Question 1

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

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

If you have a $500 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)  $0
B)  $100
C)  $150
D)  $250
E)  $500F) A) and E)
G) C) and D)

Question 4

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

Question 5

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

Accepted Answer

A)  additional living expense coverage.
B)  personal liability.
C)  automobile theft.
D)  personal property.
E)  protection against financial loss due to damage.F) None of the above
G) A) and B)

Question 6

An accident caused by an unidentified person is covered by what type of auto insurance?

Accepted Answer

A)  Bodily injury
B)  Accident Benefits
C)  Uninsured motorist's protection
D)  Property damage
E)  Comprehensive physical damageF) B) and D)
G) A) and E)

Question 7

A system that allows insurance companies to provide coverage to several individuals with poor driving records is referred to as

Accepted Answer

A)  no-fault insurance.
B)  an assigned risk pool.
C)  premium discounts.
D)  comprehensive coverage.
E)  collision coverage.F) None of the above
G) B) and E)

Question 8

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

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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) B) and C)

Question 11

A rider is an addition of coverage to a standard insurance policy.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is likely to increase your car insurance premium? I.You live in a rural area.
II) You are over 70.
III) You usually carry several passengers.

Accepted Answer

A)  I and II, only
B)  II and III, only
C)  I and III, only
D)  I, II and III
E)  I onlyF) All of the above
G) A) and D)

Question 13

Accident benefits automobile insurance coverage pays for the costs of injuries to persons in the driver's vehicle.

Accepted Answer

A) True 
 B)False

Question 14

What type of liability is present when a person is held responsible for the actions of another?

Accepted Answer

A)  Strict
B)  Vicarious
C)  Unlimited
D)  Limited
E)  NegligenceF) B) and C)
G) B) and D)

Question 15

Wind damage occurs to your car costing $1,000 to repair.If you have a $300 deductible for collision and full coverage for comprehensive, what portion of the claim will the insurance company pay?

Accepted Answer

A)  $300
B)  $1,300
C)  $500
D)  $700
E)  $800F) All of the above
G) A) and C)

Question 16

The driver classification category is based on automobile style, model, and value of the vehicle.

Accepted Answer

A) True 
 B)False

Question 17

Risk is

Accepted Answer

A)  the chance that something may be lost.
B)  is the cause of a possible loss.
C)  the increased likelihood of loss through some peril.
D)  uncertainties of direct or indirect losses to property due to fire, windstorms, accidents, theft, and other hazards.
E)  loss possibilities due to negligence resulting in bodily harm or property damage to others.F) B) and C)
G) D) and E)

Question 18

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 E)
G) A) and B)

Question 19

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 C)
G) A) and E)

Question 20

What personal property is specifically excluded from coverage by a homeowner's insurance?

Accepted Answer

A)  Washers and dryers
B)  Stoves
C)  Rental portion of the home
D)  Inexpensive Electronics
E)  CarpetF) A) and B)
G) A) and C)

Exam 8: Home and Automobile Insurance

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

Correct AnswerverifiedShow Answer

An accident caused by an unidentified person is covered by what type of auto 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 is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

If you have a $500 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

What type of liability is present when a person is held responsible for the actions of another?

Correct AnswerverifiedShow Answer

Which of the following is likely to increase your car insurance premium? I.You live in a rural area. II) You are over 70. III) You usually carry several passengers.

Correct AnswerverifiedShow Answer

Accident benefits automobile insurance coverage pays for the costs of injuries to persons in the driver's vehicle.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Wind damage occurs to your car costing $1,000 to repair.If you have a $300 deductible for collision and full coverage for comprehensive, what portion of the claim will the insurance company pay?

Correct AnswerverifiedShow Answer

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

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

A rider is an addition of coverage to a standard insurance policy.

Correct AnswerverifiedShow Answer

A system that allows insurance companies to provide coverage to several individuals with poor driving records is referred to as

Correct AnswerverifiedShow Answer

What personal property is specifically excluded from coverage by a homeowner's insurance?

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 driver classification category is based on automobile style, model, and value of the vehicle.

Correct AnswerverifiedShow Answer

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