Question 1

________ coverage would pay for damage to your vehicle regardless of fault.

Accepted Answer

A)  Property damage liability
B)  Collision
C)  Comprehensive physical damage
D)  Uninsured motorists protection
E)  Assigned riskF) All of the above
G) C) and D)

Question 2

According to 2015 data,recovering from just one inch of flood water inside your building can cost about:

Accepted Answer

A)  $27,000
B)  $40,000
C)  $52,000
D)  $60,000
E)  $75,000F) A) and E)
G) C) and E)

Question 3

The most common method of dealing with risk is to:

Accepted Answer

A)  shift the risk.
B)  pool the risk.
C)  avoid the risk.
D)  reduce the risk.
E)  assume the risk.F) B) and E)
G) A) and C)

Question 4

Peter Jacobs has set aside $5,000 in case he has an accident in his 2001 Honda Civic.He does not have collision insurance on this car.How is Peter managing his risk?

Accepted Answer

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

Question 5

The 100 in 100/300/50 refers to:

Accepted Answer

A)  property damage liability coverage.
B)  the amount of the deductible.
C)  collision coverage.
D)  the total coverage for an accident.
E)  the limit for bodily injury claims that can be paid to one person.F) C) and D)
G) A) and B)

Question 6

What are the factors that affect the cost of home insurance?

Accepted Answer

The main influences on home in...

Question 7

Which one of the following would be an example of the driver classification category that helps determine insurance rates?

Accepted Answer

A)  John Brown has a 2005 Mazda Miata Convertible.
B)  Harry Anderson lives in Boca Raton,Florida.
C)  Charlie Purciful is 22 years old.
D)  Charlotte Webb has her vehicle in a locked garage.
E)  Barry Evans has just moved to Raleigh,North Carolina.F) B) and E)
G) D) and E)

Question 8

Personal belongings that have a high value can be protected with a personal property floater.

Accepted Answer

A) True 
 B)False

Question 9

Which form of a homeowner's policy expands coverage to include replacement cost on contents?

Accepted Answer

A)  Comprehensive Form (HO-5) 
B)  Special Form (HO-3) 
C)  Condominium Form (HO-6) 
D)  Tenants Form (HO-4) 
E)  Country Home Form (HO-7) F) B) and C)
G) B) and D)

Question 10

You are backing out of your driveway,late for a meeting.A short mental lapse and BANG...you hit a post at the end of your driveway.The damage seems minor.What questions should you ask when trying to decide whether or not to report the incident to your insurance company?

Accepted Answer

Questions that you would want ...

Question 11

Medical payments coverage in an automobile insurance policy pays for the costs of injuries to persons in the driver's vehicle.

Accepted Answer

A) True 
 B)False

Question 12

Helen Granger borrowed her best friend's car and was in an accident.She was at fault.The car was totaled.What part of Helen's automobile insurance policy would cover the damage to her friend's car?

Accepted Answer

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

Question 13

What type of coverage in a home insurance policy is designed to pay for legal action taken against a homeowner who may be legally responsible for another person's losses or injuries?

Accepted Answer

A)  Business property
B)  Liability
C)  Floater
D)  Comprehensive
E)  Personal propertyF) C) and E)
G) A) and B)

Question 14

The comprehensive form (HO-5)of homeowner's insurance includes coverage for damage due to floods.

Accepted Answer

A) True 
 B)False

Question 15

________ coverage protects your automobile from risks such as glass breakage,falling objects,vandalism,or damage caused by hitting an animal.

Accepted Answer

A)  Towing and emergency road service
B)  Comprehensive physical damage
C)  Collision
D)  Wage loss
E)  Medical paymentsF) C) and E)
G) C) and D)

Question 16

The additional living expenses component of a homeowner's insurance policy is designed to:

Accepted Answer

A)  pay for temporary housing while your home is repaired.
B)  cover damage to property while away from home.
C)  reimburse a homeowner for damage done by a visitor.
D)  pay for medical expenses of people injured on your property.
E)  pay for repairs caused by fire or other hazards.F) C) and D)
G) C) and E)

Question 17

The purpose of insurance is to help protect you and your family against possible financial loss.

