Question 1

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 2

Which of the following would not be considered personal property under a typical homeowner's insurance policy?

Accepted Answer

A) furniture 
B) clothing 
C) buildings and other structures 
D) jewelry 
E) a silverware set

Question 3

Your home insurance provides for replacement value for personal property losses.A microwave is stolen.It cost $300 two years ago and has an expected life of six years.A comparable microwave costs $400 today.What amount will the insurance company pay?

Accepted Answer

A) $100 
B) $150 
C) $200 
D) $350 
E) $400

Question 4

Thad Joslin was judged at fault in an automobile accident.Three others were awarded damages of $150,000,$75,000,and $75,000.Thad has 100/300 bodily injury liability coverage.What amount,if any,would not be covered by his insurance?

Accepted Answer

A) $150,000 
B) $100,000 
C) $50,000 
D) $25,000 
E) NonE.The total amount would be covered by insurancE.

Question 5

Kevin Brown rides his bicycle to work so that he doesn't have to worry about getting in a car accident.How is Kevin managing his risk?

Accepted Answer

A) avoidance 
B) reduction 
C) assumption 
D) shifting 
E) creation

Question 6

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 coverage

Question 7

Which one of the following types of coverage would pay for damage to your automobile in an accident for which you were at fault?

Accepted Answer

A) property damage liability 
B) collision 
C) comprehensive physical damage 
D) no-fault insurance 
E) assigned risk pool coverage

Question 8

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 9

Your home insurance policy has a $250 deductible.If a small fire causes $600 damage to your home,what amount of the claim would the insurance company pay?

Accepted Answer

A) $250 
B) $350 
C) $450 
D) $600 
E) not able to determine from this information

Question 10

Increased liability insurance is available with an umbrella policy.

Accepted Answer

A) True 
 B)False

Question 11

What type of coverage in a home insurance policy is designed to pay for legal action taken against a homeowner who may be legally responsible for injury or property damage of others?

Accepted Answer

A) medical payments 
B) liability 
C) floater 
D) comprehensive 
E) personal property

Question 12

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

Accepted Answer

A) medical expenses for injuries to visitors 
B) fire damage to the building's roof 
C) additional living expenses 
D) accidental damage to the property of others 
E) cost of legal action due to personal liability

Question 13

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 witnesses

Question 14

What coverages are commonly included in a homeowner's insurance policy?

Accepted Answer

The answer of What coverages are commonly included in a...

Question 15

Renter's insurance would include coverage for:

Accepted Answer

A) flood damage. 
B) personal property. 
C) building and other structures. 
D) umbrella liability. 
E) earthquake damagE.

Question 16

While cleaning your home,a worker damages some furniture.You take action against the worker's employer to cover the cost of the damage.This is an example of a(n)____________ liability.

Accepted Answer

A) umbrella 
B) assigned 
C) common situation 
D) peril 
E) vicarious

Question 17

Nick Rodr owns a home in Edmond,Oklahoma and pays $665 per year in insurance on the home.The $665 is an example of a:

Accepted Answer

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

Question 18

Using a home security system is an example of ____________ risk.

Accepted Answer

A) shifting 
B) accepting 
C) reducing 
D) sharing 
E) transferring

Question 19

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 20

Personal risks,property risks,and liability risks are types of ________ risk.

Accepted Answer

A) speculative 
B) avoided 
C) assumed 
D) pure 
E) reduced

Exam 10: Property and Motor Vehicle Insurance