Question 1

An umbrella policy is designed to cover

Accepted Answer

A)   expensive personal property.
B)   additional buildings on your property.
C)   property when traveling away from home.
D)   flood damage
E)   major personal liability suits.F) D) and E)
G) All of the above

Question 2

Vicarious liability refers to

Accepted Answer

A)   failure to take ordinary and reasonable care.
B)   when a person is held responsible for actions of another person.
C)   property damage.
D)   high risk insurance coverage.
E)   common hazards in our society.F) A) and B)
G) A) and E)

Question 3

____________ provides coverage for the risk of financial loss due to legal expenses,medical expenses,lost wages,and other expenses associated with injuries caused by an automobile accident for which you were responsible.

Accepted Answer

A)   Medical payments
B)   No-fault insurance
C)   Uninsured motorist's protection
D)   Bodily injury liability
E)   Comprehensive insuranceF) B) and C)
G) A) and D)

Question 4

The uncertainties of direct and indirect losses due to fire,wind,accident,theft,etc.,are called ____________ risks.

Accepted Answer

A)   personal
B)   business
C)   property
D)   liability
E)   speculativeF) All of the above
G) B) and D)

Question 5

Risk management is not an organized strategy for protecting and conserving assets and people.

Accepted Answer

A) True 
 B)False

Question 6

The ____________ coverage of a home insurance policy would cover accidental damage to another person's property by a member of your family.

Accepted Answer

A)   voluntary property damages
B)   personal property
C)   medical payments
D)   additional living expenses
E)   personal liabilityF) B) and E)
G) C) and E)

Question 7

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

Accepted Answer

A)   earthquake damage
B)   flooding
C)   brush fires
D)   wind damage to your roof
E)   theft of business supplies from your officeF) None of the above
G) All of the above

Question 8

What events are commonly covered in a homeowner's insurance policy?

Accepted Answer

Most home insurance policies include cov...

Question 9

Most home insurance policies provide coverage for

Accepted Answer

A)   earthquake damage.
B)   flood damage.
C)   an umbrella liability.
D)   basic personal liability.
E)   medical payments.F) C) and D)
G) A) and C)

Question 10

Wind damage occurs to your car costing $1000 to repair.If you have a $300 deductible for collision and full coverage for comprehensive,what portion of the claim will the insurance company pay?

Accepted Answer

A)   $300
B)   $1300
C)   $500
D)   $700
E)   $800F) A) and D)
G) B) and E)

Question 11

The legal responsibility for the financial cost of another person's losses or injuries is referred to as

Accepted Answer

A)   theft.
B)   robbery.
C)   liability.
D)   assigned risk.
E)   collusion.F) A) and E)
G) B) and D)

Question 12

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 with your car.F) B) and C)
G) A) and D)

Question 13

Which of the following refers to a category based on 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)   use of the vehicleF) A) and E)
G) A) and C)

Question 14

Georgette Valentine has expensive photography equipment for use in her hobby.Which coverage from the following list would pay for damage or theft of this equipment?

Accepted Answer

A)   an umbrella policy
B)   a household inventory
C)   additional living expense coverage
D)   a personal articles endorsement
E)   a coinsurance floaterF) D) and E)
G) A) and C)

Question 15

Which of the following insurance policy provisions requires that the insured must pay for part of the loss of a claim if the property is not insured for the specified percentage of replacement value?

Accepted Answer

A)   personal property floater
B)   an endorsement
C)   assigned risk clause
D)   umbrella coverage
E)   coinsurance clauseF) B) and E)
G) C) and E)

Question 16

The purpose of insurance is to help protect you and your family against financial hardship due to hazard,accident,death,and the like.

Accepted Answer

A) True 
 B)False

Question 17

A rider is an addition of coverage to a standard insurance policy.

Accepted Answer

A) True 
 B)False

Question 18

Your geographic location is a major factor in determining the ____________ used to calculate your automobile insurance premiums.

Accepted Answer

A)   driver classification
B)   assigned risk pool
C)   coverage level
D)   legal responsibilities
E)   rating territoryF) A) and C)
G) B) and E)

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Which of the following coverage's would pay for medical care for people who were injured in your automobile?

Accepted Answer

A)   comprehensive
B)   bodily injury liability
C)   collision
D)   accident benefits
E)   no-fault insuranceF) A) and B)
G) C) and D)

Exam 8: Home and Automobile Insurance

The ____________ coverage of a home insurance policy would cover accidental damage to another person's property by a member of your family.

Correct AnswerverifiedShow Answer

Which of the following coverage's would pay for medical care for people who were injured in your automobile?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Most home insurance policies provide coverage for

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Risk management is not an organized strategy for protecting and conserving assets and people.

Correct AnswerverifiedShow Answer

The purpose of insurance is to help protect you and your family against financial hardship due to hazard,accident,death,and the like.

Correct AnswerverifiedShow Answer

Which of the following insurance policy provisions requires that the insured must pay for part of the loss of a claim if the property is not insured for the specified percentage of replacement value?

Correct AnswerverifiedShow Answer

Comprehensive coverage would cover financial losses due to

Correct AnswerverifiedShow Answer

____________ provides coverage for the risk of financial loss due to legal expenses,medical expenses,lost wages,and other expenses associated with injuries caused by an automobile accident for which you were responsible.

Correct AnswerverifiedShow Answer

An umbrella policy is designed to cover

Correct AnswerverifiedShow Answer

Georgette Valentine has expensive photography equipment for use in her hobby.Which coverage from the following list would pay for damage or theft of this equipment?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Vicarious liability refers to

Correct AnswerverifiedShow Answer

A rider is an addition of coverage to a standard insurance policy.

Correct AnswerverifiedShow Answer

Your geographic location is a major factor in determining the ____________ used to calculate your automobile insurance premiums.

Correct AnswerverifiedShow Answer

What events are commonly covered in a homeowner's insurance policy?

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

The uncertainties of direct and indirect losses due to fire,wind,accident,theft,etc.,are called ____________ risks.

Correct AnswerverifiedShow Answer

Wind damage occurs to your car costing $1000 to repair.If you have a $300 deductible for collision and full coverage for comprehensive,what portion of the claim will the insurance company pay?

Correct AnswerverifiedShow Answer

The legal responsibility for the financial cost of another person's losses or injuries is referred to as

Correct AnswerverifiedShow Answer

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Most home insurance policies include cov...
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