Question 1

The ____________ method to settle claims is based on the current replacement cost of a damaged or lost item less depreciation.

Accepted Answer

A)   replacement value
B)   actual cash value
C)   umbrella
D)   endorsement
E)   personal property floaterF) A) and E)
G) A) and B)

Question 2

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

Question 3

Wind damage occurs to your car costing $800 to repair. If you have a $100 deductible for collision and full coverage for comprehensive, what portion of the claim will the insurance company pay?

Accepted Answer

A)   $100
B)   $200
C)   $500
D)   $700
E)   $800F) A) and B)
G) B) and D)

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Zachary Harris owns a home in Elk City. There was a bad thunderstorm and his gazebo was hit by lightening and burned to the ground. What part of his homeowner's insurance policy would cover this loss?

Accepted Answer

A)   Buildings and other structures
B)   Additional living expenses
C)   Personal property
D)   Personal liability
E)   Specialized coverageF) A) and C)
G) B) and C)

Question 6

The purpose of financial responsibility laws is to:

Accepted Answer

A)   reduce auto insurance costs.
B)   assist poor drivers in getting insurance coverage.
C)   protect the public from financial losses due to auto accidents.
D)   require uninsured motorists coverage.
E)   help drivers with a clean driving record.F) B) and C)
G) C) and E)

Question 7

Personal belongings that have a high value require coverage with a personal property floater.

Accepted Answer

A) True 
 B)False

Question 8

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)   Financial responsibility coverage
C)   Comprehensive system
D)   No-fault insurance
E)   Uninsured motorists protectionF) B) and E)
G) A) and B)

Question 9

Approximately what percent of people who rent have purchased renter's insurance?

Accepted Answer

A)   10
B)   20
C)   40
D)   60
E)   75F) D) and E)
G) A) and D)

Question 10

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

Question 11

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) A) and E)
G) B) and E)

Question 12

Starting a small business that may or may not succeed is an example of ___________ risk.

Accepted Answer

A)   speculative
B)   pure
C)   commercial
D)   personal
E)   liabilityF) None of the above
G) A) and B)

Question 13

Comprehensive coverage would cover financial losses due to:

Accepted Answer

A)   injuries caused by a driver without insurance.
B)   damage to your car in an accident for which you were at fault.
C)   damage to your car caused by wind or hail.
D)   legal action against you for an accident.
E)   damage to a neighbor's tree caused by your car.F) A) and E)
G) A) and D)

Question 14

Self-insurance is the process of establishing a monetary fund that can be used to cover the cost of a loss.

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
C)   Collision
D)   Wage loss
E)   Medical paymentsF) B) and C)
G) All of the above

Question 16

____________ protects you against financial loss when your car damages the property of others.

Accepted Answer

A)   Collision
B)   Comprehensive physical damage
C)   Property damage liability
D)   No-fault insurance
E)   Assigned risk coverageF) A) and B)
G) A) and C)

Question 17

The purpose of a household inventory is to provide evidence of items covered by home insurance.

Accepted Answer

A) True 
 B)False

Question 18

The 500 in 200/500/50 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 all bodily injury claims from a single accident.F) B) and E)
G) B) and C)

Question 19

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

Question 20

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

Exam 10: Property and Motor Vehicle Insurance

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

The 500 in 200/500/50 refers to:

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

Peril is defined as:

Correct AnswerverifiedShow Answer

____________ protects you against financial loss when your car damages the property of others.

Correct AnswerverifiedShow Answer

The purpose of a household inventory is to provide evidence of items covered by home insurance.

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

Self-insurance is the process of establishing a monetary fund that can be used to cover the cost of a loss.

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

Zachary Harris owns a home in Elk City. There was a bad thunderstorm and his gazebo was hit by lightening and burned to the ground. What part of his homeowner's insurance policy would cover this loss?

Correct AnswerverifiedShow Answer

Personal belongings that have a high value require coverage with a personal property floater.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The purpose of financial responsibility laws is to:

Correct AnswerverifiedShow Answer

Comprehensive coverage would cover financial losses due to:

Correct AnswerverifiedShow Answer

Starting a small business that may or may not succeed is an example of ___________ risk.

Correct AnswerverifiedShow Answer

Approximately what percent of people who rent have purchased renter's insurance?

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

Wind damage occurs to your car costing $800 to repair. If you have a $100 deductible for collision and full coverage for comprehensive, what portion of the claim will the insurance company pay?

Correct AnswerverifiedShow Answer

The ____________ method to settle claims is based on the current replacement cost of a damaged or lost item less depreciation.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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