Question 1

Insurance companies often limit or deny coverage if a loss occurs as a result of a ____ hazard.

Accepted Answer

A)  ​moral 
B)  ​morale 
C)  ​physical 
D)  ​moral or morale 
A)  ​moral 
B)  ​morale 
C)  ​physical 
D)  ​moral or morale

Question 2

Connie and Sam's detached garage was recently destroyed by a tornado.Their house was insured for $135,000,and the detached structures coverage was 10 percent of the insured value of the home.The loss to the garage was valued at $15,000.The insurance company would pay ____ less the deductible on this loss.

Accepted Answer

A)  ​$15,000 
B)  ​$14,250 
C)  ​$12,000 
D)  ​$13,500 
A)  ​$15,000 
B)  ​$14,250 
C)  ​$12,000 
D)  ​$13,500

Question 3

When you sign a release,you are affirming
​

Accepted Answer

A)  ​whether a loss is covered. 
B)  ​the dollar amount of the loss. 
C)  ​whether a loss has occurred. 
D)  ​who will receive payment for the loss. 
A)  ​whether a loss is covered. 
B)  ​the dollar amount of the loss. 
C)  ​whether a loss has occurred. 
D)  ​who will receive payment for the loss.

Question 4

Automobile insurance combines property and liability coverage into a single policy.

Accepted Answer

A) True 
 B)False

Question 5

A standard homeowner's insurance policy provides protection from various types of property losses such as damage to all except

Accepted Answer

A)  ​a dwelling. 
B)  ​other structures on the property. 
C)  ​personal property and dwelling contents. 
D)  ​vehicles parked in an attached garage. 
A)  ​a dwelling. 
B)  ​other structures on the property. 
C)  ​personal property and dwelling contents. 
D)  ​vehicles parked in an attached garage.

Question 6

If you have an insurance policy with a $300 deductible and 30 percent coinsurance,you would pay 30 percent of your insured loss plus $300.

Accepted Answer

A) True 
 B)False

Question 7

A risk transfer is any arrangement where an insurance company agrees to reimburse you for a financial loss.

Accepted Answer

A) True 
 B)False

Question 8

The cost of a $1 million professional liability policy would vary slightly regardless of the profession of the policy buyer.

Accepted Answer

A) True 
 B)False

Question 9

Homeowner's insurance can pay for additional expenses such as temporary lodging and food as well as for repairing or replacing property.

Accepted Answer

A) True 
 B)False

Question 10

All states require automobile owners to purchase automobile insurance and to take financial responsibility for an accident that might occur.

Accepted Answer

A) True 
 B)False

Question 11

George and Kelly have a renter's policy with $1,000 per person no-fault medical payments coverage.Following a party at their home,Brian,one of their guests,fell on the stairs and broke his ankle.How much of the $1,850 medical bills will George and Kelly's renter's policy pay?

Accepted Answer

A)  ​$1,850 
B)  ​$1,000 
C)  ​$850 
D)  ​$0 
A)  ​$1,850 
B)  ​$1,000 
C)  ​$850 
D)  ​$0

Question 12

The contract between the person buying the insurance and the company providing the insurance is the

Accepted Answer

A)  ​Unilateral contract 
B)  ​Insuring agreements 
C)  ​Insurance policy 
D)  ​Insurance premium 
A)  ​Unilateral contract 
B)  ​Insuring agreements 
C)  ​Insurance policy 
D)  ​Insurance premium

Question 13

The HO-6 form is especially written to meet the needs of condominium owners.

Accepted Answer

A) True 
 B)False

Question 14

The financial product used for transferring and reducing risk by having a large number of people share in the financial losses suffered by members of the group is called​

Accepted Answer

A)  ​insurance 
B)  ​a premium. 
C)  ​fortuitous 
D)  ​a peril. 
A)  ​insurance 
B)  ​a premium. 
C)  ​fortuitous 
D)  ​a peril.

Question 15

Andy and Ann live in a home with a replacement value of $164,000 and a market value of $175,000.In most cases,what is the minimum amount of homeowner's coverage they must carry to meet the replacement-cost requirement?

Accepted Answer

A)  ​$140,000 
B)  ​$175,000 
C)  ​$164,000 
D)  ​$131,200 
A)  ​$140,000 
B)  ​$175,000 
C)  ​$164,000 
D)  ​$131,200

Question 16

Theft damage is the most common peril for physical damage to automobiles.

Accepted Answer

A) True 
 B)False

Question 17

Uninsured motorist coverage is not recommended because it is expensive and state laws require all drivers to carry liability insurance.

Accepted Answer

A) True 
 B)False

Question 18

The law of large numbers increases risk for the insurance company.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following perils is not covered under any of the standard homeowner's forms?

Accepted Answer

A)  ​Windstorm 
B)  ​Theft 
C)  ​Smoke 
D)  ​Flood 
A)  ​Windstorm 
B)  ​Theft 
C)  ​Smoke 
D)  ​Flood

Question 20

Deductibles are requirements that the insured pay an initial portion of any loss.

Accepted Answer

A) True 
 B)False

Insurance companies often limit or deny coverage if a loss occurs as a result of a ____ hazard.

When you sign a release,you are affirming

Automobile insurance combines property and liability coverage into a single policy.

A standard homeowner's insurance policy provides protection from various types of property losses such as damage to all except

If you have an insurance policy with a $300 deductible and 30 percent coinsurance,you would pay 30 percent of your insured loss plus $300.

A risk transfer is any arrangement where an insurance company agrees to reimburse you for a financial loss.

The cost of a $1 million professional liability policy would vary slightly regardless of the profession of the policy buyer.

Homeowner's insurance can pay for additional expenses such as temporary lodging and food as well as for repairing or replacing property.

All states require automobile owners to purchase automobile insurance and to take financial responsibility for an accident that might occur.

George and Kelly have a renter's policy with $1,000 per person no-fault medical payments coverage.Following a party at their home,Brian,one of their guests,fell on the stairs and broke his ankle.How much of the $1,850 medical bills will George and Kelly's renter's policy pay?

The contract between the person buying the insurance and the company providing the insurance is the

The HO-6 form is especially written to meet the needs of condominium owners.

The financial product used for transferring and reducing risk by having a large number of people share in the financial losses suffered by members of the group is called

Andy and Ann live in a home with a replacement value of $164,000 and a market value of $175,000.In most cases,what is the minimum amount of homeowner's coverage they must carry to meet the replacement-cost requirement?

Theft damage is the most common peril for physical damage to automobiles.

Uninsured motorist coverage is not recommended because it is expensive and state laws require all drivers to carry liability insurance.

The law of large numbers increases risk for the insurance company.

Which of the following perils is not covered under any of the standard homeowner's forms?

Deductibles are requirements that the insured pay an initial portion of any loss.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Investing Through Mutual Funds

Real Estate and High-Risk Investments

Retirement Planning

Filters

Exam 10: Managing Property and Liability Risk

Insurance companies often limit or deny coverage if a loss occurs as a result of a ____ hazard.

When you sign a release,you are affirming ​

Automobile insurance combines property and liability coverage into a single policy.

A standard homeowner's insurance policy provides protection from various types of property losses such as damage to all except

If you have an insurance policy with a $300 deductible and 30 percent coinsurance,you would pay 30 percent of your insured loss plus $300.

A risk transfer is any arrangement where an insurance company agrees to reimburse you for a financial loss.

The cost of a $1 million professional liability policy would vary slightly regardless of the profession of the policy buyer.

Homeowner's insurance can pay for additional expenses such as temporary lodging and food as well as for repairing or replacing property.

All states require automobile owners to purchase automobile insurance and to take financial responsibility for an accident that might occur.

George and Kelly have a renter's policy with $1,000 per person no-fault medical payments coverage.Following a party at their home,Brian,one of their guests,fell on the stairs and broke his ankle.How much of the $1,850 medical bills will George and Kelly's renter's policy pay?

The contract between the person buying the insurance and the company providing the insurance is the

The HO-6 form is especially written to meet the needs of condominium owners.

The financial product used for transferring and reducing risk by having a large number of people share in the financial losses suffered by members of the group is called​

Andy and Ann live in a home with a replacement value of $164,000 and a market value of $175,000.In most cases,what is the minimum amount of homeowner's coverage they must carry to meet the replacement-cost requirement?

Theft damage is the most common peril for physical damage to automobiles.

Uninsured motorist coverage is not recommended because it is expensive and state laws require all drivers to carry liability insurance.

The law of large numbers increases risk for the insurance company.

Which of the following perils is not covered under any of the standard homeowner's forms?

Deductibles are requirements that the insured pay an initial portion of any loss.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Investing Through Mutual Funds

Real Estate and High-Risk Investments

Retirement Planning

Filters

When you sign a release,you are affirming

The financial product used for transferring and reducing risk by having a large number of people share in the financial losses suffered by members of the group is called