Question 1

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 D)
G) B) and E)

Question 2

Wearing a seat belt in an automobile to protect yourself against the risk ofinjury in an automobile accident is an example of risk _____.

Accepted Answer

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

Question 3

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

Question 4

Kevin Brown rides his bicycle to work so that he does not have to worry about getting in a car accident.How is Kevin managing his risk?

Accepted Answer

A)  Avoidance
B)  Reduction
C)  Assumption
D)  Shifting
E)  CreationF) A) and B)
G) C) and D)

Question 5

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

Accepted Answer

Most home insurance policies include cov...

Question 6

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

Accepted Answer

The main factors that influence the amou...

Question 7

What do automobile insurance companies use GPS technology for?

Accepted Answer

GPS or global positioning systems and ot...

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) C) and D)

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

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

Question 11

Homeowners can obtain $10,000 coverage for sewage and drain backup damage for approximately:

Accepted Answer

A)  $50 to $80 per year
B)  $80 to $110 per year
C)  $110 to $140 per year
D)  $140 to $170 per year
E)  $170 to $200 per yearF) A) and D)
G) A) and E)

Question 12

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

Question 13

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

Question 14

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

Question 15

Which of the following is aninsurer that agrees to assume financial responsibility for losses that may result from an insured risk?

Accepted Answer

A)  Financial advisor
B)  Futo manufacturer
C)  Homeowner
D)  Policyholder
E)  Insurance companyF) All of the above
G) B) and E)

Question 16

An umbrella policy is designed to cover:

Accepted Answer

A)  expensive personal property.
B)  additional buildings on your property.
C)  property when traveling away from home.
D)  major personal liability claims.
E)  flood damage.F) B) and D)
G) C) and E)

Question 17

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

Question 18

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 assessmentF) A) and E)
G) All of the above

Question 19

Personal risks,property risks,and liability risks are types of ________ risk.

Accepted Answer

A)  speculative
B)  avoided
C)  assumed
D)  pure
E)  reducedF) A) and E)
G) C) and D)

Question 20

The uncertainties of direct and indirect losses to personal or real property due to fire,wind,accidents,theft,and other hazards are called ____________ risks.

Accepted Answer

A)  personal
B)  business
C)  property
D)  liability
E)  speculativeF) C) and D)
G) A) and B)

Exam 10: Property and Motor Vehicle Insurance

Personal risks,property risks,and liability risks are types of ________ risk.

Correct AnswerverifiedShow Answer

What do automobile insurance companies use GPS technology for?

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

Homeowners can obtain $10,000 coverage for sewage and drain backup damage for approximately:

Correct AnswerverifiedShow Answer

The uncertainties of direct and indirect losses to personal or real property due to fire,wind,accidents,theft,and other hazards are called ____________ risks.

Correct AnswerverifiedShow Answer

Wearing a seat belt in an automobile to protect yourself against the risk ofinjury in an automobile accident is an example of risk _____.

Correct AnswerverifiedShow Answer

An umbrella policy is designed to cover:

Correct AnswerverifiedShow Answer

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

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

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

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

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

Correct AnswerverifiedShow Answer

Kevin Brown rides his bicycle to work so that he does not have to worry about getting in a car accident.How is Kevin managing his risk?

Correct AnswerverifiedShow Answer

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

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

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

Correct AnswerverifiedShow Answer

Which of the following is aninsurer that agrees to assume financial responsibility for losses that may result from an insured risk?

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

Peril is defined as:

Correct AnswerverifiedShow Answer

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

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

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GPS or global positioning systems and ot...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The main factors that influence the amou...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Most home insurance policies include cov...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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