Exam 10: Property and Liability Insurance

What is the main difference between replacement cost coverage and actual cash value coverage?

The inflation guard endorsement on your homeowners insurance policy automatically decreases your policy premiums each year due to the inflation rate.

Explain Section I: Property Coverage for HO-2 and HO-3 policies.

Young ________ generally pay the most for their insurance, because they have a statistically greater chance of having an accident.

Lisa and Eric were notified that replacement cost coverage is in effect on a home owner's policy only if the home is insured for at least 80% of its replacement cost. This provision is known as the ________.

Which of the following is not a determinant of the cost of your automobile insurance rates?

In you are involved in an automobile accident and suspect the other driver may have been driving under the influence, you should request that the police perform sobriety tests on both of you.

John Murphy experienced a freak storm that damaged his roof and allowed water to leak into the house. The agent and adjuster said the peril was not covered under his HO-2 policy. John wishes he had taken out an ________ policy.

Barbara is over 55 so she qualifies for additional home owner's insurance discounts.

You should not alter or repair any physical damages to your property until after the claims adjuster has investigated the loss.

Suppose that, during a party, one of your guests drove their car into the corner of your garage while turning around. Where would you look for damage payment to fix your garage?

A lower insurance credit score generally results in lower homeowner's insurance rates.

An HO-4 policy is a renter's insurance policy that protects the renter's personal property.

Since there were no witnesses to the robbery at your apartment, there is no reason to contact the police.

For structural damage to your dwelling, it would be a good idea to request for an estimate from a qualified contractor before accepting the check from your insurance company.

Verci and Banok skidded on the ice and hit a telephone pole. Their car suffered severe damage to the front end. This expense will be covered under part D called

Most companies allow six endorsements or supplemental coverages to meet their customers' needs. Name and describe the six. Which one is unique and stands apart from the others?

Angela's home became overrun with termites. She had to stay in an apartment temporarily while her home was being fixed. The provision on her home owners policy that covers her expenses while she is not able to live in her home is known as: Coverage D: Loss of Use.

Your assignment is to explain the basis for no-fault insurance. Do so in one brief, but thorough, paragraph.

Which of the following statements is true?