Question 1

To make sure all of your personal property is paid for in the event of a loss,it is a good idea to make an inventory of all household contents.Tell what should be included.

Accepted Answer

To establish proof of ownership and the ...

Question 2

If you have a significant amount of assets,most financial planners recommend the following automobile liability insurance limits.

Accepted Answer

A)   50/100/25
B)   100/300/100
C)   250/500/100
D)   500/1,000/250E) A) and D)
F) B) and D)

Question 3

No-fault insurance only pays for your losses if you were not at fault in the accident.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements best describes the 80 percent rule?

Accepted Answer

A)   Your home is covered for 80 percent of its original value, regardless of replacement cost.
B)   Your home is covered for replacement cost, provided the total premiums paid are less than 80 percent of the outstanding premiums due.
C)   Replacement cost coverage is only effective if your home is insured for at least 80 percent of its replacement cost.
D)   Your house cannot be replaced if its replacement cost is less than 80 percent of assessed market value.
E)   none of the aboveF) B) and D)
G) A) and C)

Question 5

Brandi thought it quite funny to have a decorative outhouse put on her property as a conversation piece.This structure is covered under Coverage A: Dwelling on her home owners policy.

Accepted Answer

A) True 
 B)False

Question 6

You have liability only coverage on your car.It was damaged in the parking lot by a hit-and-run driver.What coverage do you have for your damages?

Accepted Answer

A)   Their collision coverage
B)   Their liability coverage
C)   Your liability coverage
D)   None of the aboveE) A) and B)
F) B) and D)

Question 7

Explain Section I: Property Coverage for HO-2 and HO-3 policies.

Accepted Answer

Section I covers four major areas import...

Question 8

For a minor traffic accident,it is not necessary to call the police if you plan on submitting a claim to your insurance company.

Accepted Answer

A) True 
 B)False

Question 9

Your home and property have a market value of $200,000.Since you want to make sure that you meet the coinsurance provisions,you should have at least ________ of insurance.

Accepted Answer

A)   $160,000
B)   $180,000
C)   $200,000
D)   $220,000
E)   none of the aboveF) B) and E)
G) C) and D)

Question 10

Your backyard shed was damaged by a windstorm.Your coverage is based under Coverage D: Loss of Use.

Accepted Answer

A) True 
 B)False

Question 11

Deon tried to merge onto the Atlantic Expressway and caused a three-car accident.He has automobile insurance with limits of 50/100/25.What is the maximum amount that his insurance company will pay for the bodily injury liability claims?

Accepted Answer

A)   $50,000
B)   $75,000
C)   $100,000
D)   $125,000E) A) and D)
F) A) and C)

Question 12

While you were visiting a friend,someone robbed their apartment and stole your laptop computer.Unfortunately,they did not have renter's insurance.Where can you look for help to replace your computer?

Accepted Answer

A)   The landlord's loss of use coverage
B)   Your homeowner's insurance policy
C)   Your friend through small claims court
D)   None of the above are correct.E) All of the above
F) A) and C)

Question 13

Fire,theft,and windstorm damage are examples of

Accepted Answer

A)   perils.
B)   hazards.
C)   miscellaneous mishaps.
D)   liabilities.E) B) and C)
F) A) and D)

Question 14

The personal automobile policy (PAP)provides broad coverage,but there are a number of standard exceptions.Give five of them here.

Accepted Answer

You are not covered when:
-intentional i...

Question 15

You want to make an informed choice in buying auto insurance.You have studied the major cost determinants.Write a report in first person telling how they will affect you.

Accepted Answer

The sportier and more high-powered car I...

Question 16

Your best friend's apartment has just been robbed,and he had no insurance.What would you suggest to your friend to better protect himself from such losses in the future?

Accepted Answer

A)   Purchase renter's insurance and add a personal articles floater.
B)   Take out personal property replacement cost coverage.
C)   Take a written and video tape inventory of your property.
D)   Only B and C above
E)   A, B, and C aboveF) C) and E)
G) A) and B)

Question 17

Young ________ generally pay the most for their insurance,because they have a statistically greater chance of having an accident.

Accepted Answer

A)   married females
B)   unmarried males
C)   married males
D)   unmarried femalesE) All of the above
F) C) and D)

Question 18

A(n) ________ is an insurance company that distributes its products to customers without the use of agents.

