Question 1

Combined single limit liability coverage allows for either separate coverage limits for bodily injury and property damage, split-coverage limits per person, or both.

Accepted Answer

A) True 
 B)False  False

Question 2

Give the three basic factors that determine the cost of your homeowner's insurance. List the possible ways of saving money on premiums.

Accepted Answer

The three basic factors are:(1) the location of your home, (2) its type of structure, and (3) your level of coverage and policy type.Possible ways of saving on premiums include:
-Take as high of a deductible as you can afford.
-Install a security system, smoke detectors, and fire extinguishers.
-Ask for a multiple policy discount with your car insurer-pay premiums annually.
-Ask for other discounts.
-Consider a direct writer.
-Shop around and get bids from several agents.
-Doublecheck your policy to make sure you have the coverage you need.

Question 3

Toldae and Natasha were driving their friends home when they rear-ended another car. They are worried about paying for the medical bills and possibly getting sued. Who will be covered under their Part B: Medical expense coverage?

Accepted Answer

A)   Toldae, Natasha, and the people in the car they hit
B)   Toldae, Natasha, and their friends
C)   their friends and the people in the other car
D)   the driver and their friends
E)   the driver and the people in the other car B

Question 4

In the event of a loss you should do all of the following except

Accepted Answer

A)   report your loss immediately.
B)   refrain from making any repairs until the claims adjuster has seen the damage.
C)   make a detailed list of everything that is lost or damaged.
D)   maintain records of the insurance settlement process.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

The recommended limit on both collision and comprehensive physical coverage damage is the cash value of your automobile.

Accepted Answer

A) True 
 B)False

Question 7

Your home and property have a market value of $200,000. Since you want to make sure that you meet the coinsurance provisions, you should have at least ________ of insurance.

Accepted Answer

A)   $160,000
B)   $180,000
C)   $200,000
D)   $220,000
E)   none of the above

Question 8

Comprehensive physical damage coverage would cover damage if your car were hit in a parking lot.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

What are the areas covered in Part A: Liability coverage in a personal automobile policy?

Accepted Answer

A)   bodily injury, property damage, judgments awarded, court costs, legal defense fees
B)   bodily injury, property damage, court costs, legal defense fees, bail bond
C)   bodily injury, property damage, legal defense fees, bail bond, loss of wages
D)   bodily injury, judgments awarded, court costs, loss of wages
E)   judgments awarded, property damage, court costs, legal defense fees, bail bond

Question 11

Amy Lambert's home is insured for $85,000 and her detached garage is destroyed by a windstorm. She hopes to collect $11,850 under her homeowner's policy. What will happen?

Accepted Answer

A)   Amy will receive $11,850 under Coverage B: Other structures
B)   Amy will receive $11,850 under Coverage A: Dwelling
C)   Amy will receive $8,850 under Coverage B: Other structures
D)   Amy will receive $8,850 under Coverage A: Dwelling
E)   Amy will receive $11,850 under Coverage C: Personal property

Question 12

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?

Accepted Answer

A)   Take a written and video tape inventory of his property.
B)   Add a personal articles floater to his policy.
C)   Take out personal property replacement cost coverage.
D)   Only B and C above
E)   A, B, and C above

Question 13

Brandi thought it quite funny to have a decorative outhouse put on her property as a conversation piece. This structure is covered under Coverage A: Dwelling on her home owners policy.

Accepted Answer

A) True 
 B)False

Question 14

You have liability only coverage on your car. It was damaged in the parking lot by a hit-and-run driver. What coverage do you have for your damages?

Accepted Answer

A)   Their collision coverage.
B)   Their liability coverage.
C)   Your liability coverage.
D)   None of the above.

Question 15

Your home and property have a market value of $240,000. To meet the coinsurance provision, you would need at least ________ of insurance.

Accepted Answer

A)   $144,000
B)   $168,000
C)   $192,000
D)   $216,000
E)   none of the above

Question 16

In addition to paying the policy limits for the damages you caused, the insurer also agrees under Part A to defend you in any civil cases arising from the accident and to pay all legal costs.

Accepted Answer

A) True 
 B)False

Question 17

Your apartment building burned down while you were on vacation. Fortunately, you have renter's insurance. What will your policy cover?

Accepted Answer

A)   Any damages to the building structure.
B)   Your neighbor's personal property.
C)   Your hotel and additional expenses based on a percentage of your property coverage.
D)   All of the above are correct.
E)   None of the above are correct.

Question 18

Your home was damaged by a hail storm. This will require a police report in order for you to file a claim.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Supplemental coverage for homeowner's insurance is available through endorsements. Which one of the following is not a common form of additional coverage?

Accepted Answer

A)   personal articles floaters
B)   earthquake coverage
C)   flood protection
D)   medical payments
E)   inflation guard

Exam 10: Property and Liability Insurance

Combined single limit liability coverage allows for either separate coverage limits for bodily injury and property damage, split-coverage limits per person, or both.

Give the three basic factors that determine the cost of your homeowner's insurance. List the possible ways of saving money on premiums.

Toldae and Natasha were driving their friends home when they rear-ended another car. They are worried about paying for the medical bills and possibly getting sued. Who will be covered under their Part B: Medical expense coverage?

In the event of a loss you should do all of the following except

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

The recommended limit on both collision and comprehensive physical coverage damage is the cash value of your automobile.

Your home and property have a market value of $200,000. Since you want to make sure that you meet the coinsurance provisions, you should have at least ________ of insurance.

Comprehensive physical damage coverage would cover damage if your car were hit in a parking lot.

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

What are the areas covered in Part A: Liability coverage in a personal automobile policy?

Amy Lambert's home is insured for $85,000 and her detached garage is destroyed by a windstorm. She hopes to collect $11,850 under her homeowner's policy. What will happen?

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?

Brandi thought it quite funny to have a decorative outhouse put on her property as a conversation piece. This structure is covered under Coverage A: Dwelling on her home owners policy.

You have liability only coverage on your car. It was damaged in the parking lot by a hit-and-run driver. What coverage do you have for your damages?

Your home and property have a market value of $240,000. To meet the coinsurance provision, you would need at least ________ of insurance.

In addition to paying the policy limits for the damages you caused, the insurer also agrees under Part A to defend you in any civil cases arising from the accident and to pay all legal costs.

Your apartment building burned down while you were on vacation. Fortunately, you have renter's insurance. What will your policy cover?

Your home was damaged by a hail storm. This will require a police report in order for you to file a claim.

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

Supplemental coverage for homeowner's insurance is available through endorsements. Which one of the following is not a common form of additional coverage?