CHAPTER 20

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1. An insurance policy is

the part of a loss for which the insured is responsible
the right of the insurer to recover the amount paid on a claim from a third party who caused the loss
a contract of insurance
the obligation on the insurer to make good the loss
the price paid for insurance coverage

2. The premium is

the part of a loss for which the insured is responsible
the right of the insurer to recover the amount paid on a claim from a third party who caused the loss
a contract of insurance
the obligation on the insurer to make good the loss
the price paid for insurance coverage

3. The deductible is

the part of a loss for which the insured is responsible
the right of the insurer to recover the amount paid on a claim from a third party who caused the loss
a contract of insurance
the obligation on the insurer to make good the loss
the price paid for insurance coverage

4. Indemnity is

the part of a loss for which the insured is responsible
the right of the insurer to recover the amount paid on a claim from a third party who caused the loss
a contract of insurance
the obligation on the insurer to make good the loss
the price paid for insurance coverage

5. Subrogation is

the part of a loss for which the insured is responsible
the right of the insurer to recover the amount paid on a claim from a third party who caused the loss
a contract of insurance
the obligation on the insurer to make good the loss
the price paid for insurance coverage

6. Fire insurance is a form of

casualty insurance
life insurance
disability insurance
liability insurance
property insurance

7. Coverage for losses resulting from negligently providing professional services is provided by

disability insurance
errors and omissions insurance
property insurance
life insurance
collision insurance

8. The insured must disclose all facts material to the risk to the insurer because

they affect the insurer's decision on whether to provide insurance coverage
they affect the amount of the premium the insurer will charge
information provided to insurers is recorded at a public registry and provides actual notice to anyone who might be affected
a & b
all of the above

9. The requirement of an insurable interest

establishes the minimum level of the premium for specified insurance coverage
establishes the minimum level of recovery in the event of an insured loss
establishes the maximum rate of interest chargeable for unpaid insurance premiums
prevents buying insurance against losses caused by others
prevents buying insurance against losses incurred by others

10. The right of _______ gives an insurance company that has paid the cost of repairing an insured's car, a right to sue the negligent driver of the other car to recover this cost.

indemnity
subrogation
insurance
recovery
deductibility