Exam 11: Auto and Homeowners Insurance

Having adequate amounts of auto and homeowner's insurance affects your financial plan by

Having liability coverage as part of auto and homeowner's policies helps protect your ________ in the event of an accident.

Which of the following may be a reason why an insurance company decides not to renew your policy?

Which risk management alternative is feasible when the likelihood of an event that could cause a financial loss is very low and the potential financial loss due to the event is small?

To cover valuable personal property not adequately covered by your homeowner's policy, you should take out a(n) ________ policy.

Independent insurance agents work for one particular company.

Some credit cards provide you with collision and comprehensive insurance benefits if you use that card to pay for car rentals.

Insurance agents who work for one particular company are called

Individuals who need additional protection often supplement their auto and homeowner's policy with a(n) ________ personal liability policy.

In general, which coverage provides higher total dollar coverage?

While renter's insurance does protect your property, it does not cover liability in the event that a friend or neighbor is injured while at your apartment.

Which of the following is not covered by renter's insurance?

The coverage that is designed to protect you if you cause an accident where the driver or passenger of the other car sustains injuries and sues you is called ________.

The decision to obtain insurance should be determined by weighing its costs and benefits.

Which of the following is not a service company that would rate the financial condition of insurance companies?

Underwriters for an insurance company do not

If you have good health insurance, you should probably not take out medical payments coverage on your automobile policy.

Your home insurance provides for replacement value for personal property losses. Your china hutch was vandalized and completely destroyed. Your hutch cost $400 four years ago, but a new one will cost you $600. How much will the insurance company pay?

The bodily injury liability coverage of your automobile policy will not pay for

All of the following may qualify an applicant for an auto insurance discount, except