Question 1

Floods are covered under most homeowner's insurance policies.

Accepted Answer

A) True 
 B)False  False

Question 2

INSTRUCTIONS: Choose the word or phrase in [ ] that 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. 
The scope of coverage under Section I is greatest with an [ HO-1  | HO-5 ] policy.

Accepted Answer

b

Question 3

The personal property floater (PPF):

Accepted Answer

A)  provides either blanket or scheduled coverage of items that are not covered adequately in a standard homeowner's policy. 
B)  is available to meet the needs of "innocent" victims of accidents who are negligently injured by uninsured, underinsured, or hit-and-run motorists. 
C)  is a specialized inland marine policy covering boats and trailers used with boats. 
D)  covers against liability caused by the ownership or use of items of personal property. 
E)  is an additional amount of insurance equal to a specified percentage of the replacement value of the property. 
A)  provides either blanket or scheduled coverage of items that are not covered adequately in a standard homeowner's policy. 
B)  is available to meet the needs of "innocent" victims of accidents who are negligently injured by uninsured, underinsured, or hit-and-run motorists. 
C)  is a specialized inland marine policy covering boats and trailers used with boats. 
D)  covers against liability caused by the ownership or use of items of personal property. 
E)  is an additional amount of insurance equal to a specified percentage of the replacement value of the property. A

Question 4

The principle of indemnity states that the insured cannot be compensated for an amount exceeding the insured's economic loss.

Accepted Answer

A) True 
 B)False

Question 5

INSTRUCTIONS: Choose the word or phrase in [ ] that 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 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 INSTRUCTIONS: Choose the word or phrase in...

Question 6

Homeowner's co-insurance requires the insured to carry insurance protection equal to the market value of the house.

Accepted Answer

A) True 
 B)False

Question 7

The principle of indemnity will prevent:

Accepted Answer

A)  the act of one person being assigned to another. 
B)  an insured from collecting more than what he or she has lost. 
C)  a negligent third party from being held liable for damages if the injured party is insured. 
D)  a significant amount of loss control activity. 
E)  an insurer from ever waiving its right to subrogation. 
A)  the act of one person being assigned to another. 
B)  an insured from collecting more than what he or she has lost. 
C)  a negligent third party from being held liable for damages if the injured party is insured. 
D)  a significant amount of loss control activity. 
E)  an insurer from ever waiving its right to subrogation.

Question 8

INSTRUCTIONS: Choose the word or phrase in [ ] that 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. 
Compulsory auto insurance laws require motorists to show evidence of insurance [ before receiving their license plates | only after being involved in an accident ].

Accepted Answer

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

Question 9

The federal government has established a subsidized flood insurance program for homeowners and tenants living in designated communities.

Accepted Answer

A) True 
 B)False

Question 10

Donna, who is single and 30 years old, received several speeding tickets recently and was shocked by the effect they had on her auto insurance. Donna drives a 2017 Pontiac Firebird. She is currently not covered by health insurance, has an emergency fund of $25,000, an income of $100,000 per year, and an investment portfolio of $230,000. She is trying to reduce the price of her auto insurance. Which of the following actions is most likely to help Donna reduce the price of her auto insurance?

Accepted Answer

A)  Maintaining her liability limits at current levels 
B)  Raising her medical payments coverage 
C)  Raising her deductible from $250 to $1,000 
D)  Maintaining her collision coverage at current levels 
E)  Raising her collision coverage by $10,000 
A)  Maintaining her liability limits at current levels 
B)  Raising her medical payments coverage 
C)  Raising her deductible from $250 to $1,000 
D)  Maintaining her collision coverage at current levels 
E)  Raising her collision coverage by $10,000

Question 11

A homeowner's policy does not provide protection for:

Accepted Answer

A)  the personal property of family members at home. 
B)  the personal property of family members who are in college. 
C)  a business unit's property valued below $2,500 while it is on the insured premises. 
D)  the personal property of tenants. 
E)  the personal property of family members who are traveling. 
A)  the personal property of family members at home. 
B)  the personal property of family members who are in college. 
C)  a business unit's property valued below $2,500 while it is on the insured premises. 
D)  the personal property of tenants. 
E)  the personal property of family members who are traveling.

Question 12

An insured does not get the right to arbitration when the:

Accepted Answer

A)  insurance company denies responsibility for the loss. 
B)  loss is of a relatively small value. 
C)  claim is assigned to a claims adjustor. 
D)  insured leaves the scene of the accident. 
E)  insured has made several claims from the insurance company. 
A)  insurance company denies responsibility for the loss. 
B)  loss is of a relatively small value. 
C)  claim is assigned to a claims adjustor. 
D)  insured leaves the scene of the accident. 
E)  insured has made several claims from the insurance company.

