Author: Anonymous

Five Below Zero is a new ski resort in Colorado. Five Below Zero is concerned that an abnormally warm winter will prevent the accumulation of snow needed to have a profitable ski season. Five Below Zero purchased a contract that will pay a lump sum if the daily high temperature exceeds 30 degrees for more than 12 days between January 1st and March 31st. The contract Five Below Zero purchased is called a(n):

Which of the following statements about Lloyds of London (are) true?  I. The majority of the business underwritten by Lloyds of London is for unusual risks, such as valuable race horses and professional athletes. II. Lloyds of London is a group of underwriters who underwrite insurance, not an insurance company. 

Jill Parks and Robert Evans jointly own a grocery store. Jill and Robert are both named insureds on the property insurance covering the store, but Jill is the first named insured. Which of the following statements is true with regard to Jill’s status as the first named insured?   

The main goal of enterprise risk management is to support business objectives by managing risks. (select if True or False)

Taylor Tobacco Company is concerned that the company may be held liable in a court of law and ordered to pay a large damage award to a smoker harmed by the company’s cigarettes. The characteristics of the judicial system that increase the frequency and severity of loss are known as:

If the primary insurance coverage limit was $50,000 and the excess policy covered another $25,000, a claim of $60,000 would result in a $50,000 payout from the primary insurance and $10,000 from the excess policy. This is an example of primary and excess insurance.

Part C: Scenario-Based Questions (1/5 Questions) A factory fire halts production for two weeks. What insurance coverage would be most relevant?

Estoppel is the loss of a legal defense because of previous actions that are now inconsistent with that defense.

In life and health insurance, a __________ is a provision that amends or changes the original policy.

Homeowners insurance policies usually cover resident relatives of the named insured who are under age 24 and who are full-time students away from home. Under the homeowners policy, these full-time students are considered;