Exam 10: Managing Property and Liability Risk

Earthquake insurance is not part of standard homeowner's insurance policies but can be obtained through a separate policy or through an endorsement to your existing homeowner's policy.

When purchasing insurance,you should​

A person who leaves his or her insured car running when he or she runs into the convenience store provides an example of a ____ hazard.

Shelly and Chris have a homeowner's policy with $120,000 coverage,a $1,000 deductible,and required coverage of 80 percent of the replacement cost.Their home recently suffered extensive fire damage in the amount of $92,000.Assuming the replacement value of the home was $160,000,how much will the insurance company pay on this loss?​

Insurance covering the costs of major illness and injury would typically be considered necessary insurance.

Floater policies provide insurance protection for​

An addition to a standard insurance policy is called an endorsement.

Actual cash value of an asset represents the purchase price of the property less depreciation.

An insurance policy will pay the actual loss suffered not to exceed the policy limits.

Homeowner's insurance will pay for bodily injuries to visitors regardless of who is at fault for the loss.

Jeff apartment was broken into and his three-year-old TV was taken.Jeff had paid $900 for the TV,but it will cost $1,200 to replace the unit.What is the actual cash value of the TV assuming it has a life expectancy of nine years?​

Floater policies provide named-peril protection for movable personal property.

You can add coverage under your auto insurance policy to protect the driver and passengers in your car that is hit by an uninsured driver.

The fee charged for insurance protection is called a premium.

Reduced risk gives one the freedom to​

Which of the following types of insurance can be purchased only through a federal government program? ​

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

Premiums for automobile insurance are pretty much the same from company to company.

Recommended limits for auto liability insurance are at least​

The first step in creating an insurance contract is