Question 1

Uninsured motorist protection usually provides protection to your car if a hit-and-run incident occurs.

Accepted Answer

A) True 
 B)False

Question 2

The condo owner would choose a ____ policy.

Accepted Answer

A)  HO-2 
B)  HO-3 
C)  HO-4 
D)  HO-6 
E)  HO-8

Question 3

An inflation rider is a recommended addition to a homeowners' policy.

Accepted Answer

A) True 
 B)False

Question 4

Covered liability perils do not include claims for libel,slander,or character defamation.

Accepted Answer

A) True 
 B)False

Question 5

INSTRUCTIONS: 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.
-George and Nancy have actual cash value (ACV)coverage on their personal property.When a 5-year old TV is stolen,they learn its replacement value is $1,500 and the expected life of such a TV is 7 years.How much will their insurance company pay for the TV?

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 6

An automobile covered under a policy with a $500 collision deductible is damaged in a collision with a fence.It could be repaired for $15,000,replacement cost is $25,000,and the depreciation and physical condition deduction is $5,000.How much will the insurance company pay?

Accepted Answer

A)  $24,500 
B)  $7,500 
C)  $15,000 
D)  $14,500 
E)  Some other amount

Question 7

INSTRUCTIONS: 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.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 8

Replacement cost and actual cash value is the same thing.

Accepted Answer

A) True 
 B)False

Question 9

The asset most likely to be specifically itemized in a property insurance endorsement is

Accepted Answer

A)  sofa. 
B)  clothing. 
C)  jewelry. 
D)  garden equipment. 
E)  all of these.

Question 10

Carl and Alexandra purchased a $200,000 homeowners policy for their house in 1988.They have renewed the policy each year since and have replacement coverage.This policy has a $1,000 deductible.Their home now has a replacement value of $275,000.Last week they came home to find a small fire which caused the following damages:  Assume Carl and Alexandra have a standard HO-3 policy with personal property covered at 50% and landscaping covered for 10%.How much will the insurance pay for the losses of their personal property and landscaping?

Accepted Answer

A)  $15,000 
B)  $ 9,700 
C)  $24,545 
D)  $27,000 
E)  $30,000

Question 11

A personal liability umbrella policy typically includes coverage for auto related liability losses in excess of the limits purchased in a personal auto policy.

Accepted Answer

A) True 
 B)False

Question 12

INSTRUCTIONS: 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.
-[Comprehensive | Named Peril] policy covers all perils unless they are specifically excluded.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 13

Which of the following events would probably increase your auto premiums?

Accepted Answer

A)  Your 25th birthday 
B)  You get married 
C)  Trading in your 1999 Mercedes for a 2000 Ford Escort 
D)  Increasing your collision deductible 
E)  None of the above would increase your premium

Question 14

To save premium costs,one should decrease her deductible and liability coverage on a homeowners' policy.

Accepted Answer

A) True 
 B)False

Question 15

INSTRUCTIONS: 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.
-Decreasing the amount of deductibles will [increase | decrease] your insurance premiums.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 16

INSTRUCTIONS: 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.
-George and Nancy had a $30,000 repair bill on their home after the tornado went through town.Their policy contained the usual 80% co-insurance clause.Their home's replacement value was $150,000;their policy coverage was $110,000 with a $250 deductible.
a.
How much insurance should they have carried to meet the coinsurance obligation?
b.
What percentage of this loss will the insurance company pay?
c.
How much of the loss will George and Nancy have to absorb? (Show all work. )

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 17

A standard HO policy covers damage from most weather-related perils except

Accepted Answer

A)  snow and freezing. 
B)  windstorms and earthquakes. 
C)  earthquakes and floods. 
D)  floods and volcanic eruption. 
E)  Freezing and volcanic eruption.

Question 18

The no-fault automobile insurance movement has had a major effect on auto insurance premiums.

Accepted Answer

A) True 
 B)False

Question 19

The form of homeowner's insurance that is incorrectly paired with the insured is

Accepted Answer

A)  HO-1,renter. 
B)  HO-2,homeowner. 
C)  HO-4,renter. 
D)  HO-8,homeowner. 
E)  HO-6,condominium owner.

Question 20

War,nuclear radiation and mysterious disappearances are but a few limitations and/or exclusions in insurance policies.

Accepted Answer

A) True 
 B)False

Exam 10: Protecting Your Property

Uninsured motorist protection usually provides protection to your car if a hit-and-run incident occurs.

The condo owner would choose a ____ policy.

An inflation rider is a recommended addition to a homeowners' policy.

Covered liability perils do not include claims for libel,slander,or character defamation.

An automobile covered under a policy with a $500 collision deductible is damaged in a collision with a fence.It could be repaired for $15,000,replacement cost is $25,000,and the depreciation and physical condition deduction is $5,000.How much will the insurance company pay?

Replacement cost and actual cash value is the same thing.

The asset most likely to be specifically itemized in a property insurance endorsement is

A personal liability umbrella policy typically includes coverage for auto related liability losses in excess of the limits purchased in a personal auto policy.

INSTRUCTIONS: 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. -[Comprehensive | Named Peril] policy covers all perils unless they are specifically excluded.

Which of the following events would probably increase your auto premiums?

To save premium costs,one should decrease her deductible and liability coverage on a homeowners' policy.

INSTRUCTIONS: 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. -Decreasing the amount of deductibles will [increase | decrease] your insurance premiums.

A standard HO policy covers damage from most weather-related perils except

The no-fault automobile insurance movement has had a major effect on auto insurance premiums.

The form of homeowner's insurance that is incorrectly paired with the insured is

War,nuclear radiation and mysterious disappearances are but a few limitations and/or exclusions in insurance policies.