which of the following is true
regarding the Jordan Family's loss?
4) The damage caused by the tornado is a direct loss, and the cost to
stay in a hotel is an indirect loss
1) Hazard
Bill stores kerosene in his garage
for use with a kerosene heater.
2) Peril
Storage of a flammable is
3) The subject of insurance
considered what?
4) The change of loss
1) An insured is likely not to clear brush away from his home to prevent
damage from forest fires because he has homeowners insurance.
2) An insured is likely to undervalue the contents of his home and
accept insurance coverage for the lower value of the property
Which of the following is an
3) An insured is likely not to report a loss to his agent in a timely
example of a moral hazard?
manner and then sue the insurer for bad faith when the claim is denied
4) An insured is likely to inflate the value of his home's contents in a
claim after the home is destroyed by a fire
1) Selling insurance
Kim is an insurance solicitor for the
ABC Insurance Agency. Which of
2) Countersigning
the following could be one of her
3) Cancelling policies
job functions?
4) Binding coverage
Insurance companies and 1) Federal
practicioners are regulated by 2) City
governmental authority. The 3) County
authority also regulates rates,
forms, and endorsements. At what 4) State
level of government is insurance
regulated?
