Question 1

Other-insurance clauses help prevent the violation of the principle of indemnity.

Accepted Answer

A) True 
 B)False

Question 2

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.
-Bill was the at-fault party when you and he collided.Your insurance company has paid for the damages to your car.Now,it intends to recover this money from Bill.This is the right of [subrogation | indemnification].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 3

Comprehensive automobile coverage refers to

Accepted Answer

A)  complete coverage including liability,medical payments,and damage to your auto. 
B)  coverage for damage to an insured automobile from perils other than collision. 
C)  coverage that adds items of property such as CB radios and telephones that are ordinarily excluded 
D)  coverage for bodily injuries suffered in an automobile accident. 
E)  none of the above. 
A)  complete coverage including liability,medical payments,and damage to your auto. 
B)  coverage for damage to an insured automobile from perils other than collision. 
C)  coverage that adds items of property such as CB radios and telephones that are ordinarily excluded 
D)  coverage for bodily injuries suffered in an automobile accident. 
E)  none of the above.

Question 4

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.
-You own your house.The amount of insurance coverage you will have on your furniture will be dependent upon [the replacement value of your house | the amount of insurance on your home].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 5

The principle of indemnity generally limits the amount that the insured may collect to the actual cash value of the property.

Accepted Answer

A) True 
 B)False

Question 6

Actual cash value provides coverage at the current market value of your property.

Accepted Answer

A) True 
 B)False

Question 7

A coinsurance clause will cause insurers to proportionately reduce claims payments unless you carry insurance up to a specific amount,such as 80 percent of the replacement value.

Accepted Answer

A) True 
 B)False

Question 8

For an extra premium,the HO-3 homeowners policy pays based on replacement cost for

Accepted Answer

A)  the house. 
B)  contents. 
C)  both the house and contents. 
D)  cars. 
E)  none of these. 
A)  the house. 
B)  contents. 
C)  both the house and contents. 
D)  cars. 
E)  none of these.

Question 9

One should keep his personal property inventory in a separate location other than at home.

Accepted Answer

A) True 
 B)False

Question 10

The 80% coinsurance clause in a homeowner's policy would cause a reduction in the claim payment for a covered loss to the dwelling of $30,000 in which of the following cases:

Accepted Answer

A)  dwelling limit of $75,000,replacement cost of dwelling $90,000,actual cash value of dwelling $85,000 
B)  dwelling limit of $75,000,replacement cost of dwelling $100,000,actual cash value of dwelling $90,000 
C)  dwelling limit of $90,000,replacement cost of dwelling $90,000,actual cash value of dwelling $90,000 
D)  dwelling limit of $110,000,replacement cost of dwelling $110,000,actual cash value of dwelling $90,000 
E)  dwelling limit of $120,000,replacement cost of dwelling $100,000,actual cash value of dwelling $90,000 
A)  dwelling limit of $75,000,replacement cost of dwelling $90,000,actual cash value of dwelling $85,000 
B)  dwelling limit of $75,000,replacement cost of dwelling $100,000,actual cash value of dwelling $90,000 
C)  dwelling limit of $90,000,replacement cost of dwelling $90,000,actual cash value of dwelling $90,000 
D)  dwelling limit of $110,000,replacement cost of dwelling $110,000,actual cash value of dwelling $90,000 
E)  dwelling limit of $120,000,replacement cost of dwelling $100,000,actual cash value of dwelling $90,000

Question 11

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.
-A renters' policy typically [does | does not] provide protection against liability claims.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 12

Uninsured motorist coverage covers passengers in your car from losses caused by your negligence.

Accepted Answer

A) True 
 B)False

Question 13

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.
-To save HO insurance premiums,experts recommend that you should decrease your [deductible | liability coverage].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 14

The personal liability umbrella policy typically includes coverage for liability losses that are in excess of the limits purchased in the comprehensive personal liability coverage provided in the homeowners' policy.

