Exam 10: Protecting Your Property

The Thomson's house burned to the ground! They felt they were adequately covered (see coverage below).Their car (market value $10,000)was in the garage and totally destroyed.How much will they be reimbursed for their auto from their HO-3 policy?

Personal property floaters provide increased coverage for jewelry and other collectable items at an additional premium.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -[Most | Few] tenants carry renters insurance.

If you have an outstanding loan on your car,the contract will require you to carry ____ insurance.

You just purchased an older home with a market value of $100,000 and a replacement value of $180,000.What HO form would meet your needs?

Your homeowner's policy will pay for damage to the neighbor's property when your 10 year old son throws a rock through her picture window.

All property insurance companies require you to show the following when making a claim:

Premium discounts may result from

A personal property floater and a personal liability umbrella policy offer similar coverage.

The Right of Subrogation allows the insured to get reimbursed for claims paid.

Taking pictures is a good way to supplement a personal property inventory.

Common types of property that are subject to internal limits on homeowner's policies include

Auto medical payments cover

Financial responsibility laws in most states are high enough to adequately meet one's auto liability needs.

The federal government subsidizes the flood insurance program.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Most insurance companies [will | will not] offer good student discounts on car insurance premiums.

Kevin,who has liability limits of $20,000/$40,000/$20,000 and a $500 collision deductible,is involved in an accident.Due to his negligence he runs into a Rolls Royce.Three people sustained bodily injuries in the Rolls Royce.The driver's injuries were worth $1,000,000,a passenger received injuries worth $12,500,and another passenger received injuries of $7,100.How much will the PAP pay for these bodily injuries?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Most HO policies [would | would not] contain a clause requiring you to carry insurance equal to a minimum percent of the replacement value of your home in order to be paid in full for small losses.

The Thomson's house burned to the ground! They felt they were adequately covered (see coverage below).Their car (market value $10,000)was in the garage and totally destroyed.How much will they be reimbursed for their auto from their HO-3 policy? How much will the Thompsons be reimbursed for their home?

While you were away on your summer vacation,raccoons took up residence in your attic.They did $5,000 damage.Your H0-2 policy will cover this loss.