Question 1

Andre insured his automobile against theft under a policy of insurance. Shortly after he had insured the vehicle, he found himself short of cash, and offered to sell the vehicle to his friend for $500 if his friend would dismantle it for parts. Andre did not tell his friend that he intended to claim that the car had been stolen. His friend bought the car for $500 and dismantled it. If the loss is paid by the insurer, and the insurer later becomes aware of the fraud, the insurer may recover the money paid to Andre.

Accepted Answer

A) True 
 B)False

Question 2

Alphonse owns property worth $250,000 and carries $150,000 of insurance subject to an 80% co-insurance clause. Given a $20,000 loss to the property, calculate the indemnity to be paid by the insurer, and explain the significance of the co-insurance clause as it affects Alphonse.

Accepted Answer

In a situation of a co-insurance clause,...

Question 3

The particulars of the insurable interest in a contract of insurance are very important to the insurer in determining how to evaluate the risk of an application. How does an insurer assess the risk it is undertaking and what are the consequences of an incorrect assessment however caused?

Accepted Answer

Insurer's Assessment of Risk:
- contract...

Question 4

Monique, a sculptor, insured one of her pieces she was displaying at an art show. On the first day of the show she sold the piece for $1,000 cash to Brown, who agreed to leave it on display until the show's completion in five days. That night the piece was stolen.

Accepted Answer

A)   Monique may claim her loss from the insurance company.
B)   Brown may claim the loss under the insurance policy.
C)   Monique may claim the loss under the insurance policy on Brown's behalf.
D)   Neither Monique nor Brown may recover under the insurance policy.
E)   None of the responses are correct.F) C) and D)
G) B) and C)

Question 5

Henderson owned a concrete block building valued at $20,000. Because it was virtually fireproof, he insured it for only $10,000 under a policy of insurance which contained an 80% co-insurance clause. Some time later, the building was damaged by fire. Assuming that the fire completely destroyed the building, Henderson would only be entitled to claim for $10,000 under his insurance policy.

Accepted Answer

A) True 
 B)False

Question 6

Where an insured places coverage with three different brokers, each broker will have to contribute to a loss, but the total paid to the insured may not exceed the loss itself.

Accepted Answer

A) True 
 B)False

Question 7

Enumerate the various types of insurance available and describe how the general principles of insurance law apply in each case.

Accepted Answer

Types of Insurance:
Fire Insurance
- ind...

Exam 31: Insurance Law

Where an insured places coverage with three different brokers, each broker will have to contribute to a loss, but the total paid to the insured may not exceed the loss itself.

Correct Answer
verified

The particulars of the insurable interest in a contract of insurance are very important to the insurer in determining how to evaluate the risk of an application. How does an insurer assess the risk it is undertaking and what are the consequences of an incorrect assessment however caused?

Correct Answer
verified
Insurer's Assessment of Risk:
- contract...
View Answer

Monique, a sculptor, insured one of her pieces she was displaying at an art show. On the first day of the show she sold the piece for $1,000 cash to Brown, who agreed to leave it on display until the show's completion in five days. That night the piece was stolen.

Correct Answer
verified

Alphonse owns property worth $250,000 and carries $150,000 of insurance subject to an 80% co-insurance clause. Given a $20,000 loss to the property, calculate the indemnity to be paid by the insurer, and explain the significance of the co-insurance clause as it affects Alphonse.

Correct Answer
verified
In a situation of a co-insurance clause,...
View Answer

Correct Answer
verified

Correct Answer
verified

Enumerate the various types of insurance available and describe how the general principles of insurance law apply in each case.

Correct Answer
verified
Types of Insurance:
Fire Insurance
- ind...
View Answer

Exam 31: Insurance Law

Where an insured places coverage with three different brokers, each broker will have to contribute to a loss, but the total paid to the insured may not exceed the loss itself.

Correct AnswerverifiedShow Answer

The particulars of the insurable interest in a contract of insurance are very important to the insurer in determining how to evaluate the risk of an application. How does an insurer assess the risk it is undertaking and what are the consequences of an incorrect assessment however caused?

Correct AnswerverifiedInsurer's Assessment of Risk:- contract...View AnswerShow Answer

Monique, a sculptor, insured one of her pieces she was displaying at an art show. On the first day of the show she sold the piece for $1,000 cash to Brown, who agreed to leave it on display until the show's completion in five days. That night the piece was stolen.

Correct AnswerverifiedShow Answer

Alphonse owns property worth $250,000 and carries $150,000 of insurance subject to an 80% co-insurance clause. Given a $20,000 loss to the property, calculate the indemnity to be paid by the insurer, and explain the significance of the co-insurance clause as it affects Alphonse.

Correct AnswerverifiedIn a situation of a co-insurance clause,...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Enumerate the various types of insurance available and describe how the general principles of insurance law apply in each case.

Correct AnswerverifiedTypes of Insurance:Fire Insurance- ind...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified
Insurer's Assessment of Risk:
- contract...
View Answer

Correct Answer
verified

Correct Answer
verified
In a situation of a co-insurance clause,...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Types of Insurance:
Fire Insurance
- ind...
View Answer