Exam 10: Property and Liability Insurance

Combined single limit liability coverage allows for either separate coverage limits for bodily injury and property damage, split-coverage limits per person, or both.

Free

(True/False)

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Question 1

Correct Answer:

Verified

False

Give the three basic factors that determine the cost of your homeowner's insurance. List the possible ways of saving money on premiums.

Free

(Essay)

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Question 2

Correct Answer:

Verified

The three basic factors are:(1) the location of your home, (2) its type of structure, and (3) your level of coverage and policy type.Possible ways of saving on premiums include:
-Take as high of a deductible as you can afford.
-Install a security system, smoke detectors, and fire extinguishers.
-Ask for a multiple policy discount with your car insurer-pay premiums annually.
-Ask for other discounts.
-Consider a direct writer.
-Shop around and get bids from several agents.
-Doublecheck your policy to make sure you have the coverage you need.

Toldae and Natasha were driving their friends home when they rear-ended another car. They are worried about paying for the medical bills and possibly getting sued. Who will be covered under their Part B: Medical expense coverage?

Free

(Multiple Choice)

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Question 3

Correct Answer:

Verified

In the event of a loss you should do all of the following except

(Multiple Choice)

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Question 4

Two of the determinants of the cost of your automobile insurance are the use and type of your automobile.

(True/False)

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Question 5

The recommended limit on both collision and comprehensive physical coverage damage is the cash value of your automobile.

(True/False)

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Question 6

Your home and property have a market value of $200,000. Since you want to make sure that you meet the coinsurance provisions, you should have at least ________ of insurance.

(Multiple Choice)

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Question 7

Comprehensive physical damage coverage would cover damage if your car were hit in a parking lot.

(True/False)

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Question 8

An attached garage is covered under Coverage B: Other structures.

(True/False)

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Question 9

What are the areas covered in Part A: Liability coverage in a personal automobile policy?

(Multiple Choice)

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Question 10

Amy Lambert's home is insured for $85,000 and her detached garage is destroyed by a windstorm. She hopes to collect $11,850 under her homeowner's policy. What will happen?

(Multiple Choice)

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Question 11

Your boyfriend is living in an apartment complex that has had a recent rash of robberies. He has $5,000 worth of rare coins. What should he do to protect himself in case of a robbery?

(Multiple Choice)

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Question 12

Brandi thought it quite funny to have a decorative outhouse put on her property as a conversation piece. This structure is covered under Coverage A: Dwelling on her home owners policy.

(True/False)

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(34)

Question 13

You have liability only coverage on your car. It was damaged in the parking lot by a hit-and-run driver. What coverage do you have for your damages?

(Multiple Choice)

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Question 14

Your home and property have a market value of $240,000. To meet the coinsurance provision, you would need at least ________ of insurance.

(Multiple Choice)

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Question 15

In addition to paying the policy limits for the damages you caused, the insurer also agrees under Part A to defend you in any civil cases arising from the accident and to pay all legal costs.

(True/False)

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(31)

Question 16

Your apartment building burned down while you were on vacation. Fortunately, you have renter's insurance. What will your policy cover?

(Multiple Choice)

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Question 17

Your home was damaged by a hail storm. This will require a police report in order for you to file a claim.

(True/False)

4.9/5

(35)

Question 18

The greater your financial assets, the less automobile insurance coverage you should carry because you can afford the financial loss.

(True/False)

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(31)

Question 19

Supplemental coverage for homeowner's insurance is available through endorsements. Which one of the following is not a common form of additional coverage?

(Multiple Choice)

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Question 20

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Combined single limit liability coverage allows for either separate coverage limits for bodily injury and property damage, split-coverage limits per person, or both.

Give the three basic factors that determine the cost of your homeowner's insurance. List the possible ways of saving money on premiums.

Toldae and Natasha were driving their friends home when they rear-ended another car. They are worried about paying for the medical bills and possibly getting sued. Who will be covered under their Part B: Medical expense coverage?

In the event of a loss you should do all of the following except

Two of the determinants of the cost of your automobile insurance are the use and type of your automobile.

The recommended limit on both collision and comprehensive physical coverage damage is the cash value of your automobile.

Your home and property have a market value of $200,000. Since you want to make sure that you meet the coinsurance provisions, you should have at least ________ of insurance.

Comprehensive physical damage coverage would cover damage if your car were hit in a parking lot.

An attached garage is covered under Coverage B: Other structures.

What are the areas covered in Part A: Liability coverage in a personal automobile policy?

Amy Lambert's home is insured for $85,000 and her detached garage is destroyed by a windstorm. She hopes to collect $11,850 under her homeowner's policy. What will happen?

Your boyfriend is living in an apartment complex that has had a recent rash of robberies. He has $5,000 worth of rare coins. What should he do to protect himself in case of a robbery?

Brandi thought it quite funny to have a decorative outhouse put on her property as a conversation piece. This structure is covered under Coverage A: Dwelling on her home owners policy.

You have liability only coverage on your car. It was damaged in the parking lot by a hit-and-run driver. What coverage do you have for your damages?

Your home and property have a market value of $240,000. To meet the coinsurance provision, you would need at least ________ of insurance.

In addition to paying the policy limits for the damages you caused, the insurer also agrees under Part A to defend you in any civil cases arising from the accident and to pay all legal costs.

Your apartment building burned down while you were on vacation. Fortunately, you have renter's insurance. What will your policy cover?

Your home was damaged by a hail storm. This will require a police report in order for you to file a claim.

The greater your financial assets, the less automobile insurance coverage you should carry because you can afford the financial loss.

Supplemental coverage for homeowner's insurance is available through endorsements. Which one of the following is not a common form of additional coverage?

The Financial Planning Process

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Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

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Using Credit Cards: The Role of Open Credit

Using Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Investment Basics

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Mutual Funds: An Easy Way to Diversify

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