Question 1

A homeowner's policy does not provide protection for the personal property of

Accepted Answer

A)  family members at home. 
B)  family members while in college. 
C)  guests. 
D)  tenants. 
E)  family members traveling. 
A)  family members at home. 
B)  family members while in college. 
C)  guests. 
D)  tenants. 
E)  family members traveling.

Question 2

The asset most likely to be specifically itemized in a property insurance endorsement is

Accepted Answer

A)  sofa. 
B)  clothing. 
C)  jewelry. 
D)  garden equipment. 
E)  all of these. 
A)  sofa. 
B)  clothing. 
C)  jewelry. 
D)  garden equipment. 
E)  all of these.

Question 3

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
-A mobile home is [less | more] likely to suffer a complete loss than a conventional house.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 4

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 5

Property insurance is meant to protect property owners from two basic types of exposures,physical loss of property and loss through depreciation.

Accepted Answer

A) True 
 B)False

Question 6

Homeowner's property insurance does not provide protection on the

Accepted Answer

A)  owned dwelling unit. 
B)  garage. 
C)  accompanying structures. 
D)  landscaping. 
E)  vacant lot. 
A)  owned dwelling unit. 
B)  garage. 
C)  accompanying structures. 
D)  landscaping. 
E)  vacant lot.

Question 7

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

Accepted Answer

The answer of Choose the word or phrase in [...

Question 8

George and Nancy had a $30,000 repair bill on their home after the tornado went through town.Their policy contained the usual 80% co-insurance clause.Their home's replacement value was $150,000;their policy coverage was $110,000 with a $250 deductible.
a.How much insurance should they have carried to meet the coinsurance obligation?
b.What percentage of this loss will the insurance company pay?
c.How much of the loss will George and Nancy have to absorb? (Show all work.)

Accepted Answer

a.Required coverage .80 * $150

Question 9

The most common definition of actual cash value is purchase price less depreciation.

Accepted Answer

A) True 
 B)False

Question 10

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 $10,000 stamp collection would be best protected under [your HO policy | a personal property floater].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 11

Your car is damaged by fire while parked in your garage.Protection would be provided by

Accepted Answer

A)  comprehensive auto coverage. 
B)  property damage liability coverage. 
C)  homeowner's personal property coverage. 
D)  homeowner's dwelling unit coverage. 
E)  auto collision coverage. 
A)  comprehensive auto coverage. 
B)  property damage liability coverage. 
C)  homeowner's personal property coverage. 
D)  homeowner's dwelling unit coverage. 
E)  auto collision coverage.

Question 12

Carl and Alexandra 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:  
Assume Carl and Alexandra have a standard HO-3 policy with personal property covered at 50% and landscaping covered for 10%.How much will the insurance pay for the losses of their personal property and landscaping?

Accepted Answer

A)  $15,000 
B)  $ 9,700 
C)  $24,545 
D)  $27,000 
E)  $30,000 
A)  $15,000 
B)  $ 9,700 
C)  $24,545 
D)  $27,000 
E)  $30,000

Question 13

The type of car you drive has little effect on your auto insurance premiums.

Accepted Answer

A) True 
 B)False

Question 14

To save premium costs,one should decrease her deductible and liability coverage on a homeowners' policy.

Accepted Answer

A) True 
 B)False

Question 15

The federal government subsidizes the flood insurance program.

Accepted Answer

A) True 
 B)False

Question 16

Section I of a homeowner's insurance policy covers the insured's dwelling unit,accompanying structures,and personal liaiblity.

Accepted Answer

A) True 
 B)False

Question 17

The right of ____ gives the insurer the right to recover its costs from the at-fault party after the company has paid a claim to its insured.

Accepted Answer

A)  subrogation 
B)  indemnity 
C)  insurance interest 
D)  coinsurance 
E)  none of these 
A)  subrogation 
B)  indemnity 
C)  insurance interest 
D)  coinsurance 
E)  none of these

Question 18

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
-If your furniture in your rented apartment is destroyed by a fire,it [would | would not] be covered by your landlord's policy.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 19

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
-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 Choose the word or phrase in [...

Question 20

HO coinsurance requires the insured to carry insurance protection equal to the market value of the house.

Accepted Answer

A) True 
 B)False

A homeowner's policy does not provide protection for the personal property of

The asset most likely to be specifically itemized in a property insurance endorsement is

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 -A mobile home is [less | more] likely to suffer a complete loss than a conventional house.

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.

Property insurance is meant to protect property owners from two basic types of exposures,physical loss of property and loss through depreciation.

Homeowner's property insurance does not provide protection on the

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

The most common definition of actual cash value is purchase price less depreciation.

Your car is damaged by fire while parked in your garage.Protection would be provided by

The type of car you drive has little effect on your auto insurance premiums.

To save premium costs,one should decrease her deductible and liability coverage on a homeowners' policy.

The federal government subsidizes the flood insurance program.

Section I of a homeowner's insurance policy covers the insured's dwelling unit,accompanying structures,and personal liaiblity.

The right of ____ gives the insurer the right to recover its costs from the at-fault party after the company has paid a claim to its insured.

HO coinsurance requires the insured to carry insurance protection equal to the market value of the house.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

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

A homeowner's policy does not provide protection for the personal property of

The asset most likely to be specifically itemized in a property insurance endorsement is

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 -A mobile home is [less | more] likely to suffer a complete loss than a conventional house.

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.

Property insurance is meant to protect property owners from two basic types of exposures,physical loss of property and loss through depreciation.

Homeowner's property insurance does not provide protection on the

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

The most common definition of actual cash value is purchase price less depreciation.

Your car is damaged by fire while parked in your garage.Protection would be provided by

The type of car you drive has little effect on your auto insurance premiums.

To save premium costs,one should decrease her deductible and liability coverage on a homeowners' policy.

The federal government subsidizes the flood insurance program.

Section I of a homeowner's insurance policy covers the insured's dwelling unit,accompanying structures,and personal liaiblity.

The right of ____ gives the insurer the right to recover its costs from the at-fault party after the company has paid a claim to its insured.

HO coinsurance requires the insured to carry insurance protection equal to the market value of the house.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

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