1. C HAPTER 18-1 & 18-2 R EVIEW Erin Brink 10 MC 5 FIB

2. MC #1 The party who agrees to indemnify is the a) Insured b) Insurer c) Beneficiary d) Indemnifier

3. MC #2 The maximum amount that can be paid if the harm a person is insured against occurs a) Premium b) Insurable interest c) Face value d) Endorsement

4. MC #3 Another name for an endorsement is a) Rider b) Exclusion c) Risk d) Floater

5. MC #4 The beneficiary is a) The party that makes good a loss b) The party that is covered or protected c) The writer of the policy d) The recipient of the amount to be paid

6. MC #5 Another name for or variation of “whole life insurance” is a) Ordinary life insurance b) Straight life insurance c) Limited pay life d) All of the above

7. MC #6 Which of the following is not a type of casualty insurance? a) Automobile insurance b) Disability insurance c) Marine insurance d) Burglary/Robbery insurance

8. MC #7 Which of the following is the definition of an insurable interest? a) The possible loss arising from injury, death, or damage to property from a specified peril b) The potential to sustain loss if the insured property or person is harmed c) The contractual agreement that protects against loss d) The consideration for a contract of insurance

9. MC #8 Which of the following is not a type of life insurance? a) Term b) Whole c) Endowment d) Social

10. MC #9 The type of insurance that protects against financial loss due to dishonesty is a) Social Insurance b) Larceny Insurance c) Fidelity Insurance d) Liability Insurance

11. MC #10 What is another name for comprehensive insurance? a) Collision Insurance b) Other than collision insurance c) No-fault insurance d) Coinsurance

12. F ILL IN THE BLANK #1 A __________ is either a fire started by accident, negligence, or a deliberate act not controlled by the insured OR a friendly fire that has become uncontrollable.

13. F ILL IN THE BLANK #2 Exceptions to an insurance policy are known as ___________.

14. F ILL IN THE BLANK #3 ___________ insurance requires that parties to an automobile be indemnified by their own insurance company regardless of who is at fault.

15. F ILL IN THE BLANK #4 A person who is in, upon, entering, or leaving a vehicle is known as a(n) ___________.

16. F ILL IN THE BLANK #5 ___________ is a clause in a fire insurance policy that requires the insured to maintain coverage equal to a certain percentage of the total current value of the insured property.

17. ANSWERS MC 1. B 2. C 3. A 4. D 5. D 6. C 7. B 8. D 9. C 10. B Fill in the Blank 1. hostile fire 2. exclusions 3. No-fault 4. occupant 5. Coinsurance