Question 1

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) D) and E)
G) None of the above

Question 2

Hermione Granger borrowed her best friend's car and was in an accident.She was at fault.The car was totaled.What part of Hermione'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) A) and B)
G) C) and D)

Question 3

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

Accepted Answer

Subrogation is defined as the ...

Question 4

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

Accepted Answer

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

Question 5

Personal risks are the uncertainties surrounding the loss of income or life due to all except:

Accepted Answer

A)  professional misconduct.
B)  premature death.
C)  illness.
D)  disability.
E)  unemployment.F) D) and E)
G) B) and E)

Question 6

Self-insurance is part of:

Accepted Answer

A)  risk avoidance.
B)  risk assumption.
C)  risk shifting.
D)  risk reduction.
E)  endorsement.F) C) and D)
G) A) and D)

Question 7

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) All of the above
G) C) and D)

Question 8

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) B) and E)
G) B) and C)

Question 9

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) A) and E)

Question 10

An assigned risk pool:

Accepted Answer

A)  exists in every state.
B)  reduces medical costs associated with auto accidents.
C)  takes unsafe drivers off the road.
D)  reduces auto insurance premiums with state regulation.
E)  offers premium discounts to safe drivers.F) A) and E)
G) B) and D)

Question 11

Robert Plant pays a premium each month to State Farm Insurance for automobile insurance on his 2012 Dodge Ram pick-up truck.How is Robert managing his risk?

Accepted Answer

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

Question 12

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 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 injury or property damage of others?

Accepted Answer

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

Question 14

The legal responsibility for the financial cost of another person's losses or injuries is referred to as:

Accepted Answer

A)  theft.
B)  robbery.
C)  liability.
D)  assigned risk.
E)  collusion.F) D) and E)
G) B) and D)

Question 15

Which one of the following would be an example of a rating territory that helps determine insurance rates?

Accepted Answer

A)  Paul Carter drives a 2002 Volkswagen Eurovan.
B)  Mary Williams is 73 years old.
C)  Kathy Smith lives in Guthrie, Oklahoma.
D)  Jeremy Davis is married.
E)  John Brown has had three speeding tickets in five years.F) All of the above
G) A) and B)

Question 16

Albert Finney owns a home in Pompano Beach,Florida.His house is broken into and the burglar steals his computer,his big screen TV,his stereo equipment,and his toaster.What part of his homeowner's insurance would cover this loss?

Accepted Answer

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

Question 17

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

Question 18

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) A) and C)
G) C) and E)

Question 19

Defective house wiring is an example of a:

Accepted Answer

A)  hazard.
B)  peril.
C)  risk.
D)  speculation.
E)  planned danger.F) A) and D)
G) B) and D)

Question 20

Risk management is an organized strategy for protecting and conserving assets and people.

Accepted Answer

A) True 
 B)False

Exam 10: Property and Motor Vehicle Insurance

Risk management is an organized strategy for protecting and conserving assets and people.

Correct AnswerverifiedShow Answer

Albert Finney owns a home in Pompano Beach,Florida.His house is broken into and the burglar steals his computer,his big screen TV,his stereo equipment,and his toaster.What part of his homeowner's insurance would cover this loss?

Correct AnswerverifiedShow Answer

Robert Plant pays a premium each month to State Farm Insurance for automobile insurance on his 2012 Dodge Ram pick-up truck.How is Robert managing his risk?

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Self-insurance is part of:

Correct AnswerverifiedShow Answer

Personal risks are the uncertainties surrounding the loss of income or life due to all except:

Correct AnswerverifiedShow Answer

Negligence refers to:

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 injury or property damage of others?

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

Defective house wiring is an example of a:

Correct AnswerverifiedShow Answer

Which one of the following would be an example of a rating territory that helps determine insurance rates?

Correct AnswerverifiedShow Answer

The legal responsibility for the financial cost of another person's losses or injuries is referred to as:

Correct AnswerverifiedShow Answer

An assigned risk pool:

Correct AnswerverifiedShow Answer

The 500 in 200/500/50 refers to:

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

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

Correct AnswerverifiedShow Answer

The 100 in 100/300/50 refers to:

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

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Subrogation is defined as the ...
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