Question 1

Negligence refers to:

Accepted Answer

A) failure to take ordinary and reasonable care. 
B) cancellation of insurance. 
C) property damage. 
D) high risk insurance coverage. 
E) common hazards in our society.

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

Question 3

Property damage liability coverage would pay for damage to another vehicle for which you were at fault.

Accepted Answer

A) True 
 B)False

Question 4

The driver classification category is based on automobile style,model,and value of the vehicle.

Accepted Answer

A) True 
 B)False

Question 5

Georgia Owen was in an accident in which her car was totaled.What part of Georgia's automobile insurance would cover the damage to her car?

Accepted Answer

A) bodily injury liability 
B) medical payments coverage 
C) property damage liability 
D) collision 
E) comprehensive physical damage

Question 6

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.

Question 7

____________ protects you against financial loss when your car damages the property of others.

Accepted Answer

A) Collision 
B) Comprehensive physical damage 
C) Property damage liability 
D) No-fault insurance 
E) Assigned risk coverage

Question 8

Kelly and Bob Walton recently purchased a new home and desire coverage for all causes of loss or damage except those specially excluded by the policy.They should obtain the ____________ form of homeowner's policy.

Accepted Answer

A) basic 
B) broad 
C) special 
D) modified coverage 
E) condominium

Question 9

Starting a small business that may or may not succeed is an example of ___________ risk.

Accepted Answer

A) speculative 
B) pure 
C) commercial 
D) personal 
E) liability

Question 10

The legal responsibility for the financial cost of another person's losses or injuries is referred to as:

Accepted Answer

A) theft. 
B) robbery. 
C) liability. 
D) assigned risk. 
E) collusion.

Question 11

The purpose of a household inventory is to:

Accepted Answer

A) reduce insurance costs. 
B) document owned property. 
C) obtain personal property floater coverage. 
D) increase liability coverage. 
E) lower the chance of negligencE.

Question 12

Albert Finney owns a home in Pompano Beach,Florida.His house is broken into and the burglar steals his computer,his big screen TV,his stereo equipment,and his toaster.What part of his homeowner's insurance would cover this loss?

Accepted Answer

A) buildings and other structures 
B) additional living expenses 
C) personal property 
D) personal liability 
E) specialized coverage

Question 13

Kyle Burroughs left his car parked on the street all night.When he came out in the morning all four of his tires had been slashed by vandals.What part of Kyle's automobile insurance would cover this damage?

Accepted Answer

A) bodily injury liability 
B) medical payments coverage 
C) property damage liability 
D) collision 
E) comprehensive physical damage

Question 14

Henry Edwards was injured in an accident caused by another driver who did not have insurance.Henry's medical expenses would be covered by:

Accepted Answer

A) medical payments. 
B) collision. 
C) bodily injury liability. 
D) uninsured motorists protection. 
E) no-fault coveragE.

Question 15

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 16

George and ref CONTACT _Con-3CF96F2769 \c \s \l Dr.Martha Cooper rent a condominium in an area known for litigious residents and high cost judgments.George has an extensive stamp collection and Martha has expensive photographic equipment.What kind of insurance would you recommend for a couple in their living situation?

Accepted Answer

The answer of George and ref CONTACT _Con-3CF96F2769 \c \s...

Question 17

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 18

The ____________ coverage of a home insurance policy would cover accidental damage to another person's property by a member of your family.

Accepted Answer

A) supplementary 
B) personal property 
C) medical payments 
D) additional living expenses 
E) voluntary liability

Question 19

Risk management is an organized strategy for protecting and conserving assets and people.

Accepted Answer

A) True 
 B)False

Question 20

The comprehensive form of homeowner's insurance includes coverage for damage due to floods.

Accepted Answer

A) True 
 B)False

Exam 10: Property and Motor Vehicle Insurance

Negligence refers to:

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?

Property damage liability coverage would pay for damage to another vehicle for which you were at fault.

The driver classification category is based on automobile style,model,and value of the vehicle.

Georgia Owen was in an accident in which her car was totaled.What part of Georgia's automobile insurance would cover the damage to her car?

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:

____________ protects you against financial loss when your car damages the property of others.

Kelly and Bob Walton recently purchased a new home and desire coverage for all causes of loss or damage except those specially excluded by the policy.They should obtain the ____________ form of homeowner's policy.

Starting a small business that may or may not succeed is an example of ___________ risk.

The legal responsibility for the financial cost of another person's losses or injuries is referred to as:

The purpose of a household inventory is to:

Albert Finney owns a home in Pompano Beach,Florida.His house is broken into and the burglar steals his computer,his big screen TV,his stereo equipment,and his toaster.What part of his homeowner's insurance would cover this loss?

Kyle Burroughs left his car parked on the street all night.When he came out in the morning all four of his tires had been slashed by vandals.What part of Kyle's automobile insurance would cover this damage?

Henry Edwards was injured in an accident caused by another driver who did not have insurance.Henry's medical expenses would be covered by:

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

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

The ____________ coverage of a home insurance policy would cover accidental damage to another person's property by a member of your family.

Risk management is an organized strategy for protecting and conserving assets and people.

The comprehensive form of homeowner's insurance includes coverage for damage due to floods.