Question 1

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

Accepted Answer

Most home insurance policies include cov...

Question 2

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

Accepted Answer

A)  assigned risk
B)  bodily injury liability
C)  no-fault insurance
D)  medical payments
E)  property damage liabilityF) All of the above
G) A) and E)

Question 3

________ protects you against financial loss when your car damages other vehicles,street signs,or buildings.

Accepted Answer

A)  Bodily injury liability
B)  Comprehensive physical damage
C)  Property damage liability
D)  No-fault insurance
E)  Assigned risk coverageF) C) and D)
G) None of the above

Question 4

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

Accepted Answer

A)  Furniture
B)  Toaster
C)  Tool shed
D)  Clothing
E)  MicrowaveF) B) and D)
G) A) and E)

Question 5

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

Question 6

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

Accepted Answer

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

Question 7

To reduce driving accidents among teens,some parents have installed an in-car monitoring device that records:

Accepted Answer

A)  seat belt use.
B)  engine temperature.
C)  tire pressure.
D)  oil changes.
E)  easy turns.F) D) and E)
G) None of the above

Question 8

A system that requires each insurance company operating in a state to provide coverage to individuals who may have had many expensive claims 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) B) and E)
G) A) and B)

Question 9

Property owners face loss of use risk due to:

Accepted Answer

A)  arson.
B)  fire.
C)  wind.
D)  water.
E)  smoke.F) A) and C)
G) A) and D)

Question 10

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) C) and D)
G) A) and E)

Question 11

Most home insurance policies provide coverage for minor accidental injuries on your property under:

Accepted Answer

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

Question 12

Another term for liability insurance that protects you from claims if a client holds you responsible for errors or you fail to perform as promised is:

Accepted Answer

A)  umbrella policy.
B)  personal property floater.
C)  errors and omissions.
D)  endorsement.
E)  self-insurance.F) A) and B)
G) A) and C)

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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) A) and D)
G) A) and B)

Question 15

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

Question 16

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

Accepted Answer

A)  Umbrella policy
B)  Personal liability
C)  Additional living expense coverage
D)  Personal property floater
E)  Coinsurance floaterF) A) and E)
G) A) and D)

Question 17

Self-insurance is part of:

Accepted Answer

A)  risk avoidance.
B)  risk assumption.
C)  risk shifting.
D)  risk reduction.
E)  endorsement.F) C) and D)
G) A) and C)

Question 18

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) C) and D)

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Which one of the following factors is used to determine a person's driver classification?

Accepted Answer

A)  Age
B)  Type and age of vehicle
C)  Claims in your geographic area
D)  Insurance company claim processing costs
E)  State insurance premium regulationsF) B) and E)
G) A) and B)

Exam 10: Property and Motor Vehicle Insurance

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

________ protects you against financial loss when your car damages other vehicles,street signs,or buildings.

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A system that requires each insurance company operating in a state to provide coverage to individuals who may have had many expensive claims is referred to as:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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

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

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

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

Correct AnswerverifiedShow Answer

Self-insurance is part of:

Correct AnswerverifiedShow Answer

To reduce driving accidents among teens,some parents have installed an in-car monitoring device that records:

Correct AnswerverifiedShow Answer

The 500 in 200/500/50 refers to:

Correct AnswerverifiedShow Answer

Most home insurance policies provide coverage for minor accidental injuries on your property under:

Correct AnswerverifiedShow Answer

Which one of the following factors is used to determine a person's driver classification?

Correct AnswerverifiedShow Answer

Another term for liability insurance that protects you from claims if a client holds you responsible for errors or you fail to perform as promised is:

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

Property owners face loss of use risk due to:

Correct AnswerverifiedShow Answer

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Most home insurance policies include cov...
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