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Terry places a bet on the outcome of a basketball game.
Margaret's dog is temperamental. She's afraid that it will bite a neighbor someday and she will be held responsible.
Sam transfers all of his retirement funds into a stock that he expects to rise in value.
Cindy, along with 32 others, puts $100 into an Indy 500 race pool at work. The person holding the name of the winning driver will win the entire $3,300.
Prohibits insurance with extremely high premiums.
States that there must be a narrow spread of risk for insurance to be effective.
States that the more examples used to develop a statistic, the more reliable the statistic will be.
Requires all members of society with insurance exposures to purchase insurance.
LaTonya's son, who would like to inherit the home some day
First City Bank
Both parties are required to provide services for the other.
One party draws up the contract provisions, and the other party adheres to the terms.
The contract can be revoked by any party at any time for any reason.
A contract that is formed without any consideration by either party.
After a loss, an insured should be restored to approximately the same condition that existed before the loss.
Every insured will receive full compensation for all losses in all cases.
When property is damaged or destroyed, the insurance company must pay the full replacement cost.
In the case of bodily injuries, liability coverage must be available without regard to any policy exclusions.
Stated benefits and the dates on which they are to be paid
A promise to pay for certain losses if they occur
A promise to be conscientious about the customer's situation
Utmost good faith
Is managed by an attorney-in-fact.
Pays dividends to its stockholders.
Is owned by its insureds.
Is a voluntary association of individuals that shares in writing insurance contracts for a variety of risks.
Represents a single insurance company.
Works for a direct writer.
Is an independent businessperson.
Does not collect commissions.
Issue or countersign policies.
Sign an application.
State insurance department
Interstate Commerce Commission
Insurance Services Office
Failure of fiduciary responsibility.
The insurance industry is regulated exclusively by the federal government.
The insurance industry is very loosely regulated.
The state insurance department is responsible for controlling insurance matters within the state.
The state insurance department serves only the interests of the insurance industry.
Making appropriate coverage recommendations to prospective customers
Writing the provisions of a customer's policy
Helping prospective customers complete the application
Assuring that customers understand the coverage they are purchasing
No, that would be a violation of the principle of open competition.
No, they can only require that forms and rates be subject to prior approval.
No, insurers can always begin using forms and rates as soon as they are properly filed with the state.
Yes, some states have mandatory forms or rates for certain coverages.
They guarantee that a policy will be issued.
They can be issued by insurance companies, but not agents.
They expire on the effective date of the policy to which they apply, or on the expiration date of the binder if the policy is not issued.
They show an intent to consider issuing insurance, but do not include any commitment to provide coverage.
An evaluation of the characteristics of the individual risk
Manual rates developed from statistical data
Calculation and evaluation of the insured's past loss experience
Loss information reported by other states
Concern material facts.
Both A and B are correct.
Neither A nor B are correct.
Certificate of insurance
Prenotification is required for both regular and investigative reports.
Postnotification is required when insurance coverage is denied because of adverse information in a credit report.
An agent who obtains information from a reporting agency under false pretenses can be sent to jail and fined.
Consumers have the right to challenge information in investigative reports and to have incorrect information removed.
Pro rata cancellation
Both Walt and Joanna
First State Bank
No benefit to bailee
Duties after loss
Losses to personal property
The cause of a direct loss
A type of loss that results from a direct loss
An insignificant property loss
Not a type of property loss
The mortgagee might have to pay the premium if the insured doesn't.
The mortgagee can file a proof of loss when the insured fails to do so to protect its rights under the policy.
The mortgagee might have coverage under the policy even if something the insured does causes a claim to be denied.
The mortgagee has no insurable interest in the covered property.
A criminal act
An intervening cause
Legal duty owed and breach of duty
Assumption of risk
Statute of limitations
. Martin buys a tanning bed for his home. Although he follows the manufacturer's directions to the letter, he is severely burned after spending five minutes in the bed.
Jane goes to a hair salon to have her hair colored. The hairdresser mixes the color improperly and dyes Jane's hair purple.
