Exam 10: Protecting Your Property

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -You own your house.The amount of insurance coverage you will have on your furniture will be dependent upon [the replacement value of your house | the amount of insurance on your home].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Uninsured motorist insurance is quite [expensive | inexpensive].

A captive agent represents many insurance companies.

A(n)____ agent represents multiple insurance companies.

Replacement cost coverage is available for renters but requires an extra premium.

The type of car you drive has little effect on your auto insurance premiums.

The right of ____ gives the insurer the right to recover its costs from the at-fault party after the company has paid a claim to its insured.

Financial responsibility laws in most states are high enough to adequately meet one's auto liability needs.

Homeowners' insurance will cover which of the following?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[HO-2 | HO-3] is an example of a named peril policy.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The Principle of [Indemnity | Peril] states that the insured may not be compensated by the insurance company in an amount exceeding the insured's economic loss.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Earthquake policy and flood protection [would | would not] be provided by the standard HO policy.

Jake drove Amanda's truck to the football bowl game because his car was broken.On the way home,Jake was involved in an accident that was his fault.The resulting liability damages totaled $85,000.Jake has $100,000 liability coverage on his car,and Amanda has $50,000 on her truck.How would the $85,000 liability damages be paid for this accident?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Actual cash value (ACV)is calculated by subtracting depreciation from the [purchase price | replacement cost] of an item.

You could save money on your car insurance premiums by

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Your house has a replacement value of $120,000.Your HO policy has an 80% co-insurance clause.In order to receive full compensation if your house is totally destroyed,you must carry insurance for [$96,000 | $120,000].

Auto insurance premiums are generally reduced by

Personal property floaters provide increased coverage for jewelry and other collectable items at an additional premium.

As a tenant,you would purchase a HO-3 policy.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Most HO policies [would | would not] contain a clause requiring you to carry insurance equal to a minimum percent of the replacement value of your home in order to be paid in full for small losses.