Question 1

Susan Bize owns a home in Edmond,Oklahoma.She has a coffee maker in the home that has been recalled because it is likely to start fires.The coffee maker is an example of a:

Accepted Answer

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

Question 2

Replacement cost for settling property insurance claims is less costly than the actual cash value method.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is considered personal property for home insurance coverage?

Accepted Answer

A)  automobile
B)  garage
C)  furniture
D)  house
E)  trees and shrubsF) A) and B)
G) B) and D)

Question 4

The ____________ method to settle claims is based on the current replacement cost of a damaged or lost item less depreciation.

Accepted Answer

A)  replacement value
B)  actual cash value
C)  umbrella
D)  endorsement
E)  personal property floaterF) A) and E)
G) B) and E)

Question 5

Explain the difference between strict and vicarious liability.Provide examples.

Accepted Answer

Strict liability is present when a perso...

Question 6

William Bennett owns a home in Oviedo,Florida.There was a fire in his home and he and his family had to move to a motel until his home could be fixed.What part of his homeowner's insurance policy would cover the cost of the motel?

Accepted Answer

A)  buildings and other structures
B)  additional living expenses
C)  personal property
D)  personal liability
E)  specialized coverageF) A) and C)
G) C) and D)

Question 7

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) D) and E)
G) B) and E)

Question 8

The 100 in 100/300/50 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 bodily injury claims that can be paid to one person.F) All of the above
G) A) and D)

Question 9

A home made of wood is more expensive to insure than a comparable brick structure.

Accepted Answer

A) True 
 B)False

Question 10

Larry Foster has bought a car with front and side airbags and antilock brakes.How is Larry managing his risk?

Accepted Answer

A)  avoidance
B)  reduction
C)  assumption
D)  shifting
E)  developmentF) B) and D)
G) A) and E)

Question 11

The purpose of financial responsibility laws is to:

Accepted Answer

A)  reduce auto insurance costs.
B)  assist poor drivers in getting insurance coverage.
C)  protect the public from financial losses due to auto accidents.
D)  require uninsured motorists coverage.
E)  help drivers with a clean driving record.F) A) and D)
G) A) and E)

Question 12

Possible losses due to negligence resulting in bodily harm or property damage to others are called ____________ risks.

Accepted Answer

A)  speculative
B)  liability
C)  property
D)  personal
E)  commercialF) All of the above
G) A) and E)

Question 13

Joan Stone owns a home in Edmond,Oklahoma.She is worried her property might be damaged due to some unforeseen event.This worry about a loss is an example of a:

Accepted Answer

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

Question 14

What factors affect the cost of home insurance?

Accepted Answer

The main influences on home insurance co...

Question 15

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

Accepted Answer

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

Question 16

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) B) and D)
G) C) and D)

Question 17

A system that requires each insurance company operating in a state to provide coverage to individuals who have been unable to obtain other insurance is referred to as:

Accepted Answer

A)  no-fault insurance.
B)  an assigned risk pool.
C)  premium discounts.
D)  equal opportunity insurance.
E)  comprehensive coveragE.F) All of the above
G) B) and E)

Question 18

Wind damage occurs to your car costing $800 to repair.If you have a $100 deductible for collision and full coverage for comprehensive,what portion of the claim will the insurance company pay?

Accepted Answer

A)  $100
B)  $200
C)  $500
D)  $700
E)  $800F) C) and E)
G) D) and E)

Question 19

Personal belongings that have a high value require coverage with a personal property floater.

Accepted Answer

A) True 
 B)False

Question 20

Which type of automobile insurance is usually considered to be most important?

Accepted Answer

While protection from financial loss as ...

Exam 10: Property and Motor Vehicle Insurance

William Bennett owns a home in Oviedo,Florida.There was a fire in his home and he and his family had to move to a motel until his home could be fixed.What part of his homeowner's insurance policy would cover the cost of the motel?

Correct AnswerverifiedShow Answer

Wind damage occurs to your car costing $800 to repair.If you have a $100 deductible for collision and full coverage for comprehensive,what portion of the claim will the insurance company pay?

Correct AnswerverifiedShow Answer

Which type of automobile insurance is usually considered to be most important?

Correct AnswerverifiedWhile protection from financial loss as ...View AnswerShow Answer

The purpose of financial responsibility laws is to:

Correct AnswerverifiedShow Answer

Personal belongings that have a high value require coverage with a personal property floater.

Correct AnswerverifiedShow Answer

What factors affect the cost of home insurance?

Correct AnswerverifiedThe main influences on home insurance co...View AnswerShow Answer

Which of the following is considered personal property for home insurance coverage?

Correct AnswerverifiedShow Answer

Larry Foster has bought a car with front and side airbags and antilock brakes.How is Larry managing his risk?

Correct AnswerverifiedShow Answer

The ____________ method to settle claims is based on the current replacement cost of a damaged or lost item less depreciation.

Correct AnswerverifiedShow Answer

Susan Bize owns a home in Edmond,Oklahoma.She has a coffee maker in the home that has been recalled because it is likely to start fires.The coffee maker is an example of a:

Correct AnswerverifiedShow Answer

A home made of wood is more expensive to insure than a comparable brick structure.

Correct AnswerverifiedShow Answer

Replacement cost for settling property insurance claims is less costly than the actual cash value method.

Correct AnswerverifiedShow Answer

Joan Stone owns a home in Edmond,Oklahoma.She is worried her property might be damaged due to some unforeseen event.This worry about a loss is an example of a:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Possible losses due to negligence resulting in bodily harm or property damage to others are called ____________ risks.

Correct AnswerverifiedShow Answer

A system that requires each insurance company operating in a state to provide coverage to individuals who have been unable to obtain other insurance is referred to as:

Correct AnswerverifiedShow Answer

The 100 in 100/300/50 refers to:

Correct AnswerverifiedShow Answer

Explain the difference between strict and vicarious liability.Provide examples.

Correct AnswerverifiedStrict liability is present when a perso...View AnswerShow Answer

Comprehensive coverage would cover financial losses due to:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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While protection from financial loss as ...
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The main influences on home insurance co...
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Strict liability is present when a perso...
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