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 aspecific                             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