Exam 10: Managing Property and Liability Risk

One can lower insurance premiums by doing all of the following except

Auto insurance typically pays only the value that it puts on the vehicle when an automobile is totally destroyed.

Coverage that appears to be provided in one part of an insurance policy may be denied elsewhere in the same policy.

Deciding not to drive a car is an example of handling risk through

Reduced risk gives one the freedom to

The person buying the insurance contract is called the insurer.

If a homeowner is considering insuring the home computer used in his or her home office,which of the following losses should be identified and evaluated?

Which of the following statements is not true about insurance deductibles?

The loss of property itself,extra expenses that may arise because the property is unusable for a period of time,and loss of income if the property was used in the insured's work are all types of ____ losses.

A risk transfer is any arrangement where an insurance company agrees to reimburse you for a financial loss.

What is the actual cash value for a computer with a life expectancy of seven years that was purchased two years ago for $1,800 and would cost $2,300 to replace?

Property owned for business purposes is covered under your homeowner's policy.

An umbrella-liability policy for liability losses can be affordable ways to follow the large-loss principle when buying insurance.

Which of the following methods is appropriate for determining the value of your home?

After a Halloween night of madness on Sixth Street,Mark and two friends took Mark's four-wheel-driving Bronco for a midnight tour of campus.The next morning campus police found Mark and his Bronco in the middle of the campus fountain.Of the various sections if Mark's auto insurance,damage to the fountain is covered by Mark's ____ coverage,and damage to the Bronco is covered by his ____ coverage.

Your understanding of insurance policy provisions is enhanced if you focus on ____ covered.

You can add coverage under your auto insurance policy to protect the driver and passengers in your car that is hit by an uninsured driver.

Automobile physical damage insurance provides protection from losses due to damage to your car from collision,theft,and other perils.

Insurance companies use statistical information to establish rates for various classes of insureds.

Homeowner's insurance will pay for bodily injuries to visitors regardless of who is at fault for the loss.