瑞达rejda保险教材英文练习题9

1、(Rejda)PrinciplesofRiskManagementandInsurance,11eChapter9FundamentalLegalPrinciples1)FundamentalpurposesoftheprincipleofindemnityincludewhichofthefollowingI. Toreducephysicalhazards.II. Topreventtheinsuredfromprofitingfrominsurance.A) IonlyB) IIonlyC) bothIandIID) neitherInorIIAnswer:BQuestionStatus

2、:PreviousEdition2) WhichofthefollowingisafundamentalpurposeoftheprincipleofindemnityA) toreducemoralhazardB) tominimizephysicalhazardsC) tosettlepropertyinsurancelossesonareplacementcostbasisD) torequiredeductiblesinallpropertyinsurancepoliciesAnswer:AQuestionStatus:PreviousEdition3) Sam'sfurnit

3、urewasdestroyedbyafire.Thefurniturecost$1200whenitwaspurchased,butsimilarnewfurniturenowcosts$1800.Assumingthefurniturewas50percentdepreciated,whatistheactualcashvalueofSam'slossA) $600B) $900C) $1200D) $1800Answer:BQuestionStatus:Revised4) Allofthefollowingareexceptionstotheprincipleofindemnity

4、EXCEPTA) lifeinsurance.B) valuedpolicies.C) replacementcostpropertyinsurance.D) actualcashvaluepropertyinsurance.Answer:DQuestionStatus:PreviousEdition5) Underwhichofthefollowingrulesisactualcashvaluedeterminedbytakingintoconsiderationallrelevantfactorsanexpertwouldusetodeterminethevalueofthepropert

5、yA) thecircumstantialevidenceruleB) thebroadevidenceruleC) thepropertyindemnityruleD) theobjectivevalueruleAnswer:BQuestionStatus:PreviousEdition6) AtotallossunderavaluedpolicyissettledonthebasisoftheA) marketvalueoftheloss.B) actualcashvalueoftheloss.C) replacementvalueoftheloss.D) amountofinsuranc

6、ecoveringtheloss.Answer:DQuestionStatus:PreviousEdition7) WhichofthefollowingstatementsdescribeshowlosseswillbesettledifapropertyinsurancepolicyiswrittenonareplacementcostbasisA) Lossesaresettledwithouttheapplicabledeductible.B) Lossesaresettledwithoutadeductionfordepreciation.C) Theinsurermustrepla

7、cethedamagedordestroyedpropertyinlieuofacashsettlement.D) Thepolicyisconvertedtoavaluedpolicy.Answer:BisQuestionStatus:PreviousEdition8) Whichofthefollowingstatementsabouttheprincipleofinsurableinterest(are)trueI) Itmakesitdifficulttomeasuretheamountofaninsured'sloss.J) .Itreducesmoralhazard.K)

8、IonlyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:BQuestionStatus:PreviousEdition9) AllofthefollowingwillsupportaninsurableinterestforpurposesofpurchasingpropertyandliabilityinsuranceEXCEPTA) closefamilyrelationship.B) potentiallegalliability.C) securedcreditors.D) acontractright.Answer:AQuestionSta

9、tus:PreviousEdition10) Whichofthefollowingstatementsaboutaninsurableinterestinlifeinsuranceis(are)trueI) Itisrequiredofanypersonnamedasbeneficiary.J) .Itmayresultfromapecuniary(financial)interest.K) IonlyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:BQuestionStatus:Revised11) Whenmustaninsurableinter

10、estlegallyexistinlifeinsuranceA) onlyatthetimeoftheinsured'sdeathB) onlyattheinceptionofthepolicyC) onlyatthetimethebeneficiaryispaidD) bothatthetimeoftheinsured'sdeathandattheinceptionofthepolicyAnswer:BQuestionStatus:PreviousEdition12) Whenmustaninsurableinterestlegallyexistinpropertyinsur

11、anceforaninsuredtoreceivepaymentforalossfromtheinsurerA) onlyatthetimeofthelossB) onlyattheinceptionofthepolicyC) onlyatthetimethelosssettlementprocesstakesplaceD) bothatthetimeofthelossandattheinceptionofthepolicyAnswer:AAfterloss.QuestionStatus:Revised13) Sue'sofficebuildingwasdamagedbyafireca

12、usedbyacarelesstenant.payingSueforherloss,theinsurancecompanysuedthetenanttorecoveritsThissuitisbasedontheprincipleofA) warranty.B) insurableinterest.C) utmostgoodfaith.D) subrogation.Answer:D14) AllofthefollowingarebasicpurposesofsubrogationEXCEPTA) toeliminateadverseselection.B) toholddownthecosto

