Question 1

Your home insurance policy has a $250 deductible.If a small fire causes $600 damage to your home,what amount of the claim would the insurance company pay?

Accepted Answer

A)  $250
B)  $350
C)  $450
D)  $600
E)  Not able to determine from this informationF) A) and B)
G) A) and E)

Question 2

Which of the following would not be considered personal property under a typical homeowner's insurance policy?

Accepted Answer

A)  Furniture
B)  Firearms
C)  House and other structures
D)  Jewelry
E)  A silverware setF) A) and C)
G) C) and E)

Question 3

The comprehensive form (HO-5)of homeowner's insurance includes coverage for damage due to floods.

Accepted Answer

A) True 
 B)False  False

Question 4

What is the #1 natural disaster in the United States?

Accepted Answer

A)  Earthquakes
B)  Lightning strikes
C)  Floods
D)  Fires
E)  ThunderstormsF) A) and E)
G) D) and E) C

Question 5

The additional living expenses component of a homeowner's insurance policy is designed to:

Accepted Answer

A)  pay for temporary housing while your home is repaired.
B)  cover damage to property while away from home.
C)  reimburse a homeowner for damage done by a visitor.
D)  pay for medical expenses of people injured on your property.
E)  pay for repairs caused by fire or other hazards.F) C) and E)
G) A) and C)

Question 6

Property owners face loss of use risk due to:

Accepted Answer

A)  arson.
B)  fire.
C)  wind.
D)  water.
E)  smoke.F) D) and E)
G) B) and E)

Question 7

Which one of the following would be an example of the driver classification category that helps determine insurance rates?

Accepted Answer

A)  John Brown has a 2005 Mazda Miata Convertible.
B)  Harry Anderson lives in Boca Raton, Florida.
C)  Charlie Purciful is 22 years old.
D)  Charlotte Webb has her vehicle in a locked garage.
E)  Barry Evans has just moved to Raleigh, North Carolina.F) C) and E)
G) B) and E)

Question 8

The purpose of an assigned risk pool is to assist people with poor driving records in obtaining automobile insurance coverage.

Accepted Answer

A) True 
 B)False

Question 9

Which one of the following refers to a category based on the driver's age,sex,marital status,and driving habits that is used to set automobile insurance premiums?

Accepted Answer

A)  Rating territory
B)  Assigned risk pool
C)  No-fault system
D)  Driver classification
E)  Rating tiersF) B) and D)
G) D) and E)

Question 10

Which one of the following coverages would pay for health care for friends who were injured in your automobile?

Accepted Answer

A)  Medical payments
B)  Bodily injury liability
C)  Collision
D)  Uninsured coverage
E)  Underinsured coverageF) None of the above
G) C) and D)

Question 11

Comprehensive coverage would cover financial losses due to:

Accepted Answer

A)  injuries caused by a driver without insurance.
B)  damage to your car in an accident for which you were at fault.
C)  damage to your car caused by wind or hail.
D)  legal action against you for an accident.
E)  damage to a neighbor's tree caused by your car.F) A) and B)
G) None of the above

Question 12

Thad Joslin was judged at fault in an automobile accident.Three others were awarded damages of $150,000,$75,000,and $75,000.Thad has 100/300 bodily injury liability coverage.What amount,if any,would not be covered by his insurance?

Accepted Answer

A)  $150,000
B)  $100,000
C)  $50,000
D)  $25,000
E)  None.The total amount would be covered by insurance.F) A) and D)
G) D) and E)

Question 13

George and Dr.Martha Cooper rent a condominium in an area known for litigious residents and high cost judgments.George has an extensive stamp collection and Martha has expensive photographic equipment.What kind of insurance would you recommend for a couple in their living situation?

Accepted Answer

They should have a renter's policy for b...

Question 14

____________ coverage would pay for damage to your vehicle caused by an accident when another driver with insurance was legally at fault.

Accepted Answer

A)  Property damage liability
B)  Collision
C)  Comprehensive physical damage
D)  Uninsured motorists protection
E)  Assigned riskF) B) and C)
G) C) and E)

Question 15

David Bowers must show a card from his automobile insurance company when he registers his car in the state of Oklahoma each year to show financial responsibility.Which of the following types of laws is the reason he must show this card each year?

