Exam 10: Protecting Your Property

The Thomson's house burned to the ground.They felt they were adequately covered (see coverage below).Their car (market value $10,000)was in the garage and totally destroyed.How much will the Thompsons be reimbursed for their home?

To save premium costs,one should decrease one's deductible and liability coverage on a homeowners' policy.

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement. -Medical payments coverage [would | would not] pay for the medical bills of passengers in your car who are not related to you.

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement. -During your lifetime,you are more likely to be sued for negligence as a result of owning a [car | home].

Automobile liability claims could potentially be more costly to you than car damage claims.

After packing up to return home for the holidays after the fall semester,Peter 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 damages to his pickup would be covered by:

The best place to buy automobile insurance is:

The named insured and their passengers would be covered under automobile medical payments insurance.

The advisable dollar limit for any one auto accident is:

An HO-1 policy lists more perils for which you are insured than an HO-3 does.

Liability exposures may result from alleged negligent actions.

The personal liability umbrella policy typically includes coverage for liability losses that are in excess of the limits purchased in the comprehensive personal liability coverage provided in the homeowners' policy.

Replacement cost coverage is available for renters but requires an extra premium.

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement. -Your house has a replacement value of $120,000.Your homeowner's policy has an 80% co-insurance clause.In order to receive full compensation if your house is totally destroyed,you must carry insurance for [$96,000 | $120,000].

Section I of the homeowner's insurance policy covers:

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

Antiques,collections,and boats are adequately protected under a standard homeowner's policy.

Earthquakes are covered under most homeowner's policies.

Negligence results when a person:

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement. -You own a house.The amount of insurance coverage you will have on your furniture will be dependent upon [the replacement value of your house | the amount of insurance on your home].