Accepted Answer

A) True 
 B)False

Question 15

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.
-Earthquake policy and flood protection [would | would not] be provided by the standard HO policy.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 16

The basic principles of property and liability insurance pertain to:

Accepted Answer

A)  types of exposure 
B)  the principles of indemnity 
C)  coinsurance 
D)  all of the above 
A)  types of exposure 
B)  the principles of indemnity 
C)  coinsurance 
D)  all of the above

Question 17

The deductible on a standard homeowners' policy applies to

Accepted Answer

A)  coverage on the house. 
B)  coverage on personal property. 
C)  liability coverage. 
D)  a and b 
E)  a,b,and c 
A)  coverage on the house. 
B)  coverage on personal property. 
C)  liability coverage. 
D)  a and b 
E)  a,b,and c

Question 18

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.
-Automobile medical insurance is designed to pay for injuries to the [driver of your car | members in the car you hit].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 19

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.
-If you hit a deer with your car,payment will come from your [collision | comprehensive] protection.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 20

Under a coinsurance requirement of 80 percent,property with a replacement cost of $120,000 and an actual cash value of $90,000 is adequately insured with a policy for $80,000.

Accepted Answer

A) True 
 B)False

Other-insurance clauses help prevent the violation of the principle of indemnity.

Comprehensive automobile coverage refers to

The principle of indemnity generally limits the amount that the insured may collect to the actual cash value of the property.

Actual cash value provides coverage at the current market value of your property.

A coinsurance clause will cause insurers to proportionately reduce claims payments unless you carry insurance up to a specific amount,such as 80 percent of the replacement value.

For an extra premium,the HO-3 homeowners policy pays based on replacement cost for

One should keep his personal property inventory in a separate location other than at home.

The 80% coinsurance clause in a homeowner's policy would cause a reduction in the claim payment for a covered loss to the dwelling of $30,000 in which of the following cases:

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. -A renters' policy typically [does | does not] provide protection against liability claims.

Uninsured motorist coverage covers passengers in your car from losses caused by your negligence.

The personal liability umbrella policy typically includes coverage for liability losses that are in excess of the limits purchased in the comprehensive personal liability coverage provided in the homeowners' policy.

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. -Earthquake policy and flood protection [would | would not] be provided by the standard HO policy.

The basic principles of property and liability insurance pertain to:

The deductible on a standard homeowners' policy applies to

Under a coinsurance requirement of 80 percent,property with a replacement cost of $120,000 and an actual cash value of $90,000 is adequately insured with a policy for $80,000.

Understanding the Financial Planning Process

Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 10: Protecting Your Property

Other-insurance clauses help prevent the violation of the principle of indemnity.

Comprehensive automobile coverage refers to

The principle of indemnity generally limits the amount that the insured may collect to the actual cash value of the property.

Actual cash value provides coverage at the current market value of your property.

A coinsurance clause will cause insurers to proportionately reduce claims payments unless you carry insurance up to a specific amount,such as 80 percent of the replacement value.

For an extra premium,the HO-3 homeowners policy pays based on replacement cost for

One should keep his personal property inventory in a separate location other than at home.

The 80% coinsurance clause in a homeowner's policy would cause a reduction in the claim payment for a covered loss to the dwelling of $30,000 in which of the following cases:

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. -A renters' policy typically [does | does not] provide protection against liability claims.

Uninsured motorist coverage covers passengers in your car from losses caused by your negligence.

The personal liability umbrella policy typically includes coverage for liability losses that are in excess of the limits purchased in the comprehensive personal liability coverage provided in the homeowners' policy.

The basic principles of property and liability insurance pertain to:

The deductible on a standard homeowners' policy applies to

Under a coinsurance requirement of 80 percent,property with a replacement cost of $120,000 and an actual cash value of $90,000 is adequately insured with a policy for $80,000.

Understanding the Financial Planning Process

Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters