Question 1

Francis was just learning to drive. She forgot to put the car into park and it rolled down the driveway and into the neighbor's automobile. What part of her automobile insurance policy will cover the damage to her neighbor's automobile?

Accepted Answer

A)   Part A: liability coverage
B)   Part B: medical expense coverage
C)   Part C: uninsured motorists coverage
D)   Part D: damage to your automobile coverageE) None of the above
F) A) and C)

Question 2

Which of the following is not a consideration in determining the amount of homeowner's insurance a person needs?

Accepted Answer

A)   Cover the entire replacement cost in the event of a complete loss.
B)   Match the insurance coverage of similar homes in your neighborhood.
C)   Protect against the effect of inflation eroding away your coverage.
D)   Purchase flood or earthquake coverage if you are in an area prone to these occurrences.
E)   Determine if detached structures are adequately covered under standard policies.F) B) and D)
G) C) and E)

Question 3

Your insurance credit score depends on, among other things, your payment history and the types of credit used.

Accepted Answer

A) True 
 B)False

Question 4

The replacement value of the house less accumulated depreciation (which is the decline in value over time due to wear and tear)  is known as ________.

Accepted Answer

A)   actual cash value
B)   replacement value
C)   market value
D)   depreciation
E)   none of the aboveF) A) and D)
G) D) and E)

Question 5

If you wanted to obtain an endorsement that automatically updates the level of property coverage based on an index of replacement costs that continually updates the cost of building a home, you would ask for a(n)

Accepted Answer

A)   inflation guard.
B)   automatic adjustment policy.
C)   replacement cost index.
D)   continual adjustment policy.
E)   none of the aboveF) B) and D)
G) A) and B)

Question 6

What type of auto insurance protects you in the case of accident regardless of who caused the accident?

Accepted Answer

A)   no-cause insurance
B)   no-fault insurance
C)   no-litigation insurance
D)   cause-free insurance
E)   none of the aboveF) A) and B)
G) A) and D)

Question 7

Which of the following are not discounts for PAP coverage?

Accepted Answer

A)   good student discount
B)   anti-theft equipment discount
C)   low miles per gallon discount
D)   accident free discount
E)   all of the above are discounts for PAP.F) A) and C)
G) C) and D)

Question 8

John Meadow rents an apartment and wants tenant's insurance or an ________ policy.

Accepted Answer

A)   HO-1
B)   HO-2
C)   HO-3
D)   HO-4
E)   HO-6F) C) and D)
G) B) and C)

Question 9

What should a 20-year-old man consider when he is thinking about purchasing a new car?

Accepted Answer

A)   The sportier the car he purchases is, the more his insurance will cost.
B)   Because of his demographics, he will pay higher rates for car insurance.
C)   The type of car he purchases could have a dramatic impact on the cost of his insurance.
D)   All of the above are correct.
E)   All but A are correct.F) C) and E)
G) B) and D)

Question 10

You have the most popular house on the block for the neighborhood children to play at. You have a trampoline, tree fort and jungle gym. Your family also has two large German shepherd dogs. What should you consider given the described situation?

Accepted Answer

A)   Purchasing personal property replacement cost coverage.
B)   Purchasing earthquake coverage.
C)   Purchasing an umbrella policy.
D)   None of the above.E) C) and D)
F) None of the above

Question 11

Which of the following are among the most common driver distractions that lead to insurance claims?

Accepted Answer

A)   talking on cell phones
B)   applying make-up or shaving
C)   reading something
D)   eating something
E)   all of the above are cited as the most common driver distractionsF) A) and B)
G) D) and E)

Question 12

Suppose Lisa and Eric do not purchase an adequate amount of insurance on their home. In the event of a claim, they would pay a portion of it. This is the

Accepted Answer

A)   inflation guard.
B)   added liability.
C)   replacement cost.
D)   coinsurance provision.
E)   70 percent rule.F) C) and D)
G) C) and E)

Question 13

What is it about liability coverage that makes it so important?

