Exam 10: Managing Property and Liability Risk

____ is not covered under your automobile bodily injury and property damage liability coverage (Section A).

Comprehensive automobile insurance protects against property damage losses caused by perils other than collision and rollover.

Minor injuries to passengers in your car would be covered by which of the following parts of your auto insurance policy?

If you have an insurance policy with a $300 deductible and 30 percent coinsurance,you would pay 30 percent of your insured loss plus $300.

Stanley was involved in an auto accident that was ruled his fault.He carried only liability coverage on his car,and its limits were only 20/40/15.The following damages were incurred in the accident:  ​ ​ How much of these damages will Stanley's auto insurance policy pay?

A standard homeowner's insurance policy provides protection from various types of property losses such as damage to all except

Justin has auto insurance coverage of 25/75/15 for his new Nissan.Being a nice guy,Justin lets his friend use the car.The friend was involved in a major accident and was at fault.Following are the damages: ​ How much will Justin's auto insurance pay for the above damages?

Installing a smoke detector in your home is an example of loss control.

Independent agents typically represent more than one insurance company.

Automobile medical payments insurance would pay for your daughter's injuries if she were hit by an automobile while riding her bicycle.

The federal government administers the National Flood Insurance Program.

Melvin has an auto insurance policy that includes both collision and comprehensive coverage.He has a $250 deductible on his collision coverage and a $100 deductible on his comprehensive coverage.His car has a book value of $7,500 when he is in a one-car accident with a tree.The car suffers damages of $5,000.How much will Melvin's insurance company pay for this repair work?

Owning a big-screen TV is called a(n) ____,while the potential theft of that TV is called a(n) ____.

____ policy forms are especially written for owners of older homes.

The insurance will pay the lesser of either the value that the insurance company puts on the vehicle or repair cost a vehicle that has been in a collision.

Members of your family are covered for small bodily injury losses under your homeowner's policy.

In insurance,risk is defined as the ____ a financial loss will occur.

The principle of indemnity is very difficult to apply to ____ insurance.

Cathy's apartment was broken into and her two-year-old sound system was taken.Cathy had paid $1,400 for the system,but it will cost $1,800 to replace the unit.She has a homeowner's policy with $20,000 coverage for personal property,a $200 deductible,and actual-cash-value coverage.How much will Cathy receive from the insurance to cover this loss assuming the life expectancy of the system is ten years?

Which of the following coverages are relatively inexpensive to carry?