Question 1

Identify the areas covered by tenants' insurance. I Personal property protection.
II Additional living expenses.
III Personal liability.
IV Replacement value of premises.

Accepted Answer

A)   I,II and III only
B)   I and III only
C)   II,III and IV only
D)   I,II,III and IV
E)   I,II,and IVF) A) and B)
G) C) and E)

Question 2

The most common method of dealing with risk is to shift,or transfer it to an insurance company or some other organization.

Accepted Answer

A) True 
 B)False

Question 3

Defective house wiring is an example of a

Accepted Answer

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

Question 4

Property losses can be categorized into destruction of property,and losses due to robbery,burglary,vandalism,or arson.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following home insurance policies will have the highest premium?

Accepted Answer

A)   Standard
B)   Broad
C)   Comprehensive
D)   All forms will have the same cost.
E)   Broad and Comprehensive are equally expensiveF) C) and E)
G) All of the above

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Collision coverage pays for damage to your vehicle for such hazards as fire,theft,or wind damage.

Accepted Answer

A) True 
 B)False

Question 8

Purchasing a technology stock that may or may not increase in price is an example of ___________ risk.

Accepted Answer

A)   speculative
B)   pure
C)   commercial
D)   personal
E)   liabilityF) A) and D)
G) B) and D)

Question 9

There are no significant differences in home owner rates when comparing different insurance companies

Accepted Answer

A) True 
 B)False

Question 10

Ahmed Hadad was injured in an accident caused by another driver who did not have insurance.Ahmed's medical expenses would be covered by

Accepted Answer

A)   medical payments.
B)   collision.
C)   bodily injury liability.
D)   uninsured motorist's protection.
E)   no-fault coverage.F) D) and E)
G) B) and E)

Question 11

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)   no-fault insurance
C)   comprehensive system
D)   financial responsibility coverage
E)   uninsured motorist's protectionF) B) and E)
G) B) and C)

Question 12

If a homeowner leaves toys on stairs that result in injury to a delivery person,this may be ruled as

Accepted Answer

A)   vicarious liability.
B)   negligence.
C)   assigned risk.
D)   umbrella coverage.
E)   coinsurance.F) D) and E)
G) B) and E)

Question 13

The purpose of a high-risk pool is to assist people with poor driving records in obtaining automobile insurance coverage.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

While protection from financial loss as ...

Question 15

Voluntary medical payments 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) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

What factors affect the cost of home insurance?

Accepted Answer

The main influences on home insurance co...

Question 18

Tenant's insurance would include coverage for all of the following except

Accepted Answer

A)   additional living expense coverage.
B)   personal liability.
C)   building and other structures.
D)   personal property.
E)   protection against financial loss due to damage.F) A) and E)
G) B) and D)

Question 19

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 $200 today.What amount will the insurance company pay?

Accepted Answer

A)   $100
B)   $150
C)   $200
D)   $350
E)   $300F) B) and D)
G) C) and D)

Question 20

A friend wants to understand what affects the cost of auto insurance.Explain the factors used to determine the automobile insurance premiums a person pays.

Accepted Answer

The main factors that influence the amou...

Exam 8: Home and Automobile Insurance

Voluntary medical payments 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

Purchasing a technology stock that may or may not increase in price is an example of ___________ risk.

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

What factors affect the cost of home insurance?

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

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

Tenant's insurance would include coverage for all of the following except

Correct AnswerverifiedShow Answer

Collision coverage pays for damage to your vehicle for such hazards as fire,theft,or wind damage.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The most common method of dealing with risk is to shift,or transfer it to an insurance company or some other organization.

Correct AnswerverifiedShow Answer

A friend wants to understand what affects the cost of auto insurance.Explain the factors used to determine the automobile insurance premiums a person pays.

Correct AnswerverifiedThe main factors that influence the amou...View AnswerShow Answer

Ahmed Hadad was injured in an accident caused by another driver who did not have insurance.Ahmed's medical expenses would be covered by

Correct AnswerverifiedShow Answer

There are no significant differences in home owner rates when comparing different insurance companies

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 $200 today.What amount will the insurance company pay?

Correct AnswerverifiedShow Answer

The purpose of a high-risk pool is to assist people with poor driving records in obtaining automobile insurance coverage.

Correct AnswerverifiedShow Answer

If a homeowner leaves toys on stairs that result in injury to a delivery person,this may be ruled as

Correct AnswerverifiedShow Answer

Property losses can be categorized into destruction of property,and losses due to robbery,burglary,vandalism,or arson.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following home insurance policies will have the highest premium?

Correct AnswerverifiedShow Answer

Defective house wiring is an example of a

Correct AnswerverifiedShow Answer

Identify the areas covered by tenants' insurance. I Personal property protection. II Additional living expenses. III Personal liability. IV Replacement value of premises.

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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Correct Answer
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The main factors that influence the amou...
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