Exam 10: Managing Property and Liability Risk

Recommended limits for auto liability insurance are at least

To meet the replacement-cost requirement,a homeowner must insure his or her home for at least 80 percent of its replacement value.

Connie and Sam's detached garage was recently destroyed by a tornado.Their house was insured for $135,000,and the detached structures coverage was 10 percent of the insured value of the home.The loss to the garage was valued at $15,000.The insurance company would pay ____ less the deductible on this loss.

________is the auto insurance coverage that would yield the most significant savings if eliminated.

Losses to ____ are not covered under a standard homeowner's policy.

Misty and her passenger,Angela,were involved in a one-car accident for which Misty was not at fault.Misty suffered bodily injuries of $5,500,while Angela's bodily injuries were $35,000.If Misty's auto insurance policy includes 20/40/15 bodily injury liability and $10,000 medical payments insurance,how much will the insurance policy pay for Misty and Angela's injuries?

Mac and his girlfriend,Jessica,were involved in an accident with another car,which was not Mac's fault.They both sustained minor injuries,and Mac's car needed $2,000 in repairs.Mac had automobile property and liability insurance coverage,and his company paid the covered claims promptly.Which of the following statements regarding this situation is false?

You have a homeowner's policy that insures no-fault medical payments up to $500 per person.During your daughter's first slumber party,the brass ceiling fan fell and injured your daughter and two of her guests.How much of the following medical expenses will your homeowner's policy pay under medical payments coverage? ​

All insurance policies list the perils that will be covered by the policy.

The financial product used for transferring and reducing risk by having a large number of people share in the financial losses suffered by members of the group is called

Automobile liability insurance covers the insured when he or she is held responsible for losses suffered by others.

Buying an insurance policy with a deductible is one way to assume risks that are affordable.

Good documentation is important when seeking reimbursement through insurance.

Automobile medical payments insurance will pay for the driver's injuries in an auto accident up to the policy limits.

Individuals who enter into,change,and cancel insurance policies on behalf of an insurance company that they represent are referred to as insurance

Insurance agents have the power to enter into,change,and cancel insurance policies on behalf of the companies they represent.

An insurance rate

It is in your best interest to sign an insurance release as soon as possible after a bodily injury loss has occurred.

Individual insurance buyers benefit whether or not they suffer a loss because risk reduction is a benefit.

If your windshield is broken by a rock as you drive down the road,the damages would be covered by your ____ coverage.