Question 1

Which of the following would strongly support a reduction of the amount of an insurance premium?

Accepted Answer

A)   assuming responsibility to pay part of the loss through a deductible
B)   regulating the insurance industry generally
C)   actively monitoring the insurance industry
D)   mandating the terms that must be found in various insurance contractsE) B) and D)
F) C) and D)

Question 2

Briefly discuss the nature and the content of insurance policies.

Accepted Answer

Insurance policies are contracts that ar...

Question 3

With respect to property insurance,which of the following represents the options that a business owner must decide upon?

Accepted Answer

A)   coverage for replacement value or actual cash value
B)   coverage for the various forms of perils that are insurable by law
C)   negotiating a non-cancellation or severability clause
D)   negotiating to remove exclusion clauses that fall within the intent of the policyE) B) and D)
F) All of the above

Question 4

Which of the following is the major distinction between the various provincial automobile insurance legislations?

Accepted Answer

A)   elimination of bodily injury or death tort actions in all provinces but Manitoba
B)   reliance on tort-based liability or no-fault systems for compensating injury or death
C)   elimination of bodily injury or death tort actions in each jurisdiction except Quebec
D)   reliance on tort-based compensation for pain and suffering is optional in OntarioE) A) and B)
F) A) and C)

Question 5

What is the name often given to the type of insurance coverage that requires an insurer to compensate for loss of profits?

Accepted Answer

A)   an all-risk policy
B)   comprehensive risk insurance
C)   a casualty policy
D)   environmental impairment insuranceE) None of the above
F) All of the above

Question 6

An insurance broker is one who acts for an insurance company in selling insurance.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following would a business law professor most likely attribute to the effect of adequate insurance coverage?

Accepted Answer

A)   a cornerstone of an effective risk management program
B)   exorbitant business expenses
C)   an effective panacea for all legal risks
D)   a loss of integrity among directors and officers of large corporate institutionsE) None of the above
F) B) and C)

Question 8

Identify and briefly describe the basic kinds of insurance.

Accepted Answer

Following are the three basic kinds of i...

Question 9

The forfeiture rule provides the right of the insurer to recover the amount paid on a claim from a third party that caused the loss.

Accepted Answer

A) True 
 B)False

Question 10

Comprehensive general liability insurance coverage generally extends only to unintentional torts,rather than intentional torts.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following would most strongly support the decision to purchase key-person life insurance by a firm?

Accepted Answer

A)   the age of each key-person involved in ownership of the business
B)   the extent of the ownership held by each key-person
C)   a means of financing the purchase of a deceased shareholder's interest
D)   the financial ability of the business to pay the premiumsE) A) and C)
F) A) and D)

Question 12

The subrogation rule provides that a criminal should not be permitted to profit from a crime.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following would strongly support an insured's insurable interest?

Accepted Answer

A)   The property has been given as security for commercial financing.
B)   The insured's beneficial interest would be prejudiced by its destruction.
C)   The validity of the special nature of the insurance contract has been determined.
D)   The property is the subject of any form of financing security.E) A) and B)
F) All of the above

Question 14

Traditionally,insurance programs were unprepared to offer coverage of risks relating to privacy breach with regard to electronic data storage.Which of the following is meant to fill that insurance coverage gap?

Accepted Answer

A)   cyber insurance
B)   liability insurance
C)   privacy insurance
D)   causality insuranceE) All of the above
F) B) and D)

Question 15

Identify the test for whether the insured has an insurable interest in the thing being insured and briefly explain the rationale behind the this rule.

Accepted Answer

The test for whether the insured has an ...

Question 16

Describe the major distinguishing feature between automobile insurance systems from province to province and explain the major difference between the insurance systems.

Accepted Answer

The major distinguishing feature between...

Question 17

Which of the following liability risks would be adequately managed by errors and omissions insurance?

Accepted Answer

A)   liabilities arising from performance of obligations of corporate directors and officers
B)   liabilities arising from negligence in the provision of professional services
C)   insured's portion of the loss that is insured against out of his/her own assets
D)   cost of environmental cleanup of the insured's property arising from business activitiesE) All of the above
F) B) and D)

Question 18

With respect to the ability to manage risk through insurance,which of the following is a known result of the Enron and WorldCom scandals?

