Exam 10: Managing Property and Liability Risk

Earthquake insurance is covered under the standard homeowner's insurance policies.

Dana Garcia has a renter's policy with a maximum limit for personal property of $30,000.When her apartment suffered fire damage,$15,000 of her personal property was destroyed.The insurance would pay no more than ____ in this case.

After purchasing a new computer,Sally met her friend Jason for lunch.On returning to her car,Sally discovered that her car had been broken into and her computer was gone.____ insurance will cover the damage to her car,and ____ insurance will cover the stolen computer. ​

Policy limits are the maximum dollar amounts that will be paid under the policy.

____ are independent business people who act as third-party links between insurers and insureds.

Property insurance protects you from financial losses resulting from the damage to or destruction of your property or possessions.

Both property and liability insurance protect you from financial losses resulting from damage to or destruction of your property.

Subrogation rights allow an insurer to take action against a negligent third party (and that party's insurance company)to obtain reimbursement for payments made to an insured.

In order for a potential loss to be insurable it must be

Insurance is one of the least-understood purchases we make.

Amy Lou Young purchased a health insurance policy with a $500 deductible and 40 percent coinsurance.If Amy Lou incurs $6,500 in covered medical expenses,her policy will pay

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.

Always notify the police and file a report when involved in an auto accident.

Insurance is designed to help people be better off after a loss than before the loss.

In no-fault states,the insurance company's rights to subrogate may be limited.

To meet the replacement-cost requirement,a homeowner must insure his or her home for at least 80 percent of its replacement value.

Buying an alarm system as an option on your new sports car is an example of​

Your auto liability coverage will usually protect you for liability claims when you drive a rental car.

Most insurance underwriting is done by the insurance company rather than the insurance agent.

is the auto insurance coverage that would yield the most significant savings if eliminated.