Question 1

Tara Guest owns a home in Edmond, Oklahoma. She is worried about a tornado causing damage to her home. The tornado is an example of a:

Accepted Answer

A)   peril.
B)   hazard.
C)   risk.
D)   premium.
E)   liability. A

Question 2

Robert Plant pays a premium each month to State Farm Insurance for automobile insurance on his 2003 Dodge Ram pick-up truck. How is Robert managing his risk?

Accepted Answer

A)   Avoidance
B)   Reduction
C)   Assumption
D)   Shifting
E)   Assessment D

Question 3

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

Accepted Answer

A)   Automobile
B)   Garage
C)   Furniture
D)   House
E)   Trees and shrubs C

Question 4

David Bowers must show a card from his automobile insurance company when he registers his car in the state of Oklahoma each year. Which of the following types of laws is the reason he must show this card each year?

Accepted Answer

A)   Financial responsibility laws
B)   Lemon laws
C)   Truth in Lending Law
D)   Equal Opportunity Law
E)   Fiscal responsibility laws

Question 5

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.

Question 6

The 100 in 100/300/50 refers to:

Accepted Answer

A)   property damage liability coverage.
B)   the amount of the deductible.
C)   collision coverage.
D)   the total coverage for an accident.
E)   the limit for bodily injury claims that can be paid to one person.

Question 7

Homeowner's insurance refers to coverage also available to condominium owners.

Accepted Answer

A) True 
 B)False

Question 8

Fewer than what percent of people who live in flood-prone areas have flood insurance?

Accepted Answer

A)   5
B)   15
C)   20
D)   30
E)   50

Question 9

High winds cause damage to trees, shrubs, and other plants. This insurance claim would be covered under the ____________ component of homeowner's insurance.

Accepted Answer

A)   additional living expenses
B)   personal property
C)   building and other structures
D)   personal liability
E)   property damage

Question 10

Which type of automobile insurance is usually considered to be most important?

Accepted Answer

The answer of Which type of automobile insurance is usually...

Question 11

An umbrella policy is designed to cover:

Accepted Answer

A)   expensive personal property.
B)   additional buildings on your property.
C)   property when traveling away from home.
D)   major personal liability suits.
E)   flood damage.

Question 12

Which one of the following would be an example of a rating territory that helps determine insurance rates?

Accepted Answer

A)   Paul Carter drives a 2002 Volkswagen Eurovan.
B)   Mary Williams is 73 years old.
C)   Kathy Smith lives in Guthrie, Oklahoma.
D)   Jeremy Davis is married.
E)   John Brown has had three speeding tickets in five years.

Question 13

A parent may be held responsible for the actions of their child if those actions cause financial or physical harm to others. This is known as:

Accepted Answer

A)   negligence.
B)   strict liability.
C)   vicarious liability.
D)   umbrella coverage.
E)   self insurance.

Question 14

____________ coverage would pay for damage to your vehicle caused by an accident when another driver with insurance was legally at fault.

Accepted Answer

A)   Property damage liability
B)   Collision
C)   Comprehensive physical damage
D)   Uninsured motorists protection
E)   Assigned risk

Question 15

Property losses can be categorized into destruction of property, and losses due to robbery, burglary, vandalism, or arson.

Accepted Answer

A) True 
 B)False

Question 16

____________ 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 payments
B)   Bodily injury liability
C)   Uninsured motorists protection
D)   No-fault insurance
E)   Comprehensive insurance

Question 17

A friend wants to understand what affects the cost of auto insurance. Explain the factors used to determine the automobile insurance premiums a person pays.

Accepted Answer

The answer of A friend wants to understand what affects...

Question 18

Which one of the following would be an example of the driver classification category that determines insurance rates?

Accepted Answer

A)   John Brown has a 2005 Mazda Miata Convertible.
B)   Harry Anderson lives in Boca Raton, Florida.
C)   Charlie Purciful is 22 years old.
D)   Charlotte Webb has her vehicle in a locked garage.
E)   Barry Evans has just moved to Raleigh, North Carolina.

Question 19

Ginger Simpson ran off the road and hit a bridge support. She was seriously injured and spent three days in the hospital. What part of Ginger's automobile insurance policy would cover Ginger's injuries?

Accepted Answer

A)   Bodily injury liability
B)   Medical payments coverage
C)   Property damage liability
D)   Collision
E)   Comprehensive physical damage

Question 20

Your home insurance policy has a $500 deductible. If a windstorm causes $2,000 damage to your home, what amount of the claim would the insurance company pay?

Accepted Answer

A)   $2,000
B)   $1,000
C)   $1,500
D)   $500
E)   $0$2,000 - $500 = $1,500

Exam 10: Property and Motor Vehicle Insurance