Question 1

Another term for liability coverage that protects you from claims if a client holds you responsible for errors or you fail to perform as promised is:

Accepted Answer

Liability coverage that protects you from claims if a client holds you responsible for errors or you fail to perform as promised is commonly known as errors and omissions (E&O) insurance. It is also referred to as professional liability insurance.

Question 2

Fewer than what percent of people who live in flood-prone areas have flood insurance?

Accepted Answer

The answer of Fewer than what percent of people who...

Question 3

The 500 in 200/500/50 refers to:

Accepted Answer

The 500 in 200/500/50 refers to the limit for all bodily injury claims from a single accident. The first number (200) is the limit per person for bodily injury liability coverage, the second number (500) is the limit for all bodily injury claims from a single accident, and the third number (50) is the limit for property damage liability coverage.

Question 4

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

Comprehensive physical damage coverage is the part of automobile insurance that covers vandalism and other non-collision-related damage to a vehicle. The other choices listed do not apply to damage caused by vandalism.

Question 5

Your home insurance policy has a $500 deductible.If a windstorm causes $2,000 damage to your home,what amount of the claim would the insurance company pay?

Accepted Answer

$2,000 F1F1F1S1F1F1F10 $500 = $1,500.

Question 6

Personal risks are the uncertainties surrounding the loss of income or life due to