Author: Anonymous

Which of the following $100,000 whole life insurance policies, issued by the same company to a man age 32, would require the highest first-year premium?

The insurance company’s options for settling a collision loss to a covered auto under the PAP include which of the following?I.Pay the loss in money.II.Repair or replace the damaged auto.

Which of the following statements about second-to-die life insurance is (are) true?I.The insurance is a form of endowment coverage. II. The premium is lower than the combined cost of purchasing a life insurance policy on each insured.

Which of the following statements about the payment of defense costs by the PAP is (are) true?I.They are paid in addition to the policy limits.II.They are payable even after the limit of liability is exhausted.

Which of the following statements about individual disability income policies that use a two-part definition of total disability is (are) true?I.During the initial period of disability, the insured must be unable to perform the duties of any gainful occupation.II.After the initial period of disability, the insured must be unable to perform the duties of any occupation for which he or she is reasonably fitted by education, training, and experience.

Which of the following statements about yearly renewable term insurance is (are) true?I.It requires evidence of insurability for renewal.II.It is most appropriate when an insured needs lifetime protection.

Tony has an unendorsed Personal Auto Policy which provides medical payments coverage. Under which of the following circumstances would the injured person be eligible for benefits under Tony’s policy?I.A friend in the car is injured while Tony is driving a covered auto.II.A passenger on a motorcycle driven by Tony is injured when Tony hit another vehicle.

Which of the following statements about individual disability income policies that use a two-part definition of total disability is (are) true?I.During the initial period of disability, the insured must be unable to perform the duties of any gainful occupation.II.After the initial period of disability, the insured must be unable to perform the duties of any occupation for which he or she is reasonably fitted by education, training, and experience.

Gary purchased a Personal Auto Policy (PAP) that included collision coverage. Gary lost control of his vehicle on an icy road. He slid across the center line into oncoming traffic. Another vehicle hit his car, causing severe damage to it. Ignoring any deductible, what is the insurer’s liability for damage to Gary’s car?

Which of the following statements about second-to-die life insurance is (are) true?I.The insurance is a form of endowment coverage. II. The premium is lower than the combined cost of purchasing a life insurance policy on each insured.