13、finsurance.C) topreventaninsuredfromcollectingtwiceforthesameloss.D) toholdthenegligentpersonresponsibleforaloss.Answer:AQuestionStatus:PreviousEdition15) WhichofthefollowingstatementsaboutsubrogationistrueA) Itisusedprimarilyforlossespaidunderlifeinsurancepolicies.B) Itallowstheinsurertosueitsownin

14、suredwhoisnegligent.C) Theinsured'srighttocollectbenefitsmaybeforfeitediftheinsuredinterfereswiththeinsurer'srightsafteralossoccurs.D) Theinsurerisrequiredtoexerciseitssubrogationrights.Answer:CQuestionStatus:PreviousEditionQuestion Status: Previous Edition16) Theprincipleofutmostgoodfaithis

15、supportedbyallofthefollowinglegaldoctrinesEXCEPTA) representations.B) warranty.C) subrogation.D) concealment.Answer:CQuestionStatus:PreviousEdition17) WhatisthelegalsignificanceofamaterialconcealmentbyaninsuranceapplicantA) Thecontractisautomaticallyvoidedfromitsinception.B) Thecontractisvoidableatt

16、heinsurer'soption.C) Losspaymentsarereducedbythedegreeoftheconcealment.D) Theinsurerisimmediatelyentitledtoahigherpremium.Answer:BQuestionStatus:PreviousEdition18) WhatisthelegalsignificanceofamaterialmisrepresentationinaninsuranceapplicationA) Thecontractisautomaticallyvoidedfromitsinception.B)

17、 Thecontractisvoidableattheinsurer'soption.C) Losspaymentsarereducedbythedegreeofthemisrepresentation.D) Theinsurerisimmediatelyentitledtoahigherpremium.Answer:B19) AfalsestatementmadebyanapplicantforinsuranceisanexampleofaA) concealment.B) breachofwarranty.C) lackofofferandacceptance.D) misrepr

18、esentation.Answer:DQuestionStatus:PreviousEdition20) Whichofthefollowingstatementsaboutawarrantyinaninsurancecontractis(are)trueI) Itispartoftheinsurancecontract.J) .Statementsmadebyaninsuranceapplicantareconsideredwarrantiesratherthanrepresentations.K) IonlyL) IIonlyM) bothIandIIN) neitherInorIIAns

19、wer:AQuestionStatus:PreviousEdition21) Davidownsaliquorstoreinahigh-crimearea.Inordertoobtainareducedinsurancepremium,Davidpromisedtohaveaburglaralarmoperatingatthestorewhenthestorewasclosed.Thisagreement,whichwasincorporatedintotheinsurancecontract,isanexampleofaA) representation.B) unilateralcontr

20、act.C) contractofadhesion.D) warranty.Answer:DQuestionStatus:PreviousEdition22) WhichofthefollowingstatementsaboutofferandacceptanceforinsurancecontractsistrueA) Inpropertyandliabilityinsurance,agentstypicallydonothavetheauthoritytobindcoverage.B) Inlifeinsurance,theagentcanusuallyacceptanofferbyimm

21、ediatelybindingcoverage.C) Inpropertyinsurance,theofferandacceptanceareusuallyinwritingbutmaybeoral.D) Inlifeinsurance,theofferismerelythepromisetopaythefirstpremium.Answer:CQuestionStatus:PreviousEdition23) ChrisappliedforlifeinsuranceandpaidthefirstpremiumonMonday.Shewasgivenaninsurabilitypremiumr

22、eceiptwhichspecifiedthatcoveragewaseffectiveonthedateoftheapplicationorthedateofthemedicalexam,whicheverislater.ShetookthemedicalexamthefollowingThursday.Shewasfoundtobeinperfecthealth.OnwhichdaywashercoverageeffectiveA) onMonday,whenshecompletedtheapplicationandpaidthefirstpremiumB) onWednesday,two

23、daysaftercompletingtheapplicationandpayingthefirstpremiumC) onThursdaywhenshepassedthemedicalexamD) onSaturday,twodaysafterpassingthemedicalexamAnswer:CcontractQuestionStatus:PreviousEdition24) Whichofthefollowingstatementsaboutconsiderationinaninsuranceis(are)trueI) Theinsured'stotalconsiderati

24、onissubmissionofacompletedapplication.J) .Theinsurer'sconsiderationisthepromisetodothosethingsspecifiedinthepolicy.K) IonlyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:BQuestionStatus:PreviousEdition25) Acontractinwhichthevaluesexchangedarenotequalbecausechanceisinvolvediscalleda(n)A) contractof

25、adhesion.B) unilateralcontract.C) conditionalcontract.D) aleatorycontract.Answer:DQuestionStatus:PreviousEdition26) WhyareinsurancecontractssaidtobecontractsofadhesionA) Thevaluesexchangedbythepartiestothecontractarenotequal.B) Onepartywritesthecontract,andtheotherpartymustaccepttheentirecontractasw