Accepted Answer

A)   There is no way to know in advance what your potential liability loss will be.
B)   Huge sums of money are handed out in settlements over lawsuits over auto accidents.
C)   This coverage will pay all legal costs should you be involved in a civil case arising from an accident.
D)   All of the above are correct.E) B) and D)
F) A) and D)

Question 14

For a minor traffic accident, it is not necessary to call the police if you plan on submitting a claim to your insurance company.

Accepted Answer

A) True 
 B)False

Question 15

Your written or video inventory of your assets should be kept in a safe place such as a lock box at your bank.

Accepted Answer

A) True 
 B)False

Question 16

On your home owners policy ________ protects any personal property that's owned or used by the policyholder, regardless of the location of this property. In other words, if you're on a vacation in Hawaii and someone hits you with a pineapple and steals your suitcase, your personal property is still covered.

Accepted Answer

A)   Coverage A
B)   Coverage B
C)   Coverage C
D)   Coverage D
E)   none of the aboveF) None of the above
G) A) and B)

Question 17

You had several of your son's friends over last night for a sleepover. While dropping off their child, one of the parents did not see your basketball hoop and smashed it beyond repair with her car. Where would you look for damage payment?

Accepted Answer

A)   the driver's homeowner's insurance
B)   section II of the driver's homeowner's insurance
C)   the driver's automobile liability coverage
D)   the driver's automobile comprehensive insurance
E)   the driver's automobile collision insuranceF) None of the above
G) C) and D)

Question 18

Your home is hit by a strong wind storm that causes serious damage to one end of it. The rest of your home is livable. What do you do?

Accepted Answer

Report your loss immediately.Next, make ...

Question 19

In your many travels, you have suddenly found yourself in an auto accident - the very first one where you are at fault. Both cars are blocking a bridge with heavy city traffic. What should you do?

Accepted Answer

A)   Stay at the scene of the accident - have someone call the police and get medical help.
B)   Move the cars to a safe place so no one else gets hit.
C)   Call a lawyer to meet you at the scene of the accident.
D)   Refrain from admitting guilt or signing anything.
E)   all of the above except CF) A) and B)
G) All of the above

Question 20

Charlie drives his own vehicle as a taxi on weekends in his home town. With his PAP coverage, his automobile is covered since he is carrying passengers for a fee.

Accepted Answer

A) True 
 B)False

Exam 10: Property and Liability Insurance

Your insurance credit score depends on, among other things, your payment history and the types of credit used.

Correct Answer
verified

Which of the following are not discounts for PAP coverage?

Correct Answer
verified

In your many travels, you have suddenly found yourself in an auto accident - the very first one where you are at fault. Both cars are blocking a bridge with heavy city traffic. What should you do?

Correct Answer
verified

Which of the following are among the most common driver distractions that lead to insurance claims?

Correct Answer
verified

You had several of your son's friends over last night for a sleepover. While dropping off their child, one of the parents did not see your basketball hoop and smashed it beyond repair with her car. Where would you look for damage payment?

Correct Answer
verified

Suppose Lisa and Eric do not purchase an adequate amount of insurance on their home. In the event of a claim, they would pay a portion of it. This is the

Correct Answer
verified

Your home is hit by a strong wind storm that causes serious damage to one end of it. The rest of your home is livable. What do you do?

Correct Answer
verified
Report your loss immediately.Next, make ...
View Answer

Francis was just learning to drive. She forgot to put the car into park and it rolled down the driveway and into the neighbor's automobile. What part of her automobile insurance policy will cover the damage to her neighbor's automobile?

Correct Answer
verified

What should a 20-year-old man consider when he is thinking about purchasing a new car?

Correct Answer
verified

Correct Answer
verified

John Meadow rents an apartment and wants tenant's insurance or an ________ policy.

Correct Answer
verified

For a minor traffic accident, it is not necessary to call the police if you plan on submitting a claim to your insurance company.

