Question 1

Which one of the following is not covered by renter's insurance?

Accepted Answer

A)  Financial loss due to damage of personal property
B)  Fire damage to the building's roof from faulty wiring
C)  Additional living expenses
D)  Financial loss due to loss of personal property
E)  Personal liabilityF) C) and D)
G) D) and E)

Question 2

Georgia Owen was in an accident in which her car was totaled.What part of Georgia's automobile insurance would cover the damage to her car?

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) C) and D)

Question 3

Your home insurance policy has a $1,000 deductible.If a windstorm causes $2,500 damage to your home,what amount of the claim would the insurance company pay?

Accepted Answer

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

Question 4

Jane Smith accidentally hit a utility pole.The cost to repair her car was $2,950,and she has a $500 collision deductible.How much will the insurance company be required to pay for the car repair?

Accepted Answer

A)  $250
B)  $500
C)  $1,000
D)  $2,450
E)  $2,950F) A) and E)
G) B) and E)

Question 5

Which of the following is not covered by personal property coverage?

Accepted Answer

A)  Your camera taken on vacation
B)  Your computer tablet used while at school
C)  Your garage
D)  Power tool rental
E)  Rug shampoo machine rentalF) A) and B)
G) None of the above

Question 6

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

Accepted Answer

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

Question 7

The ________ coverage of a home insurance policy would cover accidental damage to another person's property by a member of your family.

Accepted Answer

A)  supplementary
B)  personal property
C)  medical payments
D)  additional living expenses
E)  voluntary liabilityF) All of the above
G) B) and D)

Question 8

Uninsurable risks are considered ________ risk.

Accepted Answer

A)  property
B)  liability
C)  speculative
D)  pure
E)  personalF) B) and E)
G) C) and D)

Question 9

Kelly and Bob Walton recently purchased a new home and desire coverage for all causes of loss or damage except those specially excluded by the policy.They should obtain the ________ form for a homeowner's policy.

Accepted Answer

A)  basic
B)  broad
C)  special
D)  modified coverage
E)  condominiumF) A) and C)
G) B) and D)

Question 10

George and Dr.Martha Cooper rent a condominium in an area known for litigious residents and high cost judgments.George has an extensive stamp collection and Martha has expensive photographic equipment.What kind of insurance would you recommend for a couple in their living situation?

Accepted Answer

They should have a renter's policy for b...

Question 11

Property owners face potential property losses due to two risks,physical damage and:

Accepted Answer

A)  liability.
B)  negligence.
C)  strict liability.
D)  vicarious liability.
E)  loss of use.F) B) and C)
G) A) and B)

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

Question 13

Which one of the following coverages would pay for healthcare for friends who were injured in your automobile?

Accepted Answer

A)  Medical payments coverage
B)  Bodily injury liability
C)  Collision
D)  Uninsured coverage
E)  Underinsured coverageF) A) and B)
G) None of the above

Question 14

Robert Plant pays a premium each month to State Farm Insurance for automobile insurance on his 2014 Dodge Ram pick-up truck.How is Robert managing his risk?

Accepted Answer

A)  Avoidance
B)  Reduction
C)  Assumption
D)  Shifting
E)  AssessmentF) All of the above
G) B) and E)

Question 15

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 16

Which of the following is a list of personal belongings with purchase dates and cost information?

Accepted Answer

A)  Personal property floater
B)  Household inventory
C)  Additional living expense
D)  Umbrella policy
E)  Personal liability policyF) B) and C)
G) A) and C)

Question 17

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

Accepted Answer

A)  one month process
B)  short-range process
C)  medium-range process
D)  long-range process
E)  non-planning processF) A) and B)
G) None of the above

Question 18

A parent may be held responsible for the actions of their child if those actions cause financial or physical harm to others.This is known as:

Accepted Answer

A)  negligence.
B)  strict liability.
C)  vicarious liability.
D)  umbrella coverage.
E)  self insurance.F) A) and B)
G) B) and E)

Question 19

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

Accepted Answer

A)  property damage coverage.
B)  collision coverage.
C)  bodily injury liability.
D)  uninsured motorists protection.
E)  no-fault coverage.F) D) and E)
G) B) and C)

Question 20

Negligence refers to:

Accepted Answer

A)  failure to take ordinary or reasonable care.
B)  cancellation of insurance.
C)  property damage.
D)  high risk insurance coverage.
E)  common hazards in our society.F) C) and D)
G) A) and D)

Exam 10: Property and Motor Vehicle Insurance

Uninsurable risks are considered ________ risk.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Your home insurance policy has a $1,000 deductible.If a windstorm causes $2,500 damage to your home,what amount of the claim would the insurance company pay?

Correct AnswerverifiedShow Answer

Jane Smith accidentally hit a utility pole.The cost to repair her car was $2,950,and she has a $500 collision deductible.How much will the insurance company be required to pay for the car repair?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Negligence refers to:

Correct AnswerverifiedShow Answer

The ________ coverage of a home insurance policy would cover accidental damage to another person's property by a member of your family.

Correct AnswerverifiedShow Answer

Georgia Owen was in an accident in which her car was totaled.What part of Georgia's automobile insurance would cover the damage to her car?

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 coverages would pay for healthcare for friends who were injured in your automobile?

Correct AnswerverifiedShow Answer

Property owners face potential property losses due to two risks,physical damage and:

Correct AnswerverifiedShow Answer

George and Dr.Martha Cooper rent a condominium in an area known for litigious residents and high cost judgments.George has an extensive stamp collection and Martha has expensive photographic equipment.What kind of insurance would you recommend for a couple in their living situation?

Correct AnswerverifiedThey should have a renter's policy for b...View AnswerShow Answer

Which one of the following is not covered by renter's insurance?

Correct AnswerverifiedShow Answer

Which of the following is a list of personal belongings with purchase dates and cost information?

Correct AnswerverifiedShow Answer

Peril is defined as:

Correct AnswerverifiedShow Answer

Which of the following is not covered by personal property coverage?

Correct AnswerverifiedShow Answer

Robert Plant pays a premium each month to State Farm Insurance for automobile insurance on his 2014 Dodge Ram pick-up truck.How is Robert managing his risk?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Kelly and Bob Walton recently purchased a new home and desire coverage for all causes of loss or damage except those specially excluded by the policy.They should obtain the ________ form for a homeowner's policy.

Correct AnswerverifiedShow Answer

A parent may be held responsible for the actions of their child if those actions cause financial or physical harm to others.This is known as:

Correct AnswerverifiedShow Answer

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They should have a renter's policy for b...
View Answer

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