Question 1

It is difficult to compare auto insurance among provinces because of the differences in cost structures and benefit levels between tort-based and no-fault systems.

Accepted Answer

A) True 
 B)False

Question 2

The uncertainties of direct and indirect losses due to fire, wind, accident, theft, etc., are called ____________ risks.

Accepted Answer

A)  personal
B)  business
C)  property
D)  liability
E)  speculativeF) B) and C)
G) B) and E) C

Question 3

Vicarious liability refers to

Accepted Answer

A)  failure to take ordinary and reasonable care.
B)  when a person is held responsible for actions of another person.
C)  property damage.
D)  high risk insurance coverage.
E)  common hazards in our society.F) A) and E)
G) B) and D)

Question 4

Coverage for income replacement, medical, rehabilitation and attendant care expenses, and death and funeral costs for people who were injured in your automobile, including yourself are covered by what type of auto insurance?

Accepted Answer

A)  Bodily injury
B)  Accident Benefits
C)  Uninsured motorist's protection
D)  Property damage
E)  Comprehensive physical damageF) B) and D)
G) D) and E)

Question 5

Your geographic location is a major factor in determining the ____________ used to calculate your automobile insurance premiums.

Accepted Answer

A)  driver classification
B)  assigned risk pool
C)  coverage level
D)  legal responsibilities
E)  rating territoryF) None of the above
G) C) and E)

Question 6

Defective house wiring is an example of a

Accepted Answer

A)  hazard.
B)  peril.
C)  risk.
D)  speculation.
E)  negligence.F) A) and E)
G) B) and E)

Question 7

Replacement cost for settling property insurance claims is more costly than the actual cash value method.

Accepted Answer

A) True 
 B)False

Question 8

Property risks

Accepted Answer

A)  are the chance that something may be lost.
B)  are the cause of a possible loss.
C)  are legally defined as uninsurable.
D)  are the uncertainties of direct or indirect losses to property due to fire, windstorms, accidents, theft, and other hazards.
E)  are loss possibilities due to negligence resulting in bodily harm or property damage to others.F) B) and D)
G) B) and C)

Question 9

Which of the following is considered personal property for home insurance coverage?

Accepted Answer

A)  your automobile
B)  a fence
C)  a house
D)  furniture
E)  trees and shrubsF) All of the above
G) A) and E)

Question 10

Driver classification is a category based on the driver's age, gender, marital status, driving record, and driving habits

Accepted Answer

A) True 
 B)False

Question 11

What personal property is specifically excluded from coverage by a homeowner's insurance?

Accepted Answer

A)  Washers and dryers
B)  Stoves
C)  Any device or instrument for the transmission and recording of sound
D)  Inexpensive Electronics
E)  CarpetF) A) and B)
G) A) and C)

Question 12

What private sector strategy is used for illness?

Accepted Answer

A)  Health insurance
B)  Life insurance
C)  Pension
D)  Auto insurance
E)  Home owner insuranceF) B) and E)
G) A) and D)

Question 13

A speculative risk

Accepted Answer

A)  is the chance that something may be lost.
B)  is the cause of a possible loss.
C)  increases the likelihood of loss through some peril.
D)  is the uncertainty of direct or indirect loss to property due to fire, windstorms, accidents, theft and other hazards.
E)  is a risk that carries a chance of either loss or gain and are legally defined as uninsurable.F) All of the above
G) A) and D) E

Question 14

A home made of wood is more expensive to insure than a comparable brick structure.

Accepted Answer

A) True 
 B)False

Question 15

No-fault insurance systems have consistently reduced the time and costs involved in settling claims.

Accepted Answer

A) True 
 B)False  False

Question 16

________ is an automobile insurance program in which drivers involved in accidents collect medical expenses, lost wages, and related injury costs from their own insurance companies.

Accepted Answer

A)  Medical payments
B)  No-fault insurance
C)  Uninsured motorist's protection
D)  Bodily injury liability
E)  Comprehensive insuranceF) C) and D)
G) A) and E)

Question 17

Which of the following is considered personal property for home insurance coverage?

Accepted Answer

A)  an automobile
B)  a garage
C)  a house
D)  appliances
E)  trees and shrubsF) C) and E)
G) None of the above

Question 18

Personal belongings of a high value can be protected with a personal articles endorsement.

Accepted Answer

A) True 
 B)False

Question 19

If a homeowner leaves toys on stairs that result in injury to a delivery person, this may be ruled as

Accepted Answer

A)  vicarious liability.
B)  negligence.
C)  assigned risk.
D)  umbrella coverage.
E)  coinsurance.F) A) and B)
G) C) and E)

Question 20

Which of the following refers to a category based on your place of residence that is used to set automobile insurance premiums?

Accepted Answer

A)  rating territory
B)  assigned risk pool
C)  no-fault system
D)  driver classification
E)  use of the vehicleF) B) and C)
G) A) and E)

Exam 8: Home and Automobile Insurance

It is difficult to compare auto insurance among provinces because of the differences in cost structures and benefit levels between tort-based and no-fault systems.

Correct AnswerverifiedShow Answer

The uncertainties of direct and indirect losses due to fire, wind, accident, theft, etc., are called ____________ risks.

Correct AnswerverifiedC

Vicarious liability refers to

Correct AnswerverifiedShow Answer

Coverage for income replacement, medical, rehabilitation and attendant care expenses, and death and funeral costs for people who were injured in your automobile, including yourself are covered by what type of auto insurance?

Correct AnswerverifiedShow Answer

Your geographic location is a major factor in determining the ____________ used to calculate your automobile insurance premiums.

Correct AnswerverifiedShow Answer

Defective house wiring is an example of a

Correct AnswerverifiedShow Answer

Replacement cost for settling property insurance claims is more costly than the actual cash value method.

Correct AnswerverifiedShow Answer

Property risks

Correct AnswerverifiedShow Answer

Which of the following is considered personal property for home insurance coverage?

Correct AnswerverifiedShow Answer

Driver classification is a category based on the driver's age, gender, marital status, driving record, and driving habits

Correct AnswerverifiedShow Answer

What personal property is specifically excluded from coverage by a homeowner's insurance?

Correct AnswerverifiedShow Answer

What private sector strategy is used for illness?

Correct AnswerverifiedShow Answer

A speculative risk

Correct AnswerverifiedE

A home made of wood is more expensive to insure than a comparable brick structure.

Correct AnswerverifiedShow Answer

No-fault insurance systems have consistently reduced the time and costs involved in settling claims.

Correct AnswerverifiedFalse

________ is an automobile insurance program in which drivers involved in accidents collect medical expenses, lost wages, and related injury costs from their own insurance companies.

Correct AnswerverifiedShow Answer

Which of the following is considered personal property for home insurance coverage?

Correct AnswerverifiedShow Answer

Personal belongings of a high value can be protected with a personal articles endorsement.

Correct AnswerverifiedShow Answer

If a homeowner leaves toys on stairs that result in injury to a delivery person, this may be ruled as

Correct AnswerverifiedShow Answer

Which of the following refers to a category based on your place of residence that is used to set automobile insurance premiums?

Correct AnswerverifiedShow Answer

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C

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E

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False

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