1. Insurance Fundamentals
Chapter 18

2. True Or False
Floater refers to protection that follows the property regardless of location.

3. Answer : true

4. True or False
No-Fault Insurance requires that parties to an automobile accident be indemnified by their own insurance company.

5. Answer :True

6. True or False
Medicare provides coverage primarily for those age 62 and over.

7. Answer: false
The correction would be 65 and over

8. True or false
The face value of a policy is the stated minimum amount that could be paid if the harm a person is insured against occurs.

9. Answer: false
The face value is the maximum they will pay.

10. True Or false
An incontestability clause is usually included in a life insurance policy.

11. Answer : true

12. Multiple Choice
The Stated maximum amount of money that can be paid on an insurance policy is said to.
Benefit
Endorsement
Face value
Premium

13. Answer: C

14. Liability insurance would be classified as a form of.
Causality insurance
Fidelity insurance
Inland marine insurance
Social insurance

15. Answer : A

16. A hostile fire is.
A fire started by accident or negligence
A fire started by a deliberate act uncontrolled by the insured
A friendly fire that become uncontrollable
All of these

17. Answer : D

18. Medicare
Is a type of auto insurance rider covering injured passengers
Provides both medical and hospital insurance for Americans older than 65
Provides medical coverage only for the injured passengers of the other auto
Both A and C

19. Answer: B

20. Sue Anne owns several pieces of expensive jewelry
Sue Anne owns several pieces of expensive jewelry. These items are not typically covered in a standard home owners' insurance to meet her special insurance need?
Endorsement
Coinsurance
Rider
Both A and C

21. Answer:D

22. Completion
Celia recently Purchased a seagoing yacht. Before she takes the vessel out into open waters, she should purchase ________ insurance

23. MARINE

24. The written contract for insurance that Katana receives from her insurance company is known as a

25. Policy

26. If Joaquin wants to purchase relatively inexpensive life insurance coverage on himself until his boy graduates college in four years, He will probably buy a ___________ Life insurance policy.

27. TERM

28. The type of insurance that provides protection against loss in the event of being involved in an automobile accident with a driver who has insurance but the coverage of which is not sufficient to pay for the full damage amount is called _______ coverage

29. Underinsured motorists

30. ___________ insurance requires that parties to an automobile accident be indemnified by their own insurance company regardless of who is at fault.

31. No- Fault