Question 1

Personal risks,property risks,and liability risks are types of ________ risk.

Accepted Answer

A)  speculative
B)  avoided
C)  assumed
D)  pure
E)  reducedF) A) and C)
G) A) and E)

Question 2

What type of coverage in a home insurance policy is designed to pay for legal action taken against a homeowner who may be legally responsible for injury or property damage of others?

Accepted Answer

A)  medical payments
B)  liability
C)  floater
D)  comprehensive
E)  personal propertyF) C) and D)
G) B) and D)

Question 3

Your home insurance provides for replacement value for personal property losses.A microwave is stolen.It cost $300 two years ago and has an expected life of six years.A comparable microwave costs $400 today.What amount will the insurance company pay?

Accepted Answer

A)  $100
B)  $150
C)  $200
D)  $350
E)  $400F) A) and B)
G) A) and C)

Question 4

While cleaning your home,a worker damages some furniture.You take action against the worker's employer to cover the cost of the damage.This is an example of a(n) ____________ liability.

Accepted Answer

A)  umbrella
B)  assigned
C)  common situation
D)  peril
E)  vicariousF) A) and B)
G) None of the above

Question 5

Increased liability insurance is available with an umbrella policy.

Accepted Answer

A) True 
 B)False

Question 6

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) None of the above
G) A) and E)

Question 7

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

Accepted Answer

A)  furniture
B)  clothing
C)  buildings and other structures
D)  jewelry
E)  a silverware setF) A) and E)
G) B) and D)

Question 8

David Bowers must show a card from his automobile insurance company when he registers his car in the state of Oklahoma each year.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) A) and D)
G) A) and C)

Question 9

Which of the following is not something you should do when you are involved in an automobile accident?

Accepted Answer

A)  stop your vehicle
B)  turn off the engine
C)  seek medical assistance for anyone with injuries
D)  discuss the accident with anyone around,making sure to admit liability if the accident was your fault
E)  obtain names and contact information of others in the accident and witnessesF) C) and D)
G) A) and C)

Question 10

Which one of the following is not covered by renter's insurance?

Accepted Answer

A)  medical expenses for injuries to visitors
B)  fire damage to the building's roof
C)  additional living expenses
D)  accidental damage to the property of others
E)  cost of legal action due to personal liabilityF) A) and B)
G) B) and D)

Question 11

What type of personal liability coverage is also called a personal catastrophe policy?

Accepted Answer

A)  umbrella policy
B)  personal property floater
C)  coinsurance floater
D)  assigned risk clause
E)  medical payments coverageF) A) and C)
G) None of the above

Question 12

Which one of the following types of coverage would pay for damage to your automobile in an accident for which you were at fault?

Accepted Answer

A)  property damage liability
B)  collision
C)  comprehensive physical damage
D)  no-fault insurance
E)  assigned risk pool coverageF) None of the above
G) C) and D)

Question 13

What coverages are commonly included in a homeowner's insurance policy?

Accepted Answer

Most home insurance policies include cov...

Question 14

Renter's insurance would include coverage for:

Accepted Answer

A)  flood damage.
B)  personal property.
C)  building and other structures.
D)  umbrella liability.
E)  earthquake damagE.F) A) and D)
G) B) and C)

Question 15

Nick Rodr owns a home in Edmond,Oklahoma and pays $665 per year in insurance on the home.The $665 is an example of a:

Accepted Answer

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

Question 16

Using a home security system is an example of ____________ risk.

Accepted Answer

A)  shifting
B)  accepting
C)  reducing
D)  sharing
E)  transferringF) A) and C)
G) A) and E)

Question 17

High winds cause damage to trees,shrubs,and other plants.This insurance claim would be covered under the ____________ component of homeowner's insurance.

Accepted Answer

A)  additional living expenses
B)  personal property
C)  building and other structures
D)  personal liability
E)  property damageF) B) and E)
G) A) and C)

Question 18

Kevin Brown rides his bicycle to work so that he doesn't have to worry about getting in a car accident.How is Kevin managing his risk?

Accepted Answer

A)  avoidance
B)  reduction
C)  assumption
D)  shifting
E)  creationF) None of the above
G) All of the above

Question 19

A parent may be held responsible for the actions of their child if those actions cause financial or physical harm to others.This is known as:

Accepted Answer

A)  negligence.
B)  strict liability.
C)  vicarious liability.
D)  umbrella coverage.
E)  self insurancE.F) None of the above
G) A) and D)

Question 20

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) B) and C)
G) A) and E)

Exam 10: Property and Motor Vehicle Insurance

Which one of the following types of coverage would pay for damage to your automobile in an accident for which you were 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.Which of the following types of laws is the reason he must show this card each year?

Correct AnswerverifiedShow Answer

While cleaning your home,a worker damages some furniture.You take action against the worker's employer to cover the cost of the damage.This is an example of a(n) ____________ liability.

Correct AnswerverifiedShow Answer

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

Renter's insurance would include coverage for:

Correct AnswerverifiedShow Answer

Nick Rodr owns a home in Edmond,Oklahoma and pays $665 per year in insurance on the home.The $665 is an example of a:

Correct AnswerverifiedShow Answer

A parent may be held responsible for the actions of their child if those actions cause financial or physical harm to others.This is known as:

Correct AnswerverifiedShow Answer

Personal risks,property risks,and liability risks are types of ________ risk.

Correct AnswerverifiedShow Answer

Your home insurance provides for replacement value for personal property losses.A microwave is stolen.It cost $300 two years ago and has an expected life of six years.A comparable microwave costs $400 today.What amount will the insurance company pay?

Correct AnswerverifiedShow Answer

Kevin Brown rides his bicycle to work so that he doesn't have to worry about getting in a car accident.How is Kevin managing his risk?

Correct AnswerverifiedShow Answer

Which of the following is not something you should do when you are involved in an automobile accident?

Correct AnswerverifiedShow Answer

What coverages are commonly included in a homeowner's insurance policy?

Correct AnswerverifiedMost home insurance policies include cov...View AnswerShow 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

Which one of the following is not covered by renter's insurance?

Correct AnswerverifiedShow Answer

High winds cause damage to trees,shrubs,and other plants.This insurance claim would be covered under the ____________ component of homeowner's insurance.

Correct AnswerverifiedShow Answer

What type of coverage in a home insurance policy is designed to pay for legal action taken against a homeowner who may be legally responsible for injury or property damage of others?

Correct AnswerverifiedShow Answer

What type of personal liability coverage is also called a personal catastrophe policy?

Correct AnswerverifiedShow Answer

Using a home security system is an example of ____________ risk.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Increased liability insurance is available with an umbrella policy.

Correct AnswerverifiedShow Answer

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Most home insurance policies include cov...
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