Exam 10: Managing Property and Liability Risk

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Automobile physical damage insurance provides protection from losses due to damage to your car from collision,theft,and other perils.

(True/False)
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Jennifer and Chad have a homeowner's policy with contents replacement-cost coverage for personal property up to 50 percent of the insurance on their home.What will the insurance company pay for their stolen property under the following situation? Insured value of house $90,000 Deductible $500 Actual cash value of stolen property $20,000 Replacement value of stolen property $35,000 ​

(Multiple Choice)
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Insurance can be purchased for a speculative risk but not for a pure risk.

(True/False)
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Individuals who enter into,change and cancel insurance policies on behalf of an insurance company that they represent are referred to as insurance

(Multiple Choice)
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Property damage liability claims tend to be considerably larger than bodily injury liability claims in auto insurance.

(True/False)
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Risk retention would be most appropriate in which of the following cases?​

(Multiple Choice)
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An umbrella liability policy provides​

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It is in your best interest to sign an insurance release as soon as possible after a bodily injury loss has occurred.

(True/False)
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Fortuitous means unexpected both in terms of timing and magnitude.

(True/False)
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Independent agents typically represent more than one insurance company.

(True/False)
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Frank tried to enter the Central Expressway and caused a wreck.He had automobile insurance with limits of 30/50/15.What is the maximum this insurance policy would pay for the total of bodily injury liability claims in the accident? $30,000

(Multiple Choice)
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An insurance policy is a contract between the person buying insurance and the insurance company.

(True/False)
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People who are uncomfortable with risk and who avoid it whenever they can are using the approach of​

(Multiple Choice)
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The principle of indemnity is very difficult to apply to ____ insurance.

(Multiple Choice)
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Most of the HO forms of homeowner's insurance policies provide all-risk protection on the house and named-peril protection on the personal property.

(True/False)
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____ insurance is required in most states.

(Multiple Choice)
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Melvin has an auto insurance policy that includes both collision and comprehensive coverage.He has a $250 deductible on his collision coverage and a $100 deductible on his comprehensive coverage.His car has a book value of $7,500 when he is in a one-car accident with a tree.The car suffers damages of $5,000.How much will Melvin's insurance company pay for this repair work?​

(Multiple Choice)
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You should not keep the documentation for your personal property

(Multiple Choice)
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What is the first step in the risk-management process?​

(Multiple Choice)
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Personal injury protection pays the driver and passengers in the covered automobile without regard to fault.

(True/False)
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