33) The act of forbearance of some deed at the request of the guarantor is usually consideration to the guarantor in a contract of guarantee. a. True b. False 34) A guarantee occurs when a third party agrees to pay off a loan made to another. a. True b. False 35) Exemption clauses in insurance contracts are strictly interpreted by the courts. a. True b. False
33) The act of forbearance of some deed at the request of the guarantor is usually consideration to the guarantor in a contract of guarantee.
a. True
b. False
34) A guarantee occurs when a third party agrees to pay off a loan made to another.
a. True
b. False
35) Exemption clauses in insurance contracts are strictly interpreted by the courts.
a. True
b. False
36) An offer to purchase life insurance is accepted when the agent provides the applicant with an insurance binder.
a. True
b. False
37) A comprehensive general insurance policy is one that covers most types of damage or loss to an insured's property as well as providing third party liability.
a. True
b. False
38) Subrogation allows an insurance company to recover its loss from the person(s) responsible without having to pay the insurance proceeds to the insured.
a. True
b. False
39) An insurance contract is one that is usually said to require utmost good faith on the part of the parties.
a. True
b. False
40) Where certain terms are changed in a policy, the document that records the changes is not an endorsement.
a. True
b. False
41) If an insured has been negligent, the insurance policy will generally be void.
a. True
b. False
42) The right of subrogation does not apply in all cases, but it is presumed to apply if it is not expressly excluded.
a. True
b. False
43) To be entitled to the proceeds of an insurance policy, a person must have an economic interest in the property that is the subject matter of the insurance policy.
a. True
b. False
44) Joe obtains a loan from a bank, and his wife, Mary, gives a personal guarantee as security. The guarantee is expressed as being a continuing guarantee. Two months later, Joe also obtains a line of credit from the same bank. This time Mary does not sign a guarantee. Mary is happy because she believes that the bank will not come after her if Joe defaults on the line of credit. Is Mary's belief true or false?
a. True
b. False
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