Correct Answer
verified

You have the most popular house on the block for the neighborhood children to play at. You have a trampoline, tree fort and jungle gym. Your family also has two large German shepherd dogs. What should you consider given the described situation?

Correct Answer
verified

Charlie drives his own vehicle as a taxi on weekends in his home town. With his PAP coverage, his automobile is covered since he is carrying passengers for a fee.

Correct Answer
verified

What type of auto insurance protects you in the case of accident regardless of who caused the accident?

Correct Answer
verified

The replacement value of the house less accumulated depreciation (which is the decline in value over time due to wear and tear) is known as ________.

Correct Answer
verified

If you wanted to obtain an endorsement that automatically updates the level of property coverage based on an index of replacement costs that continually updates the cost of building a home, you would ask for a(n)

Correct Answer
verified

Your written or video inventory of your assets should be kept in a safe place such as a lock box at your bank.

Correct Answer
verified

Which of the following is not a consideration in determining the amount of homeowner's insurance a person needs?

Correct Answer
verified

What is it about liability coverage that makes it so important?

Correct Answer
verified

Exam 10: Property and Liability Insurance

Your insurance credit score depends on, among other things, your payment history and the types of credit used.

Correct AnswerverifiedShow Answer

Which of the following are not discounts for PAP coverage?

Correct AnswerverifiedShow Answer

In your many travels, you have suddenly found yourself in an auto accident - the very first one where you are at fault. Both cars are blocking a bridge with heavy city traffic. What should you do?

Correct AnswerverifiedShow Answer

Which of the following are among the most common driver distractions that lead to insurance claims?

Correct AnswerverifiedShow Answer

You had several of your son's friends over last night for a sleepover. While dropping off their child, one of the parents did not see your basketball hoop and smashed it beyond repair with her car. Where would you look for damage payment?

Correct AnswerverifiedShow Answer

Suppose Lisa and Eric do not purchase an adequate amount of insurance on their home. In the event of a claim, they would pay a portion of it. This is the

Correct AnswerverifiedShow Answer

Your home is hit by a strong wind storm that causes serious damage to one end of it. The rest of your home is livable. What do you do?

Correct AnswerverifiedReport your loss immediately.Next, make ...View AnswerShow Answer

Francis was just learning to drive. She forgot to put the car into park and it rolled down the driveway and into the neighbor's automobile. What part of her automobile insurance policy will cover the damage to her neighbor's automobile?

Correct AnswerverifiedShow Answer

What should a 20-year-old man consider when he is thinking about purchasing a new car?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

John Meadow rents an apartment and wants tenant's insurance or an ________ policy.

Correct AnswerverifiedShow Answer

For a minor traffic accident, it is not necessary to call the police if you plan on submitting a claim to your insurance company.

Correct AnswerverifiedShow Answer

You have the most popular house on the block for the neighborhood children to play at. You have a trampoline, tree fort and jungle gym. Your family also has two large German shepherd dogs. What should you consider given the described situation?

Correct AnswerverifiedShow Answer

Charlie drives his own vehicle as a taxi on weekends in his home town. With his PAP coverage, his automobile is covered since he is carrying passengers for a fee.

Correct AnswerverifiedShow Answer

What type of auto insurance protects you in the case of accident regardless of who caused the accident?

Correct AnswerverifiedShow Answer

The replacement value of the house less accumulated depreciation (which is the decline in value over time due to wear and tear) is known as ________.

Correct AnswerverifiedShow Answer

If you wanted to obtain an endorsement that automatically updates the level of property coverage based on an index of replacement costs that continually updates the cost of building a home, you would ask for a(n)

Correct AnswerverifiedShow Answer

Your written or video inventory of your assets should be kept in a safe place such as a lock box at your bank.

Correct AnswerverifiedShow Answer

Which of the following is not a consideration in determining the amount of homeowner's insurance a person needs?

Correct AnswerverifiedShow Answer

What is it about liability coverage that makes it so important?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Report your loss immediately.Next, make ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified