Exam 10: Managing Property and Liability Risk

Insurance that covers the cost of one's annual vision checkup and one pair of glasses annually would typically be considered important insurance.

While away at college,expensive items such as jewelry or computers may be subject to specific limits in the homeowner's insurance policy; ____ can be purchased for these items.

Which of the following is a not peril?

An addition to a standard insurance policy is called an endorsement.

The large-loss principle recommends that you insure the losses you can afford to suffer and assume the losses that you cannot afford to suffer.

The type(s) of insurance you carry but which covers losses suffered by others is called ____ insurance.

Milton can sell his house for $175,000,but he has an outstanding mortgage of $195,000.Rather than selling the house,he is thinking about "helping" it burn to the ground so he could collect the $190,000 for which the house is insured.This would be an example of a ____ hazard.

Insurance companies often limit or deny coverage if a loss occurs as a result of a moral hazard.

The process of collecting on your property losses begins with ____ and ends with your ____.

Insurance can be purchased for a speculative risk but not for a pure risk.

Both property and liability insurance protect you from financial losses resulting from damage to or destruction of your property.

Your collision coverage generally protects you when you drive

The amount of reimbursement for any loss under homeowner's insurance will be calculated using the actual-cash-value formula.

Policy limits are the maximum dollar amounts that will be paid under the policy.

Premiums for automobile insurance are pretty much the same from company to company.

Insurance companies often limit or deny coverage if a loss occurs as a result of a ____ hazard.

Bruce's 2003 Chevrolet Malibu is pretty old now,and its resale value is low.Since he is always interested in saving insurance premium dollars when appropriate,which of the following types of insurance should he consider dropping?

Victoria has a homeowner's policy with personal property coverage of 50 percent of insurance on her home.What will the insurance company pay for her stolen property under the following situation? ​ ​ Contents replacement-cost coverage

Uninsured motorist coverage is not recommended because it is expensive and state laws require all drivers to carry liability insurance.

An individual's success in giving up smoking is an example of loss control.