Accepted Answer

A)   Directors and officers must now bear the brunt of high deductibles.
B)   The insurance premiums for public companies have tripled.
C)   The insurance premiums for public companies have doubled.
D)   Directors' and officers' liability insurance is now unavailable.E) A) and C)
F) B) and C)

Question 19

A business that produces and sells pesticides would most likely require which of the following types of insurance product?

Accepted Answer

A)   injury and property damage insurance coverage
B)   business interruption, environmental injury, and property insurance coverage
C)   financial loss and personal injury insurance coverage
D)   comprehensive, environmental, and personal injury insurance coverageE) A) and C)
F) All of the above

Question 20

List the possible kinds of liabilities and losses that a business typically seeks to insure against.

Accepted Answer

The possible kinds of liabilities and lo...

Exam 28: Insurance

Traditionally,insurance programs were unprepared to offer coverage of risks relating to privacy breach with regard to electronic data storage.Which of the following is meant to fill that insurance coverage gap?

Correct AnswerverifiedShow Answer

Which of the following would strongly support a reduction of the amount of an insurance premium?

Correct AnswerverifiedShow Answer

Which of the following would a business law professor most likely attribute to the effect of adequate insurance coverage?

Correct AnswerverifiedShow Answer

What is the name often given to the type of insurance coverage that requires an insurer to compensate for loss of profits?

Correct AnswerverifiedShow Answer

With respect to the ability to manage risk through insurance,which of the following is a known result of the Enron and WorldCom scandals?

Correct AnswerverifiedShow Answer

A business that produces and sells pesticides would most likely require which of the following types of insurance product?

Correct AnswerverifiedShow Answer

The forfeiture rule provides the right of the insurer to recover the amount paid on a claim from a third party that caused the loss.

Correct AnswerverifiedShow Answer

Which of the following is the major distinction between the various provincial automobile insurance legislations?

Correct AnswerverifiedShow Answer

Identify and briefly describe the basic kinds of insurance.

Correct AnswerverifiedFollowing are the three basic kinds of i...View AnswerShow Answer

The subrogation rule provides that a criminal should not be permitted to profit from a crime.

Correct AnswerverifiedShow Answer

Briefly discuss the nature and the content of insurance policies.

Correct AnswerverifiedInsurance policies are contracts that ar...View AnswerShow Answer

List the possible kinds of liabilities and losses that a business typically seeks to insure against.

Correct AnswerverifiedThe possible kinds of liabilities and lo...View AnswerShow Answer

With respect to property insurance,which of the following represents the options that a business owner must decide upon?

Correct AnswerverifiedShow Answer

Which of the following would strongly support an insured's insurable interest?

Correct AnswerverifiedShow Answer

Comprehensive general liability insurance coverage generally extends only to unintentional torts,rather than intentional torts.

Correct AnswerverifiedShow Answer

Identify the test for whether the insured has an insurable interest in the thing being insured and briefly explain the rationale behind the this rule.

Correct AnswerverifiedThe test for whether the insured has an ...View AnswerShow Answer

An insurance broker is one who acts for an insurance company in selling insurance.

Correct AnswerverifiedShow Answer

Which of the following liability risks would be adequately managed by errors and omissions insurance?

Correct AnswerverifiedShow Answer

Describe the major distinguishing feature between automobile insurance systems from province to province and explain the major difference between the insurance systems.

Correct AnswerverifiedThe major distinguishing feature between...View AnswerShow Answer

Which of the following would most strongly support the decision to purchase key-person life insurance by a firm?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Following are the three basic kinds of i...
View Answer

Correct Answer
verified

Correct Answer
verified
Insurance policies are contracts that ar...
View Answer

Correct Answer
verified
The possible kinds of liabilities and lo...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The test for whether the insured has an ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The major distinguishing feature between...
View Answer

Correct Answer
verified