Exam 10: Managing Property and Liability Risk

____ policies provide open-peril protection for the dwellings covered under the policy.

The process of collecting on your property losses begins with ____ and ends with your ____.

If your windshield is broken by a rock as you drive down the road,the damages would be covered by your ____ coverage.

Driving under the influence of alcohol is an example of a hazard.

Owning a big-screen TV is called a(n)____,while the potential theft of that TV is called a(n)____.

The homeowner's policy most suitable for renters is the

Fire,theft,illness,and accidents are all examples of

When trying to save money on automobile insurance it is better to select a higher deductible than to lower your liability coverage limits.

As reported in the newspaper,an insurance company paid a claim for a dent on a car roof after a man barbecuing steaks accidently dropped one over his balcony and watched it fall 17 floors onto the car.Assuming the car belonged to someone other than the chef,which of the chef's insurance coverages would have covered the dented roof?

One should assume risks that are affordable and insure against losses that would be unaffordable.

Misty and her passenger,Angela,were involved in a one-car accident for which Misty was not at fault.Misty suffered bodily injuries of $5,500,while Angela's bodily injuries were $35,000.If Misty's auto insurance policy includes 20/40/15 bodily injury liability and $10,000 medical payments insurance,how much will the insurance policy pay for Misty and Angela's injuries?

Your collision coverage generally protects you when you drive

Assume you own a refrigerator that was purchased new seven years ago for $900,would cost $1200 today,and that it was expected to last ten years when purchased.Similar used refrigerators sell for about $300.What is its actual cash value?

Risk reduction generally includes the use of insurance.

One is more likely to need to raise the standard 50 percent limit on personal property coverage when he or she selects contents replacement-cost protection rather than actual-cash-value protection.

The person buying the insurance contract is called the insurer.

Good documentation is important when seeking reimbursement through insurance.

When reviewing an insurance policy,which is not considered a key policy provision?

Both collision and comprehensive coverage are usually written with deductibles.

____ are specifically designed for situations where more than one person is likely to be driving the car being insured.