Question 1

What type of personal liability coverage is also called a personal catastrophe policy?

Accepted Answer

A)  Umbrella policy
B)  Personal property floater
C)  Coinsurance floater
D)  Assigned risk clause
E)  Medical payments coverageF) None of the above
G) A) and B)

Question 2

Which of the following would be covered by a home insurance policy?

Accepted Answer

A)  Hospital expenses for surgery
B)  Injury to animals, birds, or fish
C)  Accidental injury to a coworker on the job
D)  Damage to your roof from hail
E)  Theft of business supplies from your officeF) B) and E)
G) C) and E)

Question 3

The driver classification category is based on automobile style,model,and value of the vehicle.

Accepted Answer

A) True 
 B)False

Question 4

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) C) and D)
G) B) and E)

Question 5

____________ protects you against financial loss when your car damages other vehicles,street signs,or buildings.

Accepted Answer

A)  Collision
B)  Comprehensive physical damage
C)  Property damage liability
D)  No-fault insurance
E)  Assigned risk coverageF) B) and C)
G) C) and D)

Question 6

Property damage liability coverage would pay for damage to another vehicle for which you were at fault.

Accepted Answer

A) True 
 B)False

Question 7

Additional personal liability insurance beyond the basic coverage in a homeowner's policy is available with:

Accepted Answer

A)  an umbrella policy.
B)  a personal property floater.
C)  an endorsement.
D)  a coinsurance clause.
E)  medical payments coverageF) A) and E)
G) A) and B)

Question 8

Another term for liability coverage that protects you from claims if a client holds you responsible for errors or you fail to perform as promised is:

Accepted Answer

A)  umbrella policy.
B)  personal property floater.
C)  errors and omissions.
D)  endorsement.
E)  self-insurance.F) None of the above
G) All of the above

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not something you should do when you are involved in an automobile accident?

Accepted Answer

A)  Stop your vehicle
B)  Turn off the engine
C)  Seek medical assistance for anyone with injuries
D)  Discuss the accident with anyone around, making sure to admit liability if the accident was your fault
E)  Obtain names and contact information of others in the accident and witnessesF) A) and B)
G) A) and C)

Question 11

Which statement is not true about no-fault insurance systems?

Accepted Answer

A)  They are intended to reduce the time and cost associated with the settlement of automobile injury cases.
B)  The systems vary from state to state.
C)  Some states include property damage in the coverage.
D)  Some states set limits on medical expenses, lost wages, and other claim settlements.
E)  In recent years, all 50 states had some variation of the system.F) None of the above
G) A) and B)

Question 12

Eating a balanced diet and exercising is an example of risk _____.

Accepted Answer

A)  shifting
B)  acceptance
C)  reduction
D)  assumption
E)  avoidanceF) B) and C)
G) C) and D)

Question 13

Most home insurance policies provide coverage for minor accidental injuries on your property under:

Accepted Answer

A)  earthquake damage.
B)  flood damage.
C)  an umbrella liability.
D)  personal property floaters.
E)  medical payments coverage.F) All of the above
G) A) and C)

Question 14

Which of the following is an insurable risk?

Accepted Answer

A)  Purposeful injury to another
B)  Quitting your job because you dislike it
C)  Professional misconduct
D)  Starting a small business
E)  GamblingF) None of the above
G) A) and B)

Question 15

If a homeowner leaves toys on stairs that results 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) B) and D)
G) B) and C)

Question 16

Henry Edwards was injured in an accident caused by another driver who did not have insurance.Henry's medical expenses would be covered by:

Accepted Answer

A)  medical payments.
B)  collision.
C)  bodily injury liability.
D)  uninsured motorists protection.
E)  no-fault coverage.F) B) and C)
G) A) and C)

Question 17

Peter Jacobs has set aside $5,000 in case he has an accident in his 1999 Honda Civic.He does not have collision insurance on this car.How is Peter managing his risk?

Accepted Answer

A)  Avoidance
B)  Reduction
C)  Assumption
D)  Shifting
E)  CreationF) A) and B)
G) A) and C)

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

____________ provides coverage for the risk of financial loss due to legal expenses,medical expenses,lost wages,and other expenses associated with injuries caused by an automobile accident for which you were responsible.

Accepted Answer

A)  Medical payment
B)  Bodily injury liability
C)  Uninsured motorists protection
D)  No-fault insurance
E)  Comprehensive insuranceF) B) and E)
G) A) and B)

Question 20

Which of the following might qualify Amy Farmer for a premium discount on her automobile insurance?

Accepted Answer

A)  Completing a driver's training program
B)  Earning straight A's in college
C)  Installing an alarm system in her car
D)  Participating in a carpool five days a week
E)  Any of these might qualify Amy for a discount.F) B) and E)
G) A) and B)

Exam 10: Property and Motor Vehicle Insurance

Which of the following is not something you should do when you are involved in an automobile accident?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Another term for liability coverage that protects you from claims if a client holds you responsible for errors or you fail to perform as promised is:

Correct AnswerverifiedShow Answer

Additional personal liability insurance beyond the basic coverage in a homeowner's policy is available with:

Correct AnswerverifiedShow Answer

Eating a balanced diet and exercising is an example of risk _____.

Correct AnswerverifiedShow Answer

The driver classification category is based on automobile style,model,and value of the vehicle.

Correct AnswerverifiedShow Answer

Peter Jacobs has set aside $5,000 in case he has an accident in his 1999 Honda Civic.He does not have collision insurance on this car.How is Peter managing his risk?

Correct AnswerverifiedShow Answer

Henry Edwards was injured in an accident caused by another driver who did not have insurance.Henry's medical expenses would be covered by:

Correct AnswerverifiedShow Answer

Which of the following is an insurable risk?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Most home insurance policies provide coverage for minor accidental injuries on your property under:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

____________ provides coverage for the risk of financial loss due to legal expenses,medical expenses,lost wages,and other expenses associated with injuries caused by an automobile accident for which you were responsible.

Correct AnswerverifiedShow Answer

Which statement is not true about no-fault insurance systems?

Correct AnswerverifiedShow Answer

Property damage liability coverage would pay for damage to another vehicle for which you were at fault.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What type of personal liability coverage is also called a personal catastrophe policy?

Correct AnswerverifiedShow Answer

____________ protects you against financial loss when your car damages other vehicles,street signs,or buildings.

Correct AnswerverifiedShow Answer

Which of the following would be covered by a home insurance policy?

Correct AnswerverifiedShow Answer

Which of the following might qualify Amy Farmer for a premium discount on her automobile insurance?

Correct AnswerverifiedShow Answer

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