Question 1

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 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

Which one of the following coverages would pay for medical care for people who were injured in your automobile?

Accepted Answer

A)  medical payments
B)  bodily injury liability
C)  collision
D)  uninsured coverage
E)  underinsured coverageF) A) and C)
G) A) and E)

Question 4

Brett Johnson owns a home in Yukon,Oklahoma.A babysitter he hires breaks her leg when she trips over the dog.What part of his homeowner's insurance would cover this loss?

Accepted Answer

A)  buildings and other structures
B)  additional living expenses
C)  personal property
D)  personal liability
E)  specialized coverageF) None of the above
G) B) and E)

Question 5

Which one 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)  rating tiersF) A) and B)
G) A) and C)

Question 6

Home insurance costs are affected most directly by:

Accepted Answer

A)  the profits of the insurance company.
B)  insurance agents' commission.
C)  government regulations that set premiums.
D)  processing costs of claims.
E)  the number of claims in an area.F) A) and C)
G) A) and E)

Question 7

Which one of the following insurance policy provisions requires the insured to pay for part of the loss if the property is not insured for the specified percentage of replacement value?

Accepted Answer

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

Question 8

Craig Brown owns a home in San Francisco,California.There is a major earthquake and his house is damaged by the earthquake.What type of insurance would he have to have to cover this loss?

Accepted Answer

A)  building and other structures
B)  additional living expenses
C)  personal property
D)  personal liability
E)  specialized coverageF) All of the above
G) B) and E)

Question 9

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

Question 10

Hermione Granger borrowed her best friend's car and was in an accident.She was at fault.The car was totaled.What part of Hermione's automobile insurance policy would cover the damage to her friend's car?

Accepted Answer

A)  bodily injury liability
B)  medical payments coverage
C)  property damage liability
D)  collision
E)  comprehensive physical damageF) None of the above
G) All of the above

Question 11

Your home insurance policy has a $500 deductible.If a windstorm causes $2,000 damage to your home,what amount of the claim would the insurance company pay?

Accepted Answer

A)  $2,000
B)  $1,000
C)  $1,500
D)  $500
E)  $0F) C) and E)
G) B) and E)

Question 12

Peril is defined as:

Accepted Answer

A)  the refusal by an insurance company to pay for a loss.
B)  the cause of risk.
C)  the cause of a possible loss.
D)  an uncertainty as to loss.
E)  safety.F) None of the above
G) A) and C)

Question 13

_________ coverage protects your automobile from risks such as glass breakage,falling objects,vandalism,or damage caused by hitting an animal.

Accepted Answer

A)  Towing and emergency road service
B)  Comprehensive
C)  Collision
D)  Wage loss
E)  Medical paymentsF) None of the above
G) C) and E)

Question 14

The purpose of an assigned risk pool is to assist people with poor driving records in obtaining automobile insurance coverage.

Accepted Answer

A) True 
 B)False

Question 15

____________ coverage would pay for damage to your vehicle caused by an accident when another driver with insurance was legally at fault.

Accepted Answer

A)  Property damage liability
B)  Collision
C)  Comprehensive physical damage
D)  Uninsured motorists protection
E)  Assigned riskF) A) and B)
G) C) and E)

Question 16

Zachary Harris owns a home in Elk City.There was a bad thunderstorm and his gazebo was hit by lightening and burned to the ground.What part of his homeowner's insurance policy would cover this loss?

Accepted Answer

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

Question 17

If a homeowner leaves toys on stairs that results 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) None of the above

Question 18

Most home insurance policies provide coverage for:

Accepted Answer

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

Question 19

____________ 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)  Bodily injury liability
C)  Uninsured motorists protection
D)  No-fault insurance
E)  Comprehensive insuranceF) D) and E)
G) B) and D)

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 10: Property and Motor Vehicle Insurance

Your home insurance policy has a $500 deductible.If a windstorm causes $2,000 damage to your home,what amount of the claim would the insurance company pay?

Correct AnswerverifiedShow Answer

Most home insurance policies provide coverage for:

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

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

Correct AnswerverifiedShow Answer

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

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

The purpose of an assigned risk pool is to assist people with poor driving records in obtaining automobile insurance coverage.

Correct AnswerverifiedShow Answer

Craig Brown owns a home in San Francisco,California.There is a major earthquake and his house is damaged by the earthquake.What type of insurance would he have to have to cover this loss?

Correct AnswerverifiedShow Answer

Which one of the following coverages would pay for medical care for people who were injured in your automobile?

Correct AnswerverifiedShow Answer

Peril is defined as:

Correct AnswerverifiedShow Answer

Brett Johnson owns a home in Yukon,Oklahoma.A babysitter he hires breaks her leg when she trips over the dog.What part of his homeowner's insurance would cover this loss?

Correct AnswerverifiedShow Answer

Which one of the following insurance policy provisions requires the insured to pay for part of the loss if the property is not insured for the specified percentage of replacement value?

Correct AnswerverifiedShow Answer

Home insurance costs are affected most directly by:

Correct AnswerverifiedShow Answer

Zachary Harris owns a home in Elk City.There was a bad thunderstorm and his gazebo was hit by lightening and burned to the ground.What part of his homeowner's insurance policy would cover this loss?

Correct AnswerverifiedShow Answer

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

Which one 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

____________ coverage would pay for damage to your vehicle caused by an accident when another driver with insurance was legally at fault.

Correct AnswerverifiedShow Answer

_________ coverage protects your automobile from risks such as glass breakage,falling objects,vandalism,or damage caused by hitting an animal.

Correct AnswerverifiedShow Answer

Hermione Granger borrowed her best friend's car and was in an accident.She was at fault.The car was totaled.What part of Hermione's automobile insurance policy would cover the damage to her friend's car?

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

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