Accepted Answer

A)  Financial responsibility laws
B)  Lemon laws
C)  Truth in Lending Law
D)  Equal Opportunity Law
E)  Fiscal responsibility lawsF) B) and E)
G) B) and D)

Question 16

Tara Guest owns a home in Edmond,Oklahoma.She is worried about a tornado causing damage to her home.The tornado is an example of a:

Accepted Answer

A)  peril.
B)  hazard.
C)  risk.
D)  premium.
E)  liability.F) A) and C)
G) B) and E)

Question 17

Brett Johnson owns a home in Yukon,Oklahoma.A babysitter he hires breaks her leg when she trips over the dog.What part of his homeowner's insurance would cover this loss?

Accepted Answer

A)  House and other structures
B)  Additional living expenses
C)  Personal property
D)  Personal liability
E)  Specialized coverageF) A) and E)
G) A) and C)

Question 18

The purpose of insurance is to help protect you and your family against possible financial loss..

Accepted Answer

A) True 
 B)False  True

Question 19

Homeowner's insurance refers to coverage also available to condominium owners.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following refers to the process of establishing a monetary fund that can be used to cover the cost of a loss?

Accepted Answer

A)  Risk reduction
B)  Self-insurance
C)  Risk creation
D)  Risk avoidance
E)  Risk shiftingF) B) and C)
G) C) and D)

Exam 10: Property and Motor Vehicle Insurance

Your home insurance policy has a $250 deductible.If a small fire causes $600 damage to your home,what amount of the claim would the insurance company pay?

Correct AnswerverifiedShow Answer

Which of the following would not be considered personal property under a typical homeowner's insurance policy?

Correct AnswerverifiedShow Answer

The comprehensive form (HO-5)of homeowner's insurance includes coverage for damage due to floods.

Correct AnswerverifiedFalse

What is the #1 natural disaster in the United States?

Correct AnswerverifiedC

The additional living expenses component of a homeowner's insurance policy is designed to:

Correct AnswerverifiedShow Answer

Property owners face loss of use risk due to:

Correct AnswerverifiedShow Answer

Which one of the following would be an example of the driver classification category that helps determine insurance rates?

Correct AnswerverifiedShow Answer

The purpose of an assigned risk pool is to assist people with poor driving records in obtaining automobile insurance coverage.

Correct AnswerverifiedShow Answer

Which one of the following refers to a category based on the driver's age,sex,marital status,and driving habits that is used to set automobile insurance premiums?

Correct AnswerverifiedShow Answer

Which one of the following coverages would pay for health care for friends who were injured in your automobile?

Correct AnswerverifiedShow Answer

Comprehensive coverage would cover financial losses due to:

Correct AnswerverifiedShow Answer

Thad Joslin was judged at fault in an automobile accident.Three others were awarded damages of $150,000,$75,000,and $75,000.Thad has 100/300 bodily injury liability coverage.What amount,if any,would not be covered by his insurance?

Correct AnswerverifiedShow Answer

George and Dr.Martha Cooper rent a condominium in an area known for litigious residents and high cost judgments.George has an extensive stamp collection and Martha has expensive photographic equipment.What kind of insurance would you recommend for a couple in their living situation?

Correct AnswerverifiedThey should have a renter's policy for b...View AnswerShow Answer

____________ coverage would pay for damage to your vehicle caused by an accident when another driver with insurance was legally at fault.

Correct AnswerverifiedShow Answer

David Bowers must show a card from his automobile insurance company when he registers his car in the state of Oklahoma each year to show financial responsibility.Which of the following types of laws is the reason he must show this card each year?

Correct AnswerverifiedShow Answer

Tara Guest owns a home in Edmond,Oklahoma.She is worried about a tornado causing damage to her home.The tornado is an example of a:

Correct AnswerverifiedShow Answer

Brett Johnson owns a home in Yukon,Oklahoma.A babysitter he hires breaks her leg when she trips over the dog.What part of his homeowner's insurance would cover this loss?

Correct AnswerverifiedShow Answer

The purpose of insurance is to help protect you and your family against possible financial loss..

Correct AnswerverifiedTrue

Homeowner's insurance refers to coverage also available to condominium owners.

Correct AnswerverifiedShow Answer

Which of the following refers to the process of establishing a monetary fund that can be used to cover the cost of a loss?

Correct AnswerverifiedShow Answer

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They should have a renter's policy for b...
View Answer

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True

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