Question 1

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 2

In the insurance industry, the term "peril" represents ________________.

Accepted Answer

A)   the chance that something may be lost
B)   the cause of the possible loss
C)   a habit that increases the likelihood of loss
D)   the actual loss experienced
E)   your record of past lossesF) A) and D)
G) B) and D)

Question 3

If you have a $2,000 claim resulting from a fire in your home and your policy stipulates that your deductible is $500, then the insurance company will pay you

Accepted Answer

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

Question 4

Personal property refers to the contents of your home-clothes, furniture, appliances, and similar items covered by homeowner's insurance.

Accepted Answer

A) True 
 B)False

Question 5

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

Question 6

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

Question 7

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

Question 8

The higher the deductible you choose for your car insurance, the higher the premium.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)   earthquake damage
B)   flooding
C)   brush fires
D)   fire damage to your garage
E)   theft of business supplies from your officeF) A) and B)
G) A) and C)

Question 10

The additional living expenses component of a home insurance policy is designed to

Accepted Answer

A)   pay for temporary housing while your home is repaired.
B)   cover damage to property while away from home.
C)   reimburse a homeowner for damage done by a visitor.
D)   pay for medical expenses of people injured on your property.
E)   pay for repairs caused by fire or other hazards.F) A) and B)
G) A) and C)

Question 11

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

Question 12

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 E)
G) A) and C)

Question 13

Risk management is an organized strategy for protecting assets and people.

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

What factors affect the cost of home insurance?

Accepted Answer

The main influences on home insurance co...

Question 16

Anne has an expensive diamond ring. Which coverage from the following list would pay for damage or theft of this item?

Accepted Answer

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

Question 17

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

Question 18

Which of the following are not covered by tenant's insurance?

Accepted Answer

A)   medical expenses for injuries to visitors
B)   fire damage of the building's roof
C)   additional living expenses
D)   accidental damage to the property of others
E)   cost of legal action due to personal liabilityF) B) and C)
G) B) and E)

Question 19

The requirement for a minimum level of home insurance coverage refers to which of the following?

Accepted Answer

A)   Deductible
B)   Specified perils
C)   Endorsement
D)   Co-insurance
E)   BasicF) B) and E)
G) A) and E)

Question 20

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) All of the above
G) A) and B)

Exam 8: Home and Automobile Insurance

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

In the insurance industry, the term "peril" represents ________________.

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

Personal property refers to the contents of your home-clothes, furniture, appliances, and similar items covered by homeowner's insurance.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What factors affect the cost of home insurance?

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

The requirement for a minimum level of home insurance coverage refers to which of the following?

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

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

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

Risk management is an organized strategy for protecting assets and people.

Correct AnswerverifiedShow Answer

Most home insurance policies provide coverage for

Correct AnswerverifiedShow Answer

The higher the deductible you choose for your car insurance, the higher the premium.

Correct AnswerverifiedShow Answer

Vicarious liability refers to

Correct AnswerverifiedShow Answer

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

Which of the following are not covered by tenant's insurance?

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

If you have a $2,000 claim resulting from a fire in your home and your policy stipulates that your deductible is $500, then the insurance company will pay you

Correct AnswerverifiedShow Answer

The additional living expenses component of a home insurance policy is designed to

Correct AnswerverifiedShow Answer

Anne has an expensive diamond ring. Which coverage from the following list would pay for damage or theft of this item?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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The main influences on home insurance co...
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While protection from financial loss as ...
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