Question 1

Fewer than what percent of people who live in flood-prone areas have flood insurance?

Accepted Answer

A)  5
B)  15
C)  20
D)  30
E)  50F) B) and D)
G) B) and C) E

Question 2

Approximately what percent of people who rent have purchased renter's insurance?

Accepted Answer

A)  10
B)  20
C)  40
D)  60
E)  75F) All of the above
G) A) and B)

Question 3

While cleaning your home,a worker damages some furniture.You take action against the worker's employer to cover the cost of the damage.This is an example of a(n) ________ liability.

Accepted Answer

A)  umbrella
B)  assigned
C)  common situation
D)  peril
E)  vicariousF) C) and D)
G) A) and E)

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Renter's insurance would include coverage for:

Accepted Answer

A)  flood damage.
B)  personal property.
C)  house and other structures.
D)  umbrella liability.
E)  earthquake damage.F) C) and D)
G) All of the above

Question 6

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

Accepted Answer

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

Question 7

Property damage liability coverage would pay for damage to another vehicle for which you were at fault.

Accepted Answer

A) True 
 B)False

Question 8

Comprehensive physical damage 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) A) and E)

Question 9

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 C)
G) C) and E)

Question 10

Evan McWilliams accidentally collided with a car driven by Francis Sullivan.It was Evan's fault and Francis was seriously injured and had to spend the night in the hospital.What part of Evan's automobile insurance policy would cover Francis's injuries?

Accepted Answer

A)  Bodily injury liability
B)  Medical payments coverage
C)  Property damage liability
D)  Collision
E)  Comprehensive physical damageF) All of the above
G) D) and E)

Question 11

Which one of the following would be an example of a rating territory that helps determine insurance rates?

Accepted Answer

A)  Paul Carter drives a 2002 Volkswagen Eurovan.
B)  Mary Williams is 73 years old.
C)  Kathy Smith lives in Guthrie,Oklahoma.
D)  Jeremy Davis is married.
E)  John Brown has had three speeding tickets in five years.F) B) and D)
G) A) and B) C

Question 12

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)  House and other structures
B)  Additional living expenses
C)  Personal property
D)  Personal liability
E)  Specialized coverageF) A) and E)
G) A) and D)

Question 13

Which of the following refers to the process of establishing a monetary fund that can be used to cover the cost of a loss?

Accepted Answer

A)  Risk reduction
B)  Self-insurance
C)  Risk creation
D)  Risk avoidance
E)  Risk shiftingF) B) and E)
G) C) and E)

Question 14

Which one of the following refers to a category based on the driver's 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 E)
G) D) and E)

Question 15

The 100/300 amounts for bodily injury liability insurance refer to the premium associated with insurance coverage.

Accepted Answer

A) True 
 B)False

Question 16

Eating a balanced diet and exercising is an example of risk ________.

Accepted Answer

A)  shifting
B)  acceptance
C)  reduction
D)  assumption
E)  avoidanceF) C) and D)
G) A) and B) C

Question 17

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

Accepted Answer

Strict liability is present when a perso...

Question 18

Wind damage occurs to your car costing $800 to repair.If you have a $500 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) B) and E)
G) A) and C)

Question 19

What do automobile insurance companies use GPS technology for?

Accepted Answer

GPS or global positioning systems and ot...

Question 20

Most insurance policies include deductibles,which are a combination of risk assumption and:

Accepted Answer

A)  risk avoidance.
B)  risk reduction.
C)  risk shifting.
D)  risk creation.
E)  risk assessment.F) A) and D)
G) C) and D)

Exam 10: Property and Motor Vehicle Insurance

Fewer than what percent of people who live in flood-prone areas have flood insurance?

Correct AnswerverifiedE

Approximately what percent of people who rent have purchased renter's insurance?

Correct AnswerverifiedShow Answer

While cleaning your home,a worker damages some furniture.You take action against the worker's employer to cover the cost of the damage.This is an example of a(n) ________ liability.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Renter's insurance would include coverage for:

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 the uncertainty as to a loss is an example of a:

Correct AnswerverifiedShow Answer

Property damage liability coverage would pay for damage to another vehicle for which you were at fault.

Correct AnswerverifiedShow Answer

Comprehensive physical damage coverage would cover financial losses due to:

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

Evan McWilliams accidentally collided with a car driven by Francis Sullivan.It was Evan's fault and Francis was seriously injured and had to spend the night in the hospital.What part of Evan's automobile insurance policy would cover Francis's injuries?

Correct AnswerverifiedShow Answer

Which one of the following would be an example of a rating territory that helps determine insurance rates?

Correct AnswerverifiedC

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 of the following refers to the process of establishing a monetary fund that can be used to cover the cost of a loss?

Correct AnswerverifiedShow Answer

Which one of the following refers to a category based on the driver's age,sex,marital status,and driving habits that is used to set automobile insurance premiums?

Correct AnswerverifiedShow Answer

The 100/300 amounts for bodily injury liability insurance refer to the premium associated with insurance coverage.

Correct AnswerverifiedShow Answer

Eating a balanced diet and exercising is an example of risk ________.

Correct AnswerverifiedC

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

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

Wind damage occurs to your car costing $800 to repair.If you have a $500 deductible for collision and full coverage for comprehensive,what portion of the claim will the insurance company pay?

Correct AnswerverifiedShow Answer

What do automobile insurance companies use GPS technology for?

Correct AnswerverifiedGPS or global positioning systems and ot...View AnswerShow Answer

Most insurance policies include deductibles,which are a combination of risk assumption and:

Correct AnswerverifiedShow Answer

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C

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C

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Strict liability is present when a perso...
View Answer

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GPS or global positioning systems and ot...
View Answer

Correct Answer
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