26、ritten.C) Onlyonepartymakesalegallyenforceablepromise.D) Conditionsareplacedontheinsurer'spromisetoperform.Answer:BQuestionStatus:Revised27) WhydoestheinsuredgetthebenefitofthedoubtifaninsurancepolicycontainsanyambiguitiesoruncertaintiesA) becauseinsurancecontractsarealeatoryB) becauseinsurancec

27、ontractsareunilateralC) becauseinsurancecontractsareconditionalD) becauseinsurancecontractsarecontractsofadhesionAnswer:D28) WhycananinsurerrefusetopayaclaimifaninsuredfailstoabidebythepolicyprovisionsA) becauseinsurancecontractsarealeatoryB) becauseinsurancecontractsareunilateralC) becauseinsurance

28、contractsareconditionalD) becauseinsurancecontractsarecontractsofadhesionAnswer:CQuestionStatus:PreviousEdition29) Whichofthefollowingtypesofinsurancepoliciescanusuallybeassignedwithouttheinsurer'sconsentI. LifeinsuranceII. PropertyinsuranceA) IonlyB) IIonlyC) bothIandIID) neitherInorIIAnswer:AQ

29、uestionStatus:PreviousEdition30) WhatisthepracticaleffectofaninsurancepolicybeingaconditionalcontractA) Theinsurercanrefusetoapayclaimunlesstheinsuredhascompliedwithallpolicyprovisions.B) Theinsuredcanassignthepolicyonlywiththeinsurer'sconsent.C) Theinsurercansuetheinsuredforfailuretopayanypremi

30、ums.D) Theinsuredgetsthebenefitofthedoubtifapolicycontainsanyambiguitiesoruncertainties.Answer:AQuestionStatus:Revised31) WhatisthepracticaleffectofaninsurancepolicybeingacontractofadhesionA)Theinsurercanrefusetopayclaimsunlesstheinsuredhascompliedwithallpolicyprovisions.B) Theinsuredcanassignthepol

31、icyonlywiththeinsurer'sconsent.C) Theinsurercansuetheinsuredforfailuretopayanypremiums.D) Thepolicyisinterpretedintheinsured'sfavorifthepolicycontainsanyambiguitiesoruncertainties.Answer:DQuestionStatus:PreviousEdition32) Allofthefollowingstatementsabouttherulesgoverningagencyrelationshipsar

32、etrueEXCEPTA) Anagentmustbeauthorizedtoactonbehalfofaprincipal.B) Anagencyagreementmaygrantcertainpowerstotheagentaswellasdenyingtheagentotherpowers.C) Theprincipalisresponsiblefortheactsofagentsonlyiftheactsarecriminal.D) Knowledgeoftheagentispresumedtobeknowledgeoftheprincipalwithrespecttomattersw

33、ithinthescopeoftheagencyrelationship.Answer:CQuestionStatus:PreviousEdition33) ThevoluntaryrelinquishmentofalegalrightiscalledA) subrogation.B) adhesion.C) estoppel.D) waiver.Answer:DQuestionStatus:PreviousEdition34) Frankaskedhiscompany'semployeebenefitsdirectorifhisgrouphealthcoveragecouldbeco

34、nvertedtoindividualcoverage.Thebenefitsdirectorsaid,"Yes,youcanconverttoanindividualpolicy,andthecoverageisidenticaltoyourgroupcoverage."Frankquithisjobandconvertedtoanindividualpolicy.Sixmonthslaterhefiledaclaim.Hewasdismayedtolearntheconversionpolicywaslimitedcomparedtothegroupcoverage,a

35、ndhisclaimwasdenied.WhatlegaldoctrinewillallowFranktobringasuccessfullegalactionagainsthisformeremployerbecausehewasfinanciallyharmedduetohisreasonablerelianceuponarepresentationoffactA)adhesionB) concealmentC) estoppelD) subrogationAnswer:CQuestionStatus:Revised35) Janicepurchasedalivingroomsetfor$

36、1,000andinsuredthisfurnitureonanactualcashvaluebasis.Twoyearslaterthelivingroomsetwasdestroyedbyacoveredperil.Atthetimeofloss,thepropertyhaddepreciatedinvalueby25percent.Thereplacementcostofthefurnitureatthetimeoflosswas$1,200.Assumingnodeductible,howmuchwillJanicereceivefromherinsurerA) $900B) $950

37、C) $1,000D) $1,200Answer:AQuestionStatus:PreviousEdition36) JacobsoldhishousetoSheliafor$140,000incash.Jacob"threwin"insuranceonthehouseaspartofthedealanddidnotbothertellingtheinsurerthattherewasanewowner.FourmonthsafterSheliapurchasedthehome,awindstormdamagedtheroof.Whichofthefollowingleg