Rosa is injured when her car is struck from behind while she is stopped at a red light.
Ben turns a corner too fast and strikes Reba's car, which was illegally parked in a fire lane.
Lee cannot recover any damages from Pat.
Lee's damages will be reduced to the extent of her own liability for the loss.
Lee can recover the full amount of the loss from Pat.
Lee might only recover 50% of the damages she claims regardless of her degree of negligence.
The damage to Elaine's car only
The damage to Elaine's car and Elaine's medical bills only
The damage to George's and Elaine's cars only
The damage to George's and Elaine's cars, and Elaine's medical bills
A mobile home that is not permanently located
A single family home that is under construction
A three-unit townhouse
A home that is rented to another person
A pet poodle
A pool table
Basic coverage for the dwelling and broad coverage for personal property
Broad coverage for the dwelling and basic coverage for personal property
Open peril coverage for the dwelling and broad coverage for personal property
Open peril coverage for both the dwelling and personal property
Fire department service charge
All Dwelling forms
The Basic form only
The Broad and Special forms
The Special form only
A storage shed 100 feet in back of the insured's dwelling where she keeps various yard tools
A detached garage that has been altered to house a manufacturing operation
A stack of lumber placed at the edge of the insured's property that will be used to construct a storage shed
A water heater located in the insured's attached garage
While the insured is on vacation, a power failure that occurs away from the insured's home causes the electricity to go off in the insured's neighborhood for 10 hours. As a result, large amounts of food stored in a freezer are ruined.
When Languid Lake overflows, the first floor of the insured's home is flooded, causing extensive damage.
Following a fire, the insured suffers an additional loss because a city ordinance requires that he replace his frame dwelling with more expensive fire-resistant materials.
An earthquake causes a fire that destroys the insured's home.
Additional living expenses
Personal property coverage
Fair rental value coverage
A $400 handgun taken from a bureau in her home
Theft of personal property owned by a boarder who rents a room in Myrtle's home
Two credit cards taken from her desk in her home
A tape player removed from the dashboard of her car that was parked in her garage
Home that is rented to another person
Home occupied by the insured and two boarders
Home that is owned and occupied by the insured
the property coverage varies in each form.
the property coverage is the same in each form.
the liability coverage varies in each form.
the liability coverage is the same in each form.
HO-2 and HO-3
All forms except the HO-8
Animals, birds, and fish
Injury to an insured is not covered.
The insured does not have to be legally liable for coverage to be available.
Injuries that occur off the insured location are never covered.
Medical payments are covered only if the expenses are reported within six months of the occurrence.
It covers damages that the insured becomes legally obligated to pay because of bodily injury or property damage.
The insurer will not defend liability claims brought against the insured that are groundless or false.
It applies to the insured's personal, nonbusiness activities that occur anywhere.
It covers damages resulting from intentional acts of an insured.
It only covers the insured's personal property while it is at the residence premises.
At the insured's request, coverage applies to a guest's property while the guest is in the insured's residence.
Property normally kept at a residence other than the residence premises is covered for 10% of the Coverage C limit or $1,000, whichever is greater.
There is no coverage for property being moved from the residence premises to a new principal residence.
The company must wait until the policy has been in force for 60 days before it may cancel.
The company must give the insured 30 days written notice of cancellation.
The company must give the insured 10 days written notice of cancellation.
Under no circumstances; a policy cannot be cancelled because of material misrepresentation by the insured.
A 30-foot boat powered by a 25 horsepower outboard engine
A 28-foot sailboat
A 28-foot inboard motorboat
A 25-foot boat powered by a 30 horsepower outboard engine
Collision Coverage of Part DCoverage for Damage to Your Auto
Other Than Collision Coverage of Part DCoverage for Damage to Your Auto
Part ALiability Coverage
Part CUninsured Motorists Coverage
McGuffin's Linen Service Company
John and Suzette Oglesby, a married couple who live together
Don Wilson's 16-wheel big rig, which he owns
Pickup truck used on the insured's farm
Panel truck used to make deliveries for the insured's small manufacturing operation