Exam 500323RR Insurance

1.     Which of the following is true of survival statutes? 

 

 

A.     It preserves the right to bring a lawsuit for personal injuries, no matter     what caused the death(s). 

 

 B. It can only be brought     by family members who have lost the support of the deceased. 

 

 C. It allows suits to be     brought for libel after the death of a defamed person. 

 

 D. It preserves the right     to bring a lawsuit only if the death is caused by negligence of the     defendant. 

 

2.   Stanley falls into the low-income group. Which       of the following healthcare plans can Stanley opt for? 

 

 

A. Medicaid 

 

 B. Medicare 

 

 C. Mediclaim 

 

 D. Long-term care         insurance 

 

 

3.     Joseph owes $15,000 to Carmel Enterprises, $8,500 to Vulcan Co.,   $11,000 to David, and $11,500 to Sigma Enterprises. He has not been making   payments on these debts for the past 20 months. Which of these creditors can   force Joseph into involuntary bankruptcy? 

 

 

 A. Carmel Enterprises and     David only 

 

 B. Sigma Enterprises,     David and Vulcan Co. only 

 

 C. Carmel Enterprises,     Sigma Enterprises, David, and Vulcan Co. 

 

 D. Carmel     Enterprises only 

 

4.   The Daubert case involved juriscience, the       intersection of law and science, to help the court determine a question       of real or 

 

 

A. causation in fact. 

 

 B. vicarious         liability. 

 

 C. duty. 

 

 D. proximate cause. 

 

5.   Sally and Ethel have a falling out. Sally,           to cause distress to Ethel and her husband Elmer, posts on the           Internet that Elmer is having an affair with a college student, even           though Sally knows that what she is saying isn’t true. Which of the following           statements is true?

 

 

 A. Ethel has a             claim for defamation against Sally. 

 

 B. Sally has a             claim for intentional infliction of emotional distress. 

 

 C. Sally has a             claim for defamation against Ethel. 

 

D. Elmer has a claim for defamation against             Sally. 

 

6.   Robert goes to the               liquor store, pulls out what appears to be a gun, and says,               “Give me all your money, or I’ll kill you.” The clerk               gives Robert all the money in the register. As Robert leaves the               liquor store, he spots a policeman across the street and begins               to run. At that moment, the clerk comes out of the store and               shouts to the policeman that he’s just been robbed. The policeman               tackles Robert and discovers that Robert’s gun was actually just               a water pistol. Which of the following statements is true?

 

 

 A. Robert                 isn’t guilty of robbery because he didn’t use force to                 accomplish the theft. 

 

 B. Robert is                 guilty of robbery because he committed theft. 

 

 C. Robert                 isn’t guilty of robbery because the gun wasn’t capable of                 causing harm. 

 

D. Robert is guilty of robbery because he                 used the threat of force to commit a theft. 

 

7.     A/an _______ will provide temporary insurance coverage until the   policy is formally accepted. 

 

 

 A. warranty 

 

 B. premium 

 

 C. binder 

 

 D. adhesion contract 

 

8.   Of the groups listed below, only _______ can       take advantage of Chapter 13 provisions. 

 

 

 A. partnerships 

 

 B.         self-employed people 

 

 C. corporations 

 

 D. educational         institutions 

 

9.   John visits Photo-Heaven to have his picture           taken. While he is waiting for the photographer in the reception           area, he notices one of the chairs has yellow caution tape around it           with a sign that says “Broken Chair.” John has been looking           for a chair just like this one, so he removes the caution tape to sit           in the chair and see how it feels. The chair collapses, and John           falls to the floor. John goes to the hospital, where the doctor           treats him for injuries. If John files suit against Photo-Heaven for           negligence, he will most likely lose because 

 

 

A. he assumed the risk because he knew the             chair was broken. 

 

 B. Photo-Heaven             didn’t owe John a duty. 

 

 C. he didn’t             suffer a legally recognizable injury. 

 

 D. Photo-Heaven’s             negligence didn’t cause John’s injury. 

 

10.   Sally goes through               Edith’s purse when Edith leaves the room. Edith returns and               catches her in the act. Edith can sue for which type of invasion               of privacy? 

