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

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 -Medical payments coverage [would | would not] pay for the medical bills of passengers in your car who are not related to you.

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 -Your house has a replacement value of $120,000.Your HO policy has an 80% co-insurance clause.In order to receive full compensation if your house is totally destroyed,you must carry insurance for [$96,000 | $120,000].

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

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?

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

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 -Negligent acts must be [intentional | unintentional] in order to be insured.

Coinsurance is a policy provision to discourage the policyholder from being

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 -Actual cash value (ACV)is calculated by subtracting depreciation from the [purchase price | replacement cost] of an item.

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 -Research shows that people with [lower | higher] credit scores tend to file more insurance claims.

HO-4 and HO-6 are for renters and owners of condominiums,respectively.

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

Automobile liability claims could potentially be more costly to you than car damage claims.

Who is covered under medical payment coverage of your automobile policy?

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 the Thompsons be reimbursed for their home?

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

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 -The Principle of [Indemnity | Peril] states that the insured may not be compensated by the insurance company in an amount exceeding the insured's economic loss.

Section II of a homeowner's insurance policy covers personal property and personal liability.

Section I of the homeowner's insurance policy covers

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