Question 13

Replacement-cost coverage is the reimbursement of:

Accepted Answer

A)  the cost of repairing or replacing damaged structures without deducting for depreciation. 
B)  reasonable living expenses while the insured's house is being repaired. 
C)  the cost of damages caused by perils other than those mentioned in the policy. 
D)  the cost of defending the insured. 
E)  the increase in the deductible to reduce the amount of the insurance premium. 
A)  the cost of repairing or replacing damaged structures without deducting for depreciation. 
B)  reasonable living expenses while the insured's house is being repaired. 
C)  the cost of damages caused by perils other than those mentioned in the policy. 
D)  the cost of defending the insured. 
E)  the increase in the deductible to reduce the amount of the insurance premium.

Question 14

Actual cash value is defined as replacement cost minus depreciation.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following obligations do most property insurance contracts impose on the property owner?

Accepted Answer

A)  Identify the perils against which protection is needed. 
B)  Divide and classify belongings as " personal property " and " business property. " 
C)  Complete a property inventory and designate a future value to each item listed in the inventory. 
D)  Arrange for a real estate appraiser to determine the value of the property. 
E)  Provide information related to previous rental history and claim history. 
A)  Identify the perils against which protection is needed. 
B)  Divide and classify belongings as " personal property " and " business property. " 
C)  Complete a property inventory and designate a future value to each item listed in the inventory. 
D)  Arrange for a real estate appraiser to determine the value of the property. 
E)  Provide information related to previous rental history and claim history.

Question 16

Negligence occurs when someone:

Accepted Answer

A)  is not insured. 
B)  fails to act as an insured. 
C)  fails to act in a reasonable manner. 
D)  admits an error. 
E)  causes an unintentional accident. 
A)  is not insured. 
B)  fails to act as an insured. 
C)  fails to act in a reasonable manner. 
D)  admits an error. 
E)  causes an unintentional accident.

Question 17

A homeowner's policy not only covers the persons named in the policy but also family members who live in the insured's home.

Accepted Answer

A) True 
 B)False

Question 18

INSTRUCTIONS: Choose the word or phrase in [ ] that 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 personal liability umbrella policy is designed to [ replace | supplement ] homeowner's and auto insurance liability coverage.

Accepted Answer

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

Question 19

The _____ is a good homeowner's policy for a condominium owner.

Accepted Answer

A)  HO-2 
B)  HO-3 
C)  HO-4 
D)  HO-6 
E)  HO-1 
A)  HO-2 
B)  HO-3 
C)  HO-4 
D)  HO-6 
E)  HO-1

Question 20

Section II of a homeowner's insurance policy covers:

Accepted Answer

A)  hospitalization costs for the insured. 
B)  damages caused by a covered peril. 
C)  living expenses while an insured's house is repaired. 
D)  paying successfully pursued liability claims against an insured. 
E)  damages caused by people renting the property. 
A)  hospitalization costs for the insured. 
B)  damages caused by a covered peril. 
C)  living expenses while an insured's house is repaired. 
D)  paying successfully pursued liability claims against an insured. 
E)  damages caused by people renting the property.

Floods are covered under most homeowner's insurance policies.

INSTRUCTIONS: Choose the word or phrase in [ ] that 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. The scope of coverage under Section I is greatest with an [ HO-1 | HO-5 ] policy.

The personal property floater (PPF):

The principle of indemnity states that the insured cannot be compensated for an amount exceeding the insured's economic loss.

Homeowner's co-insurance requires the insured to carry insurance protection equal to the market value of the house.

The principle of indemnity will prevent:

The federal government has established a subsidized flood insurance program for homeowners and tenants living in designated communities.

A homeowner's policy does not provide protection for:

An insured does not get the right to arbitration when the:

Replacement-cost coverage is the reimbursement of:

Actual cash value is defined as replacement cost minus depreciation.

Which of the following obligations do most property insurance contracts impose on the property owner?

Negligence occurs when someone:

A homeowner's policy not only covers the persons named in the policy but also family members who live in the insured's home.

The _____ is a good homeowner's policy for a condominium owner.

Section II of a homeowner's insurance policy covers:

Understanding the Financial Planning Process

Developing 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 and Real Estate

Planning for Retirement

Preserving Your Estate

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Exam 10: Protecting Your Property

Floods are covered under most homeowner's insurance policies.

INSTRUCTIONS: Choose the word or phrase in [ ] that 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. The scope of coverage under Section I is greatest with an [ HO-1 | HO-5 ] policy.

The personal property floater (PPF):

The principle of indemnity states that the insured cannot be compensated for an amount exceeding the insured's economic loss.

Homeowner's co-insurance requires the insured to carry insurance protection equal to the market value of the house.

The principle of indemnity will prevent:

The federal government has established a subsidized flood insurance program for homeowners and tenants living in designated communities.

A homeowner's policy does not provide protection for:

An insured does not get the right to arbitration when the:

Replacement-cost coverage is the reimbursement of:

Actual cash value is defined as replacement cost minus depreciation.

Which of the following obligations do most property insurance contracts impose on the property owner?

Negligence occurs when someone:

A homeowner's policy not only covers the persons named in the policy but also family members who live in the insured's home.

The _____ is a good homeowner's policy for a condominium owner.

Section II of a homeowner's insurance policy covers:

Understanding the Financial Planning Process

Developing 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 and Real Estate

Planning for Retirement

Preserving Your Estate

Filters