Question 1

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

Accepted Answer

A)  furniture
B)  jewelry
C)  outside deck
D)  computer lost while on vacation
E)  iPodF) B) and D)
G) All of the above

Question 2

The purpose of an assigned risk pool is to:

Accepted Answer

A)  provide insurance for poor drivers.
B)  reduce medical costs associated with auto accidents.
C)  take unsafe drivers off the road.
D)  reduce auto insurance premiums with state regulation.
E)  offer premium discounts to safe drivers.F) A) and E)
G) A) and D)

Question 3

Which of the following might qualify Amy Farmer for a premium discount on her automobile insurance?

Accepted Answer

A)  completing a driver's training program
B)  earning straight A's in college
C)  installing an alarm system in her car
D)  participating in a carpool five days a week
E)  all of the other answersF) B) and E)
G) C) and D)

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Self-insurance is the process of establishing a monetary fund that can be used to cover the cost of a loss.

Accepted Answer

A) True 
 B)False

Question 6

Which one of the following would be an example of the driver classification category that determines 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) A) and E)
G) C) and D) C

Question 7

The additional living expenses component of a home 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) A) and D)
G) A) and C)

Question 8

The 100/300 amounts for bodily injury liability insurance refer to the costs of insurance coverage.

Accepted Answer

A) True 
 B)False

Question 9

The 25 in 50/100/25 refers to ____________ coverage.

Accepted Answer

A)  collision
B)  bodily injury liability
C)  comprehensive physical damage
D)  medical payments
E)  property damage liabilityF) D) and E)
G) B) and C)

Question 10

Which form of homeowner's policy provides coverage for the most risks?

Accepted Answer

A)  special
B)  basic
C)  broad
D)  tenants
E)  modified coverageF) A) and E)
G) A) and B)

Question 11

Ginger Simpson ran off the road and hit a bridge support.She was seriously injured and spent three days in the hospital.What part of Ginger's automobile insurance policy would cover Ginger's injuries?

Accepted Answer

A)  bodily injury liability
B)  medical payments coverage
C)  property damage liability
D)  collision
E)  comprehensive physical damageF) A) and B)
G) A) and C)

Question 12

The 500 in 200/500/50 refers to:

Accepted Answer

A)  property damage liability coverage.
B)  the amount of the deductible.
C)  collision coverage.
D)  the total coverage for an accident.
E)  the limit for all bodily injury claims from a single accident.F) B) and C)
G) B) and D)

Question 13

No-fault insurance systems have consistently reduced the time and costs involved in settling claims.

Accepted Answer

A) True 
 B)False

Question 14

Wearing a seat belt in an automobile to protect yourself against injury is an example of ____________ risk.

Accepted Answer

A)  reducing
B)  assuming
C)  pooling
D)  shifting
E)  avoidingF) B) and C)
G) C) and E)

Question 15

Defective house wiring is an example of a:

Accepted Answer

A)  hazard.
B)  peril.
C)  risk.
D)  speculation.
E)  planned danger.F) A) and E)
G) A) and C)

Question 16

Medical payments automobile insurance coverage pays for the costs of injuries to persons in the driver's vehicle.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following would be covered by a home insurance policy?

Accepted Answer

A)  hospital expenses for surgery
B)  damage to another person's car when driving
C)  accidental injury to a coworker on the job
D)  wind damage to your roof
E)  theft of business supplies from your officeF) B) and E)
G) B) and D) D

Question 18

Which of the following is a system in which drivers involved in an accident collect medical expenses,lost wages,and related injury costs from their own insurance company?

Accepted Answer

A)  assigned risk pool
B)  financial responsibility coverage
C)  comprehensive system
D)  no-fault insurance
E)  uninsured motorists protectionF) B) and D)
G) B) and C)

Question 19

The purpose of a household inventory is to provide evidence of items covered by home insurance.

Accepted Answer

A) True 
 B)False  True

Question 20

Evan McWilliams accidentally collided with a car driven by Francis Sullivan.It was Evan's fault and Francis was seriously injured and had to spend the night in the hospital.What part of Evan's automobile insurance policy would cover Francis's injuries?

Accepted Answer

A)  bodily injury liability
B)  medical payments coverage
C)  property damage liability
D)  collision
E)  comprehensive physical damageF) C) and E)
G) All of the above

Exam 10: Property and Motor Vehicle Insurance

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

Correct AnswerverifiedShow Answer

The purpose of an assigned risk pool is to:

Correct AnswerverifiedShow Answer

Which of the following might qualify Amy Farmer for a premium discount on her automobile insurance?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Self-insurance is the process of establishing a monetary fund that can be used to cover the cost of a loss.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedC

The additional living expenses component of a home insurance policy is designed to:

Correct AnswerverifiedShow Answer

The 100/300 amounts for bodily injury liability insurance refer to the costs of insurance coverage.

Correct AnswerverifiedShow Answer

The 25 in 50/100/25 refers to ____________ coverage.

Correct AnswerverifiedShow Answer

Which form of homeowner's policy provides coverage for the most risks?

Correct AnswerverifiedShow Answer

Ginger Simpson ran off the road and hit a bridge support.She was seriously injured and spent three days in the hospital.What part of Ginger's automobile insurance policy would cover Ginger's injuries?

Correct AnswerverifiedShow Answer

The 500 in 200/500/50 refers to:

Correct AnswerverifiedShow Answer

No-fault insurance systems have consistently reduced the time and costs involved in settling claims.

Correct AnswerverifiedShow Answer

Wearing a seat belt in an automobile to protect yourself against injury is an example of ____________ risk.

Correct AnswerverifiedShow Answer

Defective house wiring is an example of a:

Correct AnswerverifiedShow Answer

Medical payments automobile insurance coverage pays for the costs of injuries to persons in the driver's vehicle.

Correct AnswerverifiedShow Answer

Which of the following would be covered by a home insurance policy?

Correct AnswerverifiedD

Which of the following is a system in which drivers involved in an accident collect medical expenses,lost wages,and related injury costs from their own insurance company?

Correct AnswerverifiedShow Answer

The purpose of a household inventory is to provide evidence of items covered by home insurance.

Correct AnswerverifiedTrue

Evan McWilliams accidentally collided with a car driven by Francis Sullivan.It was Evan's fault and Francis was seriously injured and had to spend the night in the hospital.What part of Evan's automobile insurance policy would cover Francis's injuries?

Correct AnswerverifiedShow Answer

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C

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D

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True

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