Accepted Answer

A) True 
 B)False

Question 18

What does the term subrogation mean as it relates to motor vehicle property damage coverage?

Accepted Answer

Subrogation is defined as the ...

Question 19

________ provides coverage for the risk of financial loss due to legal expenses,medical expenses,lost wages,and other expenses associated with injuries caused by an automobile accident for which you were responsible.

Accepted Answer

A)  Medical payment
B)  Bodily injury liability
C)  Uninsured motorists protection
D)  No-fault insurance
E)  Comprehensive insuranceF) C) and E)
G) A) and E)

Question 20

Which of the following would be covered by a home insurance policy?

Accepted Answer

A)  Hospital expenses for surgery
B)  Injury to animals,birds,or fish
C)  Boats and aircraft
D)  Damage to your roof from hail
E)  Theft of business supplies from your officeF) All of the above
G) A) and B)

Exam 10: Property and Motor Vehicle Insurance

The comprehensive form (HO-5)of homeowner's insurance includes coverage for damage due to floods.

Correct AnswerverifiedShow Answer

What does the term subrogation mean as it relates to motor vehicle property damage coverage?

Correct AnswerverifiedSubrogation is defined as the ...View AnswerShow Answer

Medical payments coverage in an automobile insurance policy pays for the costs of injuries to persons in the driver's vehicle.

Correct AnswerverifiedShow Answer

Personal belongings that have a high value can be protected with a personal property floater.

Correct AnswerverifiedShow Answer

________ provides coverage for the risk of financial loss due to legal expenses,medical expenses,lost wages,and other expenses associated with injuries caused by an automobile accident for which you were responsible.

Correct AnswerverifiedShow Answer

What type of coverage in a home insurance policy is designed to pay for legal action taken against a homeowner who may be legally responsible for another person's losses or injuries?

Correct AnswerverifiedShow Answer

________ coverage protects your automobile from risks such as glass breakage,falling objects,vandalism,or damage caused by hitting an animal.

Correct AnswerverifiedShow Answer

The additional living expenses component of a homeowner's insurance policy is designed to:

Correct AnswerverifiedShow Answer

Which form of a homeowner's policy expands coverage to include replacement cost on contents?

Correct AnswerverifiedShow Answer

The purpose of insurance is to help protect you and your family against possible financial loss.

Correct AnswerverifiedShow Answer

Which one of the following would be an example of the driver classification category that helps determine insurance rates?

Correct AnswerverifiedShow Answer

You are backing out of your driveway,late for a meeting.A short mental lapse and BANG...you hit a post at the end of your driveway.The damage seems minor.What questions should you ask when trying to decide whether or not to report the incident to your insurance company?

Correct AnswerverifiedQuestions that you would want ...View AnswerShow Answer

The most common method of dealing with risk is to:

Correct AnswerverifiedShow Answer

________ coverage would pay for damage to your vehicle regardless of fault.

Correct AnswerverifiedShow Answer

Peter Jacobs has set aside $5,000 in case he has an accident in his 2001 Honda Civic.He does not have collision insurance on this car.How is Peter managing his risk?

Correct AnswerverifiedShow Answer

According to 2015 data,recovering from just one inch of flood water inside your building can cost about:

Correct AnswerverifiedShow Answer

Helen Granger borrowed her best friend's car and was in an accident.She was at fault.The car was totaled.What part of Helen's automobile insurance policy would cover the damage to her friend's car?

Correct AnswerverifiedShow Answer

What are the factors that affect the cost of home insurance?

Correct AnswerverifiedThe main influences on home in...View AnswerShow Answer

The 100 in 100/300/50 refers to:

Correct AnswerverifiedShow Answer

Which of the following would be covered by a home insurance policy?

Correct AnswerverifiedShow Answer

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Subrogation is defined as the ...
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Questions that you would want ...
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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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The main influences on home in...
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