Accepted Answer

A)   direct writer
B)   private writer
C)   underwriter
D)   public writerE) C) and D)
F) A) and B)

Question 19

Why is it a good idea for you to purchase uninsured and underinsured motorist coverage?

Accepted Answer

A)   15% of drivers have no automobile insurance.
B)   A majority of drivers only carry the legal minimum liability coverage.
C)   This coverage protects you and your passengers for medical expenses.
D)   All of the above are correct.E) B) and C)
F) A) and B)

Question 20

Give the three basic factors that determine the cost of your homeowner's insurance.List the possible ways of saving money on premiums.

Accepted Answer

The three basic factors are: (1)the loca...

Exam 10: Property and Liability Insurance

Deon tried to merge onto the Atlantic Expressway and caused a three-car accident.He has automobile insurance with limits of 50/100/25.What is the maximum amount that his insurance company will pay for the bodily injury liability claims?

Correct AnswerverifiedShow Answer

The personal automobile policy (PAP)provides broad coverage,but there are a number of standard exceptions.Give five of them here.

Correct AnswerverifiedYou are not covered when:-intentional i...View AnswerShow Answer

To make sure all of your personal property is paid for in the event of a loss,it is a good idea to make an inventory of all household contents.Tell what should be included.

Correct AnswerverifiedTo establish proof of ownership and the ...View AnswerShow Answer

You have liability only coverage on your car.It was damaged in the parking lot by a hit-and-run driver.What coverage do you have for your damages?

Correct AnswerverifiedShow Answer

If you have a significant amount of assets,most financial planners recommend the following automobile liability insurance limits.

Correct AnswerverifiedShow Answer

A(n) ________ is an insurance company that distributes its products to customers without the use of agents.

Correct AnswerverifiedShow Answer

Which of the following statements best describes the 80 percent rule?

Correct AnswerverifiedShow Answer

For a minor traffic accident,it is not necessary to call the police if you plan on submitting a claim to your insurance company.

Correct AnswerverifiedShow Answer

Explain Section I: Property Coverage for HO-2 and HO-3 policies.

Correct AnswerverifiedSection I covers four major areas import...View AnswerShow Answer

Young ________ generally pay the most for their insurance,because they have a statistically greater chance of having an accident.

Correct AnswerverifiedShow Answer

Fire,theft,and windstorm damage are examples of

Correct AnswerverifiedShow Answer

Your home and property have a market value of $200,000.Since you want to make sure that you meet the coinsurance provisions,you should have at least ________ of insurance.

Correct AnswerverifiedShow Answer

You want to make an informed choice in buying auto insurance.You have studied the major cost determinants.Write a report in first person telling how they will affect you.

Correct AnswerverifiedThe sportier and more high-powered car I...View AnswerShow Answer

While you were visiting a friend,someone robbed their apartment and stole your laptop computer.Unfortunately,they did not have renter's insurance.Where can you look for help to replace your computer?

Correct AnswerverifiedShow Answer

Your best friend's apartment has just been robbed,and he had no insurance.What would you suggest to your friend to better protect himself from such losses in the future?

Correct AnswerverifiedShow Answer

Your backyard shed was damaged by a windstorm.Your coverage is based under Coverage D: Loss of Use.

Correct AnswerverifiedShow Answer

Brandi thought it quite funny to have a decorative outhouse put on her property as a conversation piece.This structure is covered under Coverage A: Dwelling on her home owners policy.

Correct AnswerverifiedShow Answer

Give the three basic factors that determine the cost of your homeowner's insurance.List the possible ways of saving money on premiums.

Correct AnswerverifiedThe three basic factors are: (1)the loca...View AnswerShow Answer

No-fault insurance only pays for your losses if you were not at fault in the accident.

Correct AnswerverifiedShow Answer

Why is it a good idea for you to purchase uninsured and underinsured motorist coverage?

Correct AnswerverifiedShow Answer

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You are not covered when:
-intentional i...
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To establish proof of ownership and the ...
View Answer

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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Section I covers four major areas import...
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Correct Answer
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Correct Answer
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The sportier and more high-powered car I...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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The three basic factors are: (1)the loca...
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Correct Answer
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Correct Answer
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