Exam 10: Protecting Your Property

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.1779:1779 -Automobile medical insurance is designed to pay for injuries to the [driver of your car | members in the car you hit].

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.1779:1779 -[HO-2 | HO-3] is an example of a named peril policy.

Careful drivers have limited need for liability protection,because they are not likely to be at fault in an accident.

A standard HO policy covers damage from most weather-related perils except

Which of the following events would probably increase your auto premiums?

A liability suit could result when

The deductible on a standard homeowners' policy applies to

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:

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.1779:1779 -Uninsured motorist insurance is quite [expensive | inexpensive].

Collision insurance pays for damage to your automobile regardless of who is at fault.

Actual cash value is defined as replacement cost minus depreciation.

Replacement cost coverage is available for renters but requires an extra premium.

To reduce auto insurance premiums as your car depreciates in value,you should consider self-insuring which of the following risks?

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

A claims adjustor may work for

The insurance company will provide defense for a covered person against both civil and criminal charges involving her motor vehicle.

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

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.1779:1779 -Marilee has insurance (which does not expire for another six months)on a house she recently sold to Claudia.Now the house has been flattened by a tornado.Marilee [can | cannot] collect on her policy.

The HO-3 form is a good policy for first-time buyer owners because it is a named perils policy.

The Principle of Indemnity does NOT apply to life and health insurance.