Exam 10: Protecting Your Property

Jim drove his car into a home and wiped out the car in front of him,the home,and a pedestrian.Jim has auto liability insurance of 25/50/10.He also has medical payments coverage of $1,000 and a $250 deductible on his collision coverage.The following damage resulted: How much will Jim's auto insurance coverage pay for this accident? How much will Jim be personally responsible for?

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 -Section II of a homeowner's insurance policy covers [dwelling | personal liability].

The premiums for homeowners' insurance are based on size of deductible,internal limits,and standard coverage.

Jamil and Vicky purchased a $200,000 homeowners policy for their house in 1988.They have renewed the policy each year since and have replacement coverage.This policy has a $1,000 deductible.Their home now has a replacement value of $275,000.Last week they came home to find a small fire which caused the following damages: How much will the insurance company pay for the $50,000 loss to their home?

In order to collect under uninsured motorists coverage,three specific conditions must be in effect.They are:

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 -When selling you a HO policy,your insurance agent will [require | suggest] that you prepare a personal property inventory. 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 automobile liability insurance policy covers the insured and residents of his/her household when driving an owned automobile.

Connie rented a hotel room while on vacation.If someone breaks into her room,her HO-4 policy will cover her stolen 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 -During your lifetime,you are more likely to be sued for negligence as a result of owning a [car | 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 -The best place to buy automobile insurance is [auto dealer | finance company | independent agent].

Tom visits George at his ranch.Although a novice on horseback,Tom decides to join George in a morning ride.George recommends that Tom ride an unbroken stallion named Satan.While mounting Satan,Tom is thrown headlong through the windshield of Tom's car.The damage to the car is $2,000 and Tom's own insurance pays him $1,500 ($500 deductible).Under what principle could Tom's insurance company sue George for his negligence?

Auto insurance companies may offer premium discounts for

Comprehensive automobile coverage refers to

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 -An insurance adjustor is working for the [insurance company | claimant].

Auto medical payments cover

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.

If your insurance company makes a payment to you,subrogation is the right of the company to collect from the person causing the accident or from his/her insurance company.

The principle of indemnity states that the insured can be compensated for an amount equal to his economic loss.

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 -[Comprehensive | Named Peril] policy covers all perils unless they are specifically excluded.

One should never admit fault at the scene of an accident.