True/False
Indicate whether the sentence or statement is true
or false.
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1.
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The
party who pays the premiums for an insurance policy is the underwriter.
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2.
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An
insurance broker ordinarily works for the insurance company.
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3.
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The
consideration paid to an insurer to obtain an insurance policy is the premium.
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4.
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Insurance is an arrangement for transferring or allocating risk.
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5.
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Insurance companies are prohibited from engaging in the practice of risk
management.
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6.
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A
sibling may have an insurable interest in his or her sibling's life.
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7.
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A
person has an insurable interest in property if he or she would sustain a pecuniary loss from the
property's destruction.
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8.
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The
states regulate the insurance industry.
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9.
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An
insurance application is part of the insurance contract.
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10.
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Once
an insurance agent accepts a payment from an applicant, the insurance company must issue a
policy.
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11.
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A
coinsurance clause provides that two or more people will be covered by the same life insurance
policy.
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12.
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Under
an antilapse clause, an insurance policy will lapse only if no premium is paid on the date
due.
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13.
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Arbitration of disputes over insurance claims is often provided for in
policies.
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14.
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Misrepresentation on an insurance application is a ground for canceling the
policy.
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15.
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Once
an insurance policy is issued, the insured may not cancel the policy without the written permission
of the insurance company.
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16.
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An
insurer can cancel an insurance policy at any time for any reason.
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17.
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No
insurance can be canceled for nonpayment of premiums.
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18.
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Term
life insurance provides life insurance for a specified term with no cash surrender
value.
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19.
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The
standard fire insurance policy covers losses to the insured as a result of fire.
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20.
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A
homeowners' policy does not cover the contents of the insured's home.
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