Question 1

Property risks

Accepted Answer

A)   are the chance that something may be lost.
B)   are the cause of a possible loss.
C)   are legally defined as uninsurable.
D)   are the uncertainties of direct or indirect losses to property due to fire, windstorms, accidents, theft, and other hazards.
E)   are loss possibilities due to negligence resulting in bodily harm or property damage to others.F) None of the above
G) A) and D)

Question 2

Under the ____________ method for settling claims you receive the full cost of repairing or replacing a damaged or lost item and depreciation is not considered.

Accepted Answer

A)   replacement value
B)   actual cash value
C)   umbrella
D)   endorsement
E)   personal articles endorsementF) C) and E)
G) A) and B)

Question 3

Risk management is not an organized strategy for protecting and conserving assets and people.

Accepted Answer

A) True 
 B)False

Question 4

The purpose of a high-risk pool is to

Accepted Answer

A)   provide insurance for poor drivers.
B)   reduce medical costs associated with auto accidents.
C)   take unsafe drivers off the road.
D)   reduce auto insurance premiums with state regulation.
E)   offer premium discounts to safe drivers.F) B) and C)
G) C) and E)

Question 5

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

Question 6

Ahmed Hadad was injured in an accident caused by another driver who did not have insurance. Ahmed's medical expenses would be covered by

Accepted Answer

A)   medical payments.
B)   collision.
C)   bodily injury liability.
D)   uninsured motorist's protection.
E)   no-fault coverage.F) None of the above
G) B) and D)

Question 7

Personal risks, property risks, and liability risks are types of speculative risks.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)   additional living expenses
B)   personal property
C)   building and other structures
D)   personal liability
E)   property damageF) C) and D)
G) A) and C)

Question 9

Vicarious liability occurs when one person is held responsible for the actions of another person.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

The main factors that influence the amou...

Exam 8: Home and Automobile Insurance

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 Answer
verified

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

Correct Answer
verified
The main factors that influence the amou...
View Answer

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

Correct Answer
verified

Property risks

Correct Answer
verified

Personal risks, property risks, and liability risks are types of speculative risks.

Correct Answer
verified

Risk management is not an organized strategy for protecting and conserving assets and people.

Correct Answer
verified

Vicarious liability occurs when one person is held responsible for the actions of another person.

Correct Answer
verified

Under the ____________ method for settling claims you receive the full cost of repairing or replacing a damaged or lost item and depreciation is not considered.

Correct Answer
verified

Ahmed Hadad was injured in an accident caused by another driver who did not have insurance. Ahmed's medical expenses would be covered by

Correct Answer
verified

The purpose of a high-risk pool is to

Correct Answer
verified

Exam 8: Home and Automobile Insurance

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

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

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

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

Correct AnswerverifiedShow Answer

Property risks

Correct AnswerverifiedShow Answer

Personal risks, property risks, and liability risks are types of speculative risks.

Correct AnswerverifiedShow Answer

Risk management is not an organized strategy for protecting and conserving assets and people.

Correct AnswerverifiedShow Answer

Vicarious liability occurs when one person is held responsible for the actions of another person.

Correct AnswerverifiedShow Answer

Under the ____________ method for settling claims you receive the full cost of repairing or replacing a damaged or lost item and depreciation is not considered.

Correct AnswerverifiedShow Answer

Ahmed Hadad was injured in an accident caused by another driver who did not have insurance. Ahmed's medical expenses would be covered by

Correct AnswerverifiedShow Answer

The purpose of a high-risk pool is to

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
The main factors that influence the amou...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified