Exam 10: Protecting Your Property

Donna,who is single and 30-years-old,has received several speeding tickets recently and was shocked by the effect on her auto insurance.Donna drives a 2002 Pontiac Firebird,is currently not covered by health insurance,has an emergency fund of $25,000,an income of $100,000 per year,and an investment portfolio of $230,000.She is trying to reduce the price of her auto insurance.Which of the following actions is most likely to be advisable.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The factor that is likely to have the greatest effect on your automobile insurance is your [driving record | address].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Comprehensive | Named Peril] policy covers all perils unless they are specifically excluded.

Jamil and Vicky purchased a $200,000 homeowners policy for their house in 1988.They have renewed the policy each year since and have replacement coverage.This policy has a $1,000 deductible.Their home now has a replacement value of $275,000.Last week they came home to find a small fire which caused the following damages: How much will the insurance company pay for the $50,000 loss to their home?

Coinsurance is a policy provision to discourage the policyholder from being

Who is covered under medical payment coverage of your automobile policy?

Floods are specifically defined in homeowner's policies.

Uninsured motorist coverage covers passengers in your car from losses caused by your negligence.

The best place to buy automobile insurance is your insurance agent.

In order to collect under uninsured motorists coverage,three specific conditions must be in effect.They are:

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -When selling you a HO policy,your insurance agent will [require | suggest] that you prepare a personal property inventory.

The principle of indemnity would prevent:

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Marilee has insurance (which does not expire for another six months)on a house she recently sold to Claudia.Now the house has been flattened by a tornado.Marilee [can | cannot] collect on her policy.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -If you are sued,the liability portion of your property insurance [must | has no obligation to] defend you.

Section I of a homeowner's insurance policy covers the insured's dwelling unit,accompanying structures,and personal liaiblity.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -You will almost [never | always] need the services of a public claims adjustor to settle your claim with an insurance company.

The principle of indemnity states that the insured can be compensated for an amount equal to his economic loss.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The best place to buy automobile insurance is [auto dealer | finance company | independent agent].

Collision insurance pays for damage to your automobile regardless of who is at fault.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A renters' policy typically [does | does not] provide protection against liability claims.