Exam 10: Protecting Your Property

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -If your furniture in your rented apartment is destroyed by a fire,it [would | would not] be covered by your landlord's policy.

Section I of a homeowner's insurance policy covers medical payments.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The professional designation you want your property insurance agent to have is the [ACLU | CPCU].

A house with a replacement value of $110,000 is currently insured for $90,000.The house has suffered a $15,000 loss from windstorm damage.The insurance company will pay the full $15,000 less the deductible.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The insurance company [will | will not] provide liability coverage if your dog bites the neighbor.

Limits are normally specified in the homeowners' insurance contract for some categories of personal property.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -If you are sued,the liability portion of your property insurance [covers | does not cover] your defense.

When you charge your car rental to your credit card,collision insurance may be offered under the umbrella of the credit card..

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -You own your house.The amount of HO insurance coverage you will have on your furniture will be dependent upon [the replacement value of your house | the amount of insurance on your home].

Actual cash value provides coverage at the current market value of your property.

State financial responsibility laws require only auto liability insurance.

A liability suit could result when

The basic principles of property and liability insurance pertain to:

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Actual cash value is calculated by subtracting depreciation from the [purchase price | replacement cost] of an item.

Lenders typically require collision coverage on cars they finance.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Most insurance companies [will | will not] offer good student discounts on car insurance premiums.

Donna,who is single and 30 years old,has received several speeding tickets recently and was shocked by the effect on her auto insurance.Donna drives a 2004 Pontiac Firebird,is currently not covered by health insurance,has an emergency fund of $25,000,an income of $100,000 per year,and an investment portfolio of $230,000.She is trying to reduce the price of her auto insurance.Which of the following actions is most likely to be advisable?

Some common liability risks include:

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The personal property of your [boarder | visiting mother-in-law] would be covered by your HO policy.

Negligence results when a person