Question 1

The terms "perils" and "losses" refer to the same thing.

Accepted Answer

A) True 
 B)False

Question 2

Premium discounts may result from

Accepted Answer

A)  safe driving record and prompt premium payment. 
B)  good grades and long-term employment. 
C)  multiple auto ownership and good credit rating. 
D)  safe driving record and good grades. 
E)  long-term employment and prompt payment of traffic tickets.

Question 3

After packing up to return home for the holidays after the fall semester,Tex stopped at Double T bookstore to sell textbooks.After collecting $25,he headed back to his pickup truck only to find a broken window,the truck broken into,and all his suitcases and personal property gone.The loss of his personal property and suitcases would be covered by

Accepted Answer

A)  umbrella liability insurance. 
B)  comprehensive (other than collision)auto coverage. 
C)  property damage liability auto coverage. 
D)  property damage to the property of others (homeowners' coverage). 
E)  personal property off premises (homeowners' coverage).

Question 4

A claims adjustor may work for

Accepted Answer

A)  the insurance company. 
B)  an independent adjustment bureau. 
C)  himself. 
D)  any of the above. 
E)  none of the above.

Question 5

If you have an outstanding loan on your car,the contract will require you to carry ____ insurance.

Accepted Answer

A)  bodily injury liability 
B)  property damage liability 
C)  medical payments 
D)  collision and comprehensive 
E)  all of these

Question 6

INSTRUCTIONS: Choose the word or phrase in [ ] which 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

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 7

The insurance company will provide defense for a covered person against both civil and criminal charges involving her motor vehicle.

Accepted Answer

A) True 
 B)False

Question 8

The deductible on a standard homeowners' policy applies to

Accepted Answer

A)  coverage on the house. 
B)  coverage on personal property. 
C)  liability coverage. 
D)  a and b 
E)  a,b,and c

Question 9

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-When considering your possible losses as a property owner,you would be more likely to suffer a very severe loss from [loss of property | liability claims].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 10

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 11

The advisable dollar limit for any one auto accident is $250,000.

Accepted Answer

A) True 
 B)False

Question 12

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-You use a small building on your property to manufacture Widgets.This building [will | will not] be covered by your standard HO policy.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 13

A peril is a cause of loss.

Accepted Answer

A) True 
 B)False

Question 14

Age of home affects insurance premiums the most.

Accepted Answer

A) True 
 B)False

Question 15

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 16

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Section II of a homeowner's insurance policy covers [dwelling | personal liability].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 17

Actual cash value is defined as replacement cost minus depreciation.

Accepted Answer

A) True 
 B)False

Question 18

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The theft of your favorite jacket from your locked car [would be | would not be] taken care of by your renter's policy.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 19

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Bill was the at-fault party when you and he collided.Your insurance company has paid for the damages to your car.Now,it intends to recover this money from Bill.This is the right of [subrogation | indemnification].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 20

Which of the following best describes the personal articles floater?

Accepted Answer

A)  an endorsement providing coverage for items of expensive personal property not adequately covered under the standard homeowners policy. 
B)  an addition to the automobile policy intended to cover items of personal property that are often in or upon a covered automobile. 
C)  a specialized inland marine policy covering boats and trailers used with boats. 
D)  a liability policy that covers against liability caused by ownership or use of items of personal property. 
E)  none of the above.

Exam 10: Protecting Your Property

The terms "perils" and "losses" refer to the same thing.

Premium discounts may result from

A claims adjustor may work for

If you have an outstanding loan on your car,the contract will require you to carry ____ insurance.

INSTRUCTIONS: Choose the word or phrase in [ ] which 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.

The insurance company will provide defense for a covered person against both civil and criminal charges involving her motor vehicle.

The deductible on a standard homeowners' policy applies to

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -When considering your possible losses as a property owner,you would be more likely to suffer a very severe loss from [loss of property | liability claims].

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

The advisable dollar limit for any one auto accident is $250,000.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -You use a small building on your property to manufacture Widgets.This building [will | will not] be covered by your standard HO policy.

A peril is a cause of loss.

Age of home affects insurance premiums the most.

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?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Section II of a homeowner's insurance policy covers [dwelling | personal liability].

Actual cash value is defined as replacement cost minus depreciation.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The theft of your favorite jacket from your locked car [would be | would not be] taken care of by your renter's policy.

Which of the following best describes the personal articles floater?