Question 1

Fewer than what percent of people who live in flood-prone areas have flood insurance?

Accepted Answer

A)  5
B)  15
C)  20
D)  30
E)  50F) A) and B)
G) D) and E)

Question 2

Possible losses due to negligence resulting in bodily injury or property damage to others are called ____________ risks.

Accepted Answer

A)  speculative
B)  liability
C)  property
D)  personal
E)  commercialF) B) and D)
G) A) and E)

Question 3

Home insurance rates are affected most directly by:

Accepted Answer

A)  the profits of the insurance company.
B)  insurance agents' commission.
C)  government regulations that set premiums.
D)  processing costs of claims.
E)  the number of claims in an area.F) A) and C)
G) A) and E)

Question 4

Larry Foster has bought a car with extra safety features,including front and side airbags and antilock brakes.How is Larry managing his risk?

Accepted Answer

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

Question 5

A parent may be held responsible for the actions of their child if those actions cause financial or physical harm to others.This is known as:

Accepted Answer

A)  negligence.
B)  strict liability.
C)  vicarious liability.
D)  umbrella coverage.
E)  self insurance.F) B) and D)
G) C) and D)

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 physical harm and property damage losses caused by drivers.
D)  require uninsured motorists coverage.
E)  help drivers with a clean driving record.F) B) and E)
G) A) and D)

Question 7

Risk management is an organized strategy for protecting assets and people and is considered a _____.

Accepted Answer

A)  one month process
B)  short-range process
C)  medium-range process
D)  long-range process
E)  non-planning processF) A) and D)
G) C) and D)

Question 8

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

Accepted Answer

A)  Automobile
B)  Garage
C)  Furniture
D)  House
E)  Trees and shrubsF) None of the above
G) D) and E)

Question 9

Kelly and Bob Walton recently purchased a new home and desire coverage for all causes of loss or damage except those specially excluded by the policy.They should obtain the ____________ form of homeowner's policy.

Accepted Answer

A)  basic
B)  broad
C)  special
D)  modified coverage
E)  condominiumF) A) and B)
G) A) and C)

Question 10

Which of the following is a list of personal belongings with purchase dates and cost information?

Accepted Answer

A)  Personal property floater
B)  Household inventory
C)  Additional living expense
D)  Umbrella policy
E)  Personal liability policyF) B) and E)
G) B) and D)

Question 11

Kyle Burroughs left his car parked on the street all night.When he came out in the morning all four of his tires had been slashed by vandals.What part of Kyle's automobile insurance would cover this damage?

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 E)

Question 12

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

Accepted Answer

The main influences on home insurance co...

Question 13

William Bennett owns a home in Tampa,Florida.There was a fire in his home and he and his family had to move to a hotel until his home could be fixed.What part of his homeowner's insurance policy would cover the cost of the hotel?

Accepted Answer

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

Question 14

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 D)
G) C) and E)

Question 15

Craig Brown owns a home in San Francisco,California.There is a major earthquake and his house is damaged by the earthquake.What type of insurance would he have to have to 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 E)
G) None of the above

Question 16

Which one of the following would not be considered personal property by a homeowner's insurance policy?

Accepted Answer

A)  Furniture
B)  Toaster
C)  Tool shed
D)  Clothing
E)  Shampoo machine rentalF) A) and C)
G) B) and D)

Question 17

Nick Wilson owns a home in Edmond,Oklahoma and pays $665 per year in insurance on the home.The $665 fee is an example of a:

Accepted Answer

A)  peril.
B)  hazard.
C)  risk.
D)  premium.
E)  liability.F) A) and B)
G) A) and C)

Question 18

Which one of the following insurance policy provisions requires the insured to pay for part of the loss if the property is not insured for the specified percentage of replacement value?

Accepted Answer

A)  Personal property floater
B)  An endorsement
C)  Coinsurance clause
D)  Umbrella coverage
E)  Assigned risk clauseF) None of the above
G) B) and D)

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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)  House and other structures
B)  Additional living expenses
C)  Personal property
D)  Personal liability
E)  Specialized coverageF) A) and D)
G) None of the above

Exam 10: Property and Motor Vehicle Insurance

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

Correct AnswerverifiedShow Answer

Which of the following is a list of personal belongings with purchase dates and cost information?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedThe main influences on home insurance co...View AnswerShow 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

Risk management is an organized strategy for protecting assets and people and is considered a _____.

Correct AnswerverifiedShow Answer

Which one of the following insurance policy provisions requires the insured to pay for part of the loss if the property is not insured for the specified percentage of replacement value?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Kyle Burroughs left his car parked on the street all night.When he came out in the morning all four of his tires had been slashed by vandals.What part of Kyle's automobile insurance would cover this damage?

Correct AnswerverifiedShow Answer

Craig Brown owns a home in San Francisco,California.There is a major earthquake and his house is damaged by the earthquake.What type of insurance would he have to have to cover this loss?

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

Which one of the following would not be considered personal property by a homeowner's insurance policy?

Correct AnswerverifiedShow Answer

Nick Wilson owns a home in Edmond,Oklahoma and pays $665 per year in insurance on the home.The $665 fee is an example of a:

Correct AnswerverifiedShow Answer

Larry Foster has bought a car with extra safety features,including front and side airbags and antilock brakes.How is Larry managing his risk?

Correct AnswerverifiedShow Answer

Home insurance rates are affected most directly by:

Correct AnswerverifiedShow Answer

The purpose of financial responsibility laws is to:

Correct AnswerverifiedShow Answer

Possible losses due to negligence resulting in bodily injury or property damage to others are called ____________ risks.

Correct AnswerverifiedShow Answer

A parent may be held responsible for the actions of their child if those actions cause financial or physical harm to others.This is known as:

Correct AnswerverifiedShow Answer

Fewer than what percent of people who live in flood-prone areas have flood insurance?

Correct AnswerverifiedShow Answer

Kelly and Bob Walton recently purchased a new home and desire coverage for all causes of loss or damage except those specially excluded by the policy.They should obtain the ____________ form of homeowner's policy.

Correct AnswerverifiedShow Answer

William Bennett owns a home in Tampa,Florida.There was a fire in his home and he and his family had to move to a hotel until his home could be fixed.What part of his homeowner's insurance policy would cover the cost of the hotel?

Correct AnswerverifiedShow Answer

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The main influences on home insurance co...
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