38、alcharacteristicsofinsurancecontractscouldtheinsurerusetolegallydenypaymentforthedamagetotheroofA) Insurancecontractsareunilateralcontracts.B) Insurancecontactsarecontractsofadhesion.C) Insurancecontractsarealeatorycontracts.D) Insurancecontractsarepersonalcontracts.Answer:DQuestionStatus:PreviousEd

39、ition37) Melody'scarwasdamagedwhenanotherdriverranastopsignandhithercar.Melodydecidedtocollectfromherowninsurerandtoletherinsurerrecoupthelosspaymentfromthenegligentdriverwhohither.WhatfundamentallegalprincipleisillustratedinthisscenarioA) theprincipleofutmostgoodfaithB) theprincipleofinsurablei

40、nterestC) theprincipleofsubrogationD) theprincipleofreasonableexpectationsAnswer:CQuestionStatus:PreviousEdition38) WhenBenappliedforlifeinsurance,hewasaskedontheapplicationifhesmokedorusedtobaccoproducts.Benanswered"No."Inreality,Bensmokestwopacksofcigarettesaday.Thepolicywasissuedatthe&q

41、uot;preferred,nonsmokerrate."IfBendies6monthsafterthepolicyisissued,uponwhatgroundswilltheinsurerbeabletolegallydenytheclaimA) warrantyB) misrepresentationC) waiverD) concealmentAnswer:BQuestionStatus:PreviousEdition39) Robinplanstoopenabarinahigh-crimearea.Shehaddifficultyobtaininginsurancefor

42、thebusiness.Shefoundaninsurerwillingtowritethecoverage,butonlyifRobinagreedtohaveasecurityalarmsysteminoperationatalltimeswhenthebusinessisclosed.Robin'spromisetohaveasecurityalarmsystemoperationalasaconditionofhavingtheinsurancecoverageinforceisaA) binder.B) warranty.C) waiver.D) deductible.Ans

43、wer:BQuestionStatus:PreviousEdition40) DaveisanagentforEasyPayInsurance.EasyPayinsuresonlythehighest-qualityapplicants.Davewantedtoearnmorecommissions,sohesoldsomepoliciestoapplicantsheknewwerebelow-averagerisks.Whenthesepolicyownersstartedfilingclaims,EasyPaytriedtodenytheclaimsstatingthatDavehadno

44、tactedappropriately.WhichgeneralruleofagencymakesEasyPayresponsiblefortheclaimsofthehigher-than-averageriskpolicyownersA) Thereisnopresumptionofanagencyrelationship.B) Agentsshouldbecompensatedbasedonthequalityofthebusinesstheygenerate.C) Aprincipalisresponsiblefortheactsofitsagentswhoareactingwithi

45、nthescopeoftheirauthority.D) Anagentmusthaveauthoritytorepresenttheprincipal.Answer:CQuestionStatus:PreviousEdition41) Ted'sinsuranceclaimwasdeniedbyXYZInsuranceCompany.WhenTedinquiredwhytheclaimwasdenied,hewastoldto,"Readtheexclusiononpage5ofthepolicy."Tedreadtheexclusion.Inhisopinion

46、,theexclusionwaspoorlywordedandvague.IfacourtoflawagreeswithTed'sassessmentoftheexclusion,TedmaystillbeabletohavehisclaimpaidbytheinsurerbecauseinsurancecontractsareA) personalcontracts.B) unilateralcontracts.C) aleatorycontracts.D) contractsofadhesion.Answer:DQuestionStatus:PreviousEdition42) M

47、arkownsabar.ThebarhasabackroomwhereMarkhassomeslotmachines.Markletssomeofhispatronsplaythemachines,andMarkkeepsanyprofits.ThistypeofgamblingisillegalwhereMarklives.Markwantedtopurchaseinsuranceincasehisslotmachineswereconfiscatedbythepolice.Suchaninsurancecontractwouldnotbeenforceable.Whichrequireme

48、ntneededtoformavalidinsurancecontractismissingA) considerationB) offerandacceptanceC) legalpurposeD) competentpartiesAnswer:CQuestionStatus:PreviousEdition43) Whichdistinctlegalcharacteristicofinsurancecontractsstatesthatonlytheinsurer'spromisetoperformislegallyenforceableA) contractsofadhesionB

49、) unilateralcontractsC) aleatorycontractsD) personalcontractsAnswer:BQuestionStatus:PreviousEdition44) Somecourtshaveruledthatanalternativeto"replacementcostlessdepreciation"shouldbeusedtodeterminetheactualcashvalueofapropertyloss.Underthisalternative,thevalueofpropertylostisdeterminedbythepriceawillingbuyerwouldpayawillingseller