 

 

 A. Creating a                 false light 

 

 B. Exploitation                 

 

 C. Revelation                 of confidential records 

 

                 D. Intrusion 

 

11.   Tom is a consumer               with regular income who’s able to pay more than 25% of his debt               over the next three years but probably can’t pay it all. If he               qualifies, the best chapter in bankruptcy for Tom is               Chapter 

 

 

 A. 7. 

 

 B. 12. 

 

                 C. 13. 

 

 D. 11. 

 

12.   Peter lost control of               his car and drove it though his neighbor, Clyde’s, fence. If               Clyde were to bring a claim against Peter for the damage to the               fence, what type of insurance would Peter need to cover the               damage? 

 

 

 A. No-fault                 insurance 

 

 B. Collision                 insurance 

 

C. Property damage liability insurance 

 

 D. Homeowner’s                 insurance 

 

 

13.   Joe made an agreement               with Auto Insurance Co. not to use his van for commercial               business purposes when he purchased auto insurance. Joe had an               accident while delivering pizzas for Bigger Pizza, Inc. For which               type of violation will Joe not be covered under his insurance? 

 

 

                 A. Breach of warranty 

 

 B. Fraudulent                 concealment 

 

 C. Misrepresentation                 

 

 D. Concealment                 

 

14.   Terry parks his                   car outside the restaurant and goes inside to eat. When he                   returns, his car has been damaged by vandalism. Terry’s                   insurance company will pay for the repairs if Terry has                   _______ insurance. 

 

 

 A. collision 

 

B.                     comprehensive 

 

 C. no-fault 

 

 D. liability 

 

15.   Zeke takes his gun to               the mall looking for Fred. Zeke spots Fred, points the gun at               Fred, and says, “I’m going to kill you.” He does. Zeke               is charged with homicide. His defense is that he had no motive to               kill Fred. The prosecution admits that it can’t prove that Zeke               had any motive and that in fact Zeke loves Fred. Which of the               following statements is true?

 

 

 A. Zeke will                 be convicted of a lesser degree of homicide due to the                 prosecution’s failure to demonstrate motive. 

 

 B. Zeke’s                 state of mind was that of recklessness. 

 

C. Zeke will be convicted of homicide. 

 

 D. Zeke’s                 motive is a necessary element of any crime. 

 

16.   Victor applies                   for life insurance. On the application, when asked if he had                   ever been diagnosed with cancer, he falsely said no. Later                   Victor died, and the insurance company found out about the                   previous diagnosis of cancer and refused to pay. What were                   the most likely grounds? 

 

 

 A. Estoppel 

 

 B. Failure to pay premiums 

 

C.                     Misrepresentation 

 

 D. Concealment 

 

17.   Sear Enterprises wants to                       continue in business, but needs some relief from                       creditors’ claims. Sear Enterprises should consider                       filing under Chapter _______ of the Bankruptcy Code. 

 

 

 A. 12 

 

B.                         11 

 

 C. 13 

 

 D. 7 

 

18.   Which of                           the following is true of coinsurance? 

 

 

 A.                             It allows the insured to pay an extra premium                             initially in exchange for a guaranteed option to                             buy more insurance at certain specified times                             later. 

 

B. It’s a provision under                             which the insurer and the insured share costs,                             after the deductible is met, according to a specific                             formula. 

 

 C.                             It’s rarely found in property insurance policies. 

 

 D.                             It excuses the insured from paying premiums if he                             or she becomes disabled. 

 

19.   Evan gives Zeke $200 to                               buy tickets for Evan and his girlfriend to attend                               a rock concert. Instead, Zeke spends the money to                               purchase video games. Evan finds out and wants to                               know if Zeke can be charged with a crime. Zeke                               has committed 

 

 

                                 A. no crime, but can be sued in civil court. 

 

B. embezzlement. 

 

                                 C. robbery. 

 

                                 D. larceny. 

 

20.   Vernon owns a                               family-run farming business. He earned $100,000                               in the current financial year. He owes $70,000                               that he cannot pay. This debt forms a part of his                               farm expenses to creditors, but he wants to keep                               the business running. Which type bankruptcy                               should Vernon file for? 

 

 

                                 A. Chapter 7 and Chapter 12 

 

                                 B. Chapter 11 and Chapter 7 

 

                                 C. Chapter 7 only 

 

D. Chapter 12