Which of the following would NOT be accomplished with the purchase of an insurance policy?

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Which of the following would NOT be accomplished with the purchase of an insurance policy?

A) Greater peace of mind
B) Risk is eliminated
C) Payment made for covered losses
D) Uncertainty is reduced

Answer: B) Risk is eliminated

Nature of Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

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James is the insured on a life insurance policy where his age was misstated on the application. Which of the following is CORRECT regarding the death benefit amount?

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A domestic insurer issuing variable contracts must establish one or more
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The voluntary relinquishment of a legal right is called
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