Question 1

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)  speculative C

Question 2

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. E

Question 3

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

Accepted Answer

A) True 
 B)False  False

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 damage

Question 5

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)  Carpet

Question 6

What private sector strategy is used for illness?

Accepted Answer

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

Question 7

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 vehicle

Question 8

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 9

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.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 territory

Question 14

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 15

Defective house wiring is an example of a

Accepted Answer

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

Question 16

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 shrubs

Question 17

________ 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 insurance

Question 18

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 shrubs

Question 19

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.

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 8: Home and Automobile Insurance

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

A speculative risk

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

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?

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

What private sector strategy is used for illness?

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

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.

Vicarious liability refers to

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

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

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

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

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

Defective house wiring is an example of a

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

________ 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.

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

Property risks

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