LML4805 – INSURANCE LAW EXAM
PACK QUESTIONS AND ANSWERS
2026 COMPLETE EXAM PREP WITH
VERIFIED SOLUTIONS
◉ Beneficiary.
Answer: Recipient of the amount to be paid under an insurance policy
◉ Casualty insurance.
Answer: Provides coverage for losses resulting from accident, chance, or
negligence
(3 main types: auto, liability & theft)
◉ Coinsurance.
Answer: Clause in a fire policy that requires the insured to maintain
coverage equal to a certain percentage of the total current value of the
insured property
◉ Collision insurance.
Answer: Protects against direct and accidental damage to the vehicle
caused by colliding with another object such as a tree or bridge
abutment, and overturning.
◉ Disability Insurance.
, Answer: Coverage for a severe, long-lasting impairment that prevents
the eligible person from being able to do "any substantial work."
◉ Comprehensive insurance.
Answer: Insurance that covers damage such as fire, theft, water,
vandalism, hail, and glass breakage to a vehicle
◉ Endorsements.
Answer: Attachment to the policy to provide for special and individual
customized needs such as theft of art or jewelry.
Also known as riders,
◉ exemption clause.
Answer: a term of an insurance contract where one party tries to limit or
eliminate obligations that would otherwise be present
◉ Face Value.
Answer: Maximum amount that could be paid from the loss a person is
insured against happens.
◉ Fidelity / Surety Bonding Insurance.
Answer: Provides coverage against financial loss caused by dishonesty,
such as embezzlement or failure of one person to perform a legal
obligation to another, such as constructing a building as promised.
PACK QUESTIONS AND ANSWERS
2026 COMPLETE EXAM PREP WITH
VERIFIED SOLUTIONS
◉ Beneficiary.
Answer: Recipient of the amount to be paid under an insurance policy
◉ Casualty insurance.
Answer: Provides coverage for losses resulting from accident, chance, or
negligence
(3 main types: auto, liability & theft)
◉ Coinsurance.
Answer: Clause in a fire policy that requires the insured to maintain
coverage equal to a certain percentage of the total current value of the
insured property
◉ Collision insurance.
Answer: Protects against direct and accidental damage to the vehicle
caused by colliding with another object such as a tree or bridge
abutment, and overturning.
◉ Disability Insurance.
, Answer: Coverage for a severe, long-lasting impairment that prevents
the eligible person from being able to do "any substantial work."
◉ Comprehensive insurance.
Answer: Insurance that covers damage such as fire, theft, water,
vandalism, hail, and glass breakage to a vehicle
◉ Endorsements.
Answer: Attachment to the policy to provide for special and individual
customized needs such as theft of art or jewelry.
Also known as riders,
◉ exemption clause.
Answer: a term of an insurance contract where one party tries to limit or
eliminate obligations that would otherwise be present
◉ Face Value.
Answer: Maximum amount that could be paid from the loss a person is
insured against happens.
◉ Fidelity / Surety Bonding Insurance.
Answer: Provides coverage against financial loss caused by dishonesty,
such as embezzlement or failure of one person to perform a legal
obligation to another, such as constructing a building as promised.
