Question 1

Section I of a homeowner's insurance policy covers:

Accepted Answer

A)   the cost of defending the insured.
B)   the reasonable expenses incurred by an insured in helping the insurance company's defense.
C)   hospitalization costs provided to the insured.
D)   the dwelling, accompanying structures, and personal property of the insured.
E)   the liability for negligence of the insured.

Question 2

At the scene of an accident, the police are only responsible for assessing the:

Accepted Answer

A)   amount of loss.
B)   amount of the claim.
C)   liability of the insurance company.
D)   probability of a law violation.
E)   extent of any injuries.

Question 3

The first step when buying property and liability insurance is to develop a(n) :

Accepted Answer

A)   list of insurance agents offering insurance.
B)   inventory of exposures to loss.
C)   statement of premiums of five different insurance companies.
D)   list of floater policies.
E)   replacement cost for your property.

Question 4

A $100,000/$300,000 bodily injury liability automobile policy could pay up to $100,000 to one person or up to $300,000 to all injured victims in an accident.

Accepted Answer

A) True 
 B)False

Question 5

INSTRUCTIONS: Choose the word or phrase in [ ] that will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. 
The professional designation you want your property insurance agent to have is the [ ACLU | CPCU ].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 6

INSTRUCTIONS: Choose the word or phrase in [ ] that will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. 
Uninsured motorist insurance is relatively [ expensive | inexpensive ].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 7

Which of the following statements regarding medical payments coverage in a personal automobile policy (PAP)  is true?

Accepted Answer

A)   Medical payments coverage insures a covered individual for medical expenses incurred within 5 years of an automobile accident in an amount not to exceed the policy limit.
B)   A person must be occupying an automobile when the accidental injury occurs to be eligible for benefits.
C)   Medical payments coverage provides for reimbursement even if other sources of recovery, such as health insurance or accident insurance, also makes payments.
D)   In all states, medical payments are subject to subrogation, which means the insurer is entitled to recover any duplicate payments made to the insured.
E)   Injuries sustained on a bicycle or motorcycle in a traffic accident are covered.

Question 8

Which of the following homeowner's policies provides coverage for damage caused by electrical current?

Accepted Answer

A)   HO-7
B)   HO-2
C)   HO-8
D)   HO-9
E)   HO-1

Question 9

INSTRUCTIONS: Choose the word or phrase in [ ] that will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. 
Allstate and Nationwide are major insurance companies that market their products through [ captive | independent ] agents.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 10

Part A liability coverage under a personal automobile policy may be viewed as "following" the _____ first.

Accepted Answer

A)   insured
B)   family members of the insured
C)   holder of an auto loan
D)   vehicle
E)   insurer

Question 11

INSTRUCTIONS: Choose the word or phrase in [ ] that will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. 
Buying collision and comprehensive auto insurance from the dealer selling you the car is considered to be a [ good | bad ] idea.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 12

Which of the following statements regarding factors that influence how auto insurance premiums are set is true?

Accepted Answer

A)   Insurance companies charge lower rates for rear-engine models.
B)   Rates are lower if the insured automobile is driven less than 20 miles one way to work.
C)   In most states, accidents determined to be the insured's fault incur points and a premium surcharge.
D)   Discounts are often given for a vehicle that is driven less than 100,000 miles a year.
E)   Because they are involved in a larger percentage of fatal crashes, unmarried females under age 30 pay higher premiums than do older individuals.

Question 13

INSTRUCTIONS: Choose the word or phrase in [ ] that will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. 
[ Comprehensive | Named peril ] policies cover all perils unless they are specifically excluded.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 14

The premiums for homeowner's insurance policies are affected by the type of structure and its location.

Accepted Answer

A) True 
 B)False

Question 15

To purchase a personal liability umbrella policy, the insured party must already have:

Accepted Answer

A)   federally subsidized flood insurance coverage.
B)   relatively high liability limits on their homeowner's and auto coverage.
C)   high levels of personal debt.
D)   made several claims with the insurance company.
E)   a poor driving record.

Exam 10: Protecting Your Property

At the scene of an accident, the police are only responsible for assessing the:

Correct Answer
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INSTRUCTIONS: Choose the word or phrase in [ ] that will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. Uninsured motorist insurance is relatively [ expensive | inexpensive ].

Correct Answer
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The first step when buying property and liability insurance is to develop a(n) :

Correct Answer
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Correct Answer
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To purchase a personal liability umbrella policy, the insured party must already have:

Correct Answer
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The premiums for homeowner's insurance policies are affected by the type of structure and its location.

Correct Answer
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Section I of a homeowner's insurance policy covers:

Correct Answer
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INSTRUCTIONS: Choose the word or phrase in [ ] that will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. [ Comprehensive | Named peril ] policies cover all perils unless they are specifically excluded.

Correct Answer
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Which of the following statements regarding factors that influence how auto insurance premiums are set is true?

Correct Answer
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Part A liability coverage under a personal automobile policy may be viewed as "following" the _____ first.

Correct Answer
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A $100,000/$300,000 bodily injury liability automobile policy could pay up to $100,000 to one person or up to $300,000 to all injured victims in an accident.

Correct Answer
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Which of the following statements regarding medical payments coverage in a personal automobile policy (PAP) is true?

Correct Answer
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Which of the following homeowner's policies provides coverage for damage caused by electrical current?

Correct Answer
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Exam 10: Protecting Your Property

At the scene of an accident, the police are only responsible for assessing the:

Correct AnswerverifiedShow Answer

INSTRUCTIONS: Choose the word or phrase in [ ] that will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. Uninsured motorist insurance is relatively [ expensive | inexpensive ].

Correct AnswerverifiedShow Answer

The first step when buying property and liability insurance is to develop a(n) :

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

To purchase a personal liability umbrella policy, the insured party must already have:

Correct AnswerverifiedShow Answer

The premiums for homeowner's insurance policies are affected by the type of structure and its location.

Correct AnswerverifiedShow Answer

Section I of a homeowner's insurance policy covers:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements regarding factors that influence how auto insurance premiums are set is true?

Correct AnswerverifiedShow Answer

Part A liability coverage under a personal automobile policy may be viewed as "following" the _____ first.

Correct AnswerverifiedShow Answer

A $100,000/$300,000 bodily injury liability automobile policy could pay up to $100,000 to one person or up to $300,000 to all injured victims in an accident.

Correct AnswerverifiedShow Answer

Which of the following statements regarding medical payments coverage in a personal automobile policy (PAP) is true?

Correct AnswerverifiedShow Answer

Which of the following homeowner's policies provides coverage for damage caused by electrical current?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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