Exam 10: Managing Property and Liability Risk

Contents replacement-cost protection is an option available on some homeowner's insurance policies (including the renter's form)that pays the full replacement cost of any personal property.

Many people do not examine their insurance policies until they suffer a loss.

For couples with two vehicles,each should be owned separately.

The maximum possible loss that can occur helps one​

Steep staircases with no lighting are an example of a​

Auto insurance typically pays only the value that it puts on the vehicle when an automobile is totally destroyed.

A temporary insurance policy that is typically issued when one applies for insurance is called a(n)

Risk is the uncertainty about whether a financial loss will occur and how large the loss will be.

Owning a motorcycle is an example of a peril.

The homeowner's policy written for condominium owners does not provide which of the following coverages?

____ is not covered under your automobile bodily injury and property damage liability coverage (Section A).

Which of the following methods is appropriate for determining the value of your home?

Which of the following ways of valuing personal property is the highest for most personal property?

Buying an insurance policy with a deductible is one way to assume risks that are affordable.

While away at college,expensive items such as jewelry or computers may be subject to specific limits in the homeowner's insurance policy;____ can be purchased for these items.

Cathy's apartment was broken into and her two-year-old sound system was taken.Cathy had paid $1,400 for the system,but it will cost $1,800 to replace the unit.She has a homeowner's policy with $20,000 coverage for personal property,a $200 deductible,and actual-cash-value coverage.How much will Cathy receive from the insurance to cover this loss assuming the life expectancy of the system is ten years?​

The decision not to buy collision insurance on an old car is called​

Homeowner's policies may include a clause that automatically raises the policy coverage amount each year to keep pace with inflationary increases in the cost of replacing the dwelling.

Comprehensive automobile insurance protects against property damage losses caused by perils.Which one of the following is not a covered peril?​

Your understanding of insurance policy provisions is enhanced if you focus on ____ covered.