Exam 10: Protecting Your Property

Kevin,who has liability limits of $20,000/$40,000/$20,000 and a $500 collision deductible,is involved in an accident.Due to his negligence he runs into a Rolls Royce.Three people sustained bodily injuries in the Rolls Royce.The driver's injuries were worth $1,000,000,a passenger received injuries worth $12,500,and another passenger received injuries of $7,100.How much will the PAP pay for these bodily injuries?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Umbrella liability insurance is more likely to be needed by [higher | lower] income persons.

Section II of the homeowner's insurance contract covers

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Sally drove Jessie's car to the mall and was involved in an accident that was her fault.The primary auto insurance that will cover this accident is [Sally's | Jessie's].

Your auto liability insurance shows policy limits of $100,000/$300,000.This means

The form of homeowner's insurance that is incorrectly paired with the insured is

The basic principles of property and liability insurance pertain to:

A house with a replacement value of $110,000 is currently insured for $90,000.The house has suffered a $15,000 loss from windstorm damage.The insurance company will pay the full $15,000 less the deductible.

A $100,000/$300,000 bodily injury liability automobile policy could pay up to $100,000 to one person or up to $300,000 to several people seeking damages.

The Principle of Indemnity does NOT apply to life and health insurance.

The condominium owner would choose a ____ policy.

Your son left his skateboard at the bottom of the basement stairs.While going downstairs to change a broken light bulb,you step on the skateboard and break your ankle during the fall.Medical damages total $1,455.How much will your $140,000 homeowners' insurance policy pay for this accident? The policy has $100,000 comprehensive liability coverage and medical payments of $1,000/person.

The no-fault automobile insurance movement has had a major effect on auto insurance premiums.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -If you hit a deer with your car,payment will come from your [collision | comprehensive] protection.

While you were away on winter vacation,there was a severe snowstorm that caused your roof to cave in causing a $20,000 loss.Your H0-2 policy will cover this loss.

Liability coverage provides payment to the

Liability insurance generally provides some coverage for legal fees.

The Right of Subrogation allows the insured to get reimbursed for claims paid.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -An insurance adjustor is working for the [insurance company | claimant].

Auto insurance companies may offer premium discounts for