Question 1

Which one of the following factors is used to determine a person's driver classification?

Accepted Answer

A)   Age
B)   Type and age of vehicle
C)   Claims in your geographic area
D)   Insurance company claim processing costs
E)   State insurance premium regulationsF) C) and D)
G) A) and C)

Question 2

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 witnessesF) A) and B)
G) C) and D)

Question 3

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)   condominiumF) A) and B)
G) A) and C)

Question 4

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

Accepted Answer

Most home insurance policies include cov...

Question 5

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)   vicariousF) A) and B)
G) A) and C)

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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.F) B) and D)
G) B) and C)

Question 8

The purpose of insurance is to help protect you and your family against financial hardship due to hazard, accident, death, and similar risks.

Accepted Answer

A) True 
 B)False

Question 9

Your geographic location is a major factor in determining the ____________ used to calculate your automobile insurance premiums.

Accepted Answer

A)   driver classification
B)   assigned risk pool
C)   coverage level
D)   legal responsibilities
E)   rating territoryF) B) and C)
G) A) and C)

Question 10

Most home insurance policies provide coverage for:

Accepted Answer

A)   earthquake damage.
B)   flood damage.
C)   an umbrella liability.
D)   personal property floaters.
E)   medical payments.F) B) and D)
G) All of the above

Question 11

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.F) A) and E)
G) B) and D)

Question 12

Which one of the following refers to a category based on age, sex, marital status, and driving habits that is used to set automobile insurance premiums?

Accepted Answer

A)   Rating territory
B)   Assigned risk pool
C)   No-fault system
D)   Driver classification
E)   Rating tiersF) B) and E)
G) A) and B)

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The purpose of an assigned risk pool is to:

Accepted Answer

A)   provide insurance for poor drivers.
B)   reduce medical costs associated with auto accidents.
C)   take unsafe drivers off the road.
D)   reduce auto insurance premiums with state regulation.
E)   offer premium discounts to safe drivers.F) All of the above
G) None of the above

Question 15

Wearing a seat belt in an automobile to protect yourself against injury is an example of ____________ risk.

Accepted Answer

A)   reducing
B)   assuming
C)   pooling
D)   shifting
E)   avoidingF) A) and C)
G) A) and B)

Exam 10: Property and Motor Vehicle Insurance

Wearing a seat belt in an automobile to protect yourself against injury is an example of ____________ risk.

Correct Answer
verified

Your geographic location is a major factor in determining the ____________ used to calculate your automobile insurance premiums.

Correct Answer
verified

Negligence refers to:

Correct Answer
verified

Which one of the following refers to a category based on age, sex, marital status, and driving habits that is used to set automobile insurance premiums?

Correct Answer
verified

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.

Correct Answer
verified

Which one of the following factors is used to determine a person's driver classification?

Correct Answer
verified

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.

Correct Answer
verified

Which of the following is not something you should do when you are involved in an automobile accident?

Correct Answer
verified

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

Correct Answer
verified

Most home insurance policies provide coverage for:

Correct Answer
verified

The purpose of insurance is to help protect you and your family against financial hardship due to hazard, accident, death, and similar risks.

Correct Answer
verified

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

Correct Answer
verified

The purpose of a household inventory is to:

Correct Answer
verified

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

Correct Answer
verified
Most home insurance policies include cov...
View Answer

The purpose of an assigned risk pool is to:

Correct Answer
verified

Exam 10: Property and Motor Vehicle Insurance

Wearing a seat belt in an automobile to protect yourself against injury is an example of ____________ risk.

Correct AnswerverifiedShow Answer

Your geographic location is a major factor in determining the ____________ used to calculate your automobile insurance premiums.

Correct AnswerverifiedShow Answer

Negligence refers to:

Correct AnswerverifiedShow Answer

Which one of the following refers to a category based on age, sex, marital status, and driving habits that is used to set automobile insurance premiums?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Which one of the following factors is used to determine a person's driver classification?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Which of the following is not something you should do when you are involved in an automobile accident?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Most home insurance policies provide coverage for:

Correct AnswerverifiedShow Answer

The purpose of insurance is to help protect you and your family against financial hardship due to hazard, accident, death, and similar risks.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The purpose of a household inventory is to:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedMost home insurance policies include cov...View AnswerShow Answer

The purpose of an assigned risk pool is to:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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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
Most home insurance policies include cov...
View Answer

Correct Answer
verified