Question 1

Georgette Valentine has expensive photography equipment for use in her hobby. Which coverage from the following list would pay for damage or theft of this equipment?

Accepted Answer

A)   an umbrella policy
B)   a household inventory
C)   additional living expense coverage
D)   a personal articles endorsement
E)   a coinsurance floaterF) None of the above
G) B) and E)

Question 2

Peril

Accepted Answer

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

Question 3

____________ 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 payments
B)   No-fault insurance
C)   Uninsured motorist's protection
D)   Bodily injury liability
E)   Comprehensive insuranceF) A) and B)
G) None of the above

Question 4

The purpose of insurance is to help protect you and your family against financial hardship due to hazard, accident, death, and the like.

Accepted Answer

A) True 
 B)False

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) A) and E)
G) A) and D)

Question 6

Increased liability insurance is available with an umbrella policy.

Accepted Answer

A) True 
 B)False

Question 7

It is difficult to compare auto insurance among provinces because of the differences in cost structures and benefit levels between tort-based and no-fault systems.

Accepted Answer

A) True 
 B)False

Question 8

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) A) and C)
G) None of the above

Question 9

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)   voluntary property damages
B)   personal property
C)   medical payments
D)   additional living expenses
E)   personal liabilityF) C) and E)
G) A) and B)

Question 10

A home made of wood is more expensive to insure than a comparable brick structure.

Accepted Answer

A) True 
 B)False

Question 11

Property losses can be categorized into destruction of property, and losses due to robbery, burglary, vandalism, or arson.

Accepted Answer

A) True 
 B)False

Question 12

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

Question 13

The uncertainties of direct and indirect losses due to fire, wind, accident, theft, etc., are called ____________ risks.

Accepted Answer

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

Question 14

Personal articles endorsement is an additional property insurance to cover the damage or loss of a specific item of high value.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following insurance policy provisions requires that the insured must pay for part of the loss of a claim if the property is not insured for the specified percentage of replacement value?

Accepted Answer

A)   personal property floater
B)   an endorsement
C)   assigned risk clause
D)   umbrella coverage
E)   coinsurance clauseF) A) and E)
G) B) and D)

Question 16

Personal property refers to building and other structures covered by homeowner's insurance.

Accepted Answer

A) True 
 B)False

Question 17

An umbrella policy is designed to cover

Accepted Answer

A)   expensive personal property.
B)   additional buildings on your property.
C)   property when traveling away from home.
D)   flood damage
E)   major personal liability suits.F) B) and E)
G) C) and D)

Question 18

A speculative risk

Accepted Answer

A)   is the chance that something may be lost.
B)   is the cause of a possible loss.
C)   increases the likelihood of loss through some peril.
D)   is the uncertainty of direct or indirect loss to property due to fire, windstorms, accidents, theft and other hazards.
E)   is a risk that carries a chance of either loss or gain and are legally defined as uninsurable.F) B) and E)
G) D) and E)

Question 19

Which of the following is considered personal property for home insurance coverage?

Accepted Answer

A)   your automobile
B)   a fence
C)   a house
D)   furniture
E)   trees and shrubsF) None of the above
G) A) and E)

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 8: Home and Automobile Insurance

Peril

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Personal articles endorsement is an additional property insurance to cover the damage or loss of a specific item of high value.

Correct AnswerverifiedShow Answer

Increased liability insurance is available with an umbrella policy.

Correct AnswerverifiedShow Answer

The uncertainties of direct and indirect losses due to fire, wind, accident, theft, etc., are called ____________ risks.

Correct AnswerverifiedShow Answer

Property losses can be categorized into destruction of property, and losses due to robbery, burglary, vandalism, or arson.

Correct AnswerverifiedShow Answer

An umbrella policy is designed to cover

Correct AnswerverifiedShow Answer

Personal property refers to building and other structures covered by homeowner's insurance.

Correct AnswerverifiedShow Answer

Georgette Valentine has expensive photography equipment for use in her hobby. Which coverage from the following list would pay for damage or theft of this equipment?

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

Which of the following insurance policy provisions requires that the insured must pay for part of the loss of a claim if the property is not insured for the specified percentage of replacement value?

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

The purpose of insurance is to help protect you and your family against financial hardship due to hazard, accident, death, and the like.

Correct AnswerverifiedShow Answer

A home made of wood is more expensive to insure than a comparable brick structure.

Correct AnswerverifiedShow Answer

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

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

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

Correct AnswerverifiedShow Answer

Which of the following is considered personal property for home insurance coverage?

Correct AnswerverifiedShow Answer

It is difficult to compare auto insurance among provinces because of the differences in cost structures and benefit levels between tort-based and no-fault systems.

Correct AnswerverifiedShow Answer

A speculative risk

Correct AnswerverifiedShow Answer

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