Exam 10: Property and Liability Insurance

Eric and Lisa Lambert are purchasing a home for the first time.Their insurance company wants them to insure at least ________ of the home's full replacement cost.

In general,which of the following is true regarding the amount of liability insurance you should carry?

Rosanne was in a car crash a few years ago that left her with hearing loss.She has decided to sue the owner of the other automobile for the medical costs of recovering her hearing.How many years,from the date of the crash,does she have to file a claim for the expenses?

According to the Keown textbook,after a DUI conviction,how long will you increased rates continue?

Which of the following could increase the cost of your auto insurance?

Property insurance protects you from the financial risk associated with property losses.

For a minor traffic accident,it is not necessary to call the police if you plan on submitting a claim to your insurance company.

The purpose of a personal umbrella policy,as an addition to your homeowner's policy,is primarily to protect you from

You have the most popular house on the block for the neighborhood children to play at.You have a trampoline,tree fort and jungle gym.Your family also has two large German shepherd dogs.What should you consider given the described situation?

Two of the determinants of the cost of your automobile insurance are the use and type of your automobile.

Your boyfriend is living in an apartment complex that has had a recent rash of robberies.He has $5,000 worth of rare coins.What should he do to protect himself in case of a robbery?

If you wanted to obtain an endorsement that automatically updates the level of property coverage based on an index of replacement costs that continually updates the cost of building a home,you would ask for a(n)

A lower insurance credit score generally results in lower homeowner's insurance rates.

Describe each of the six HO packaged policies.Which one is the most common?

Since most homeowners' claims are for relatively small amounts,high deductibles will keep your insurance costs down.

While you were walking your dog,she bit a child.Medical treatment for the child would fall under Coverage C: Personal Property.

While transporting your TV to the repair shop,someone stole it from your car.Your TV is covered under your homeowner's coverage.

The greater your financial assets,the less automobile insurance coverage you should carry because you can afford the financial loss.

A teenage driver crashes her parents' minivan into an office building,causing $85,000 in damage to the building.The automobile liability insurance limits are 100/250/75.How will the damages be allocated between the driver and the insurance company?

An attached garage is covered under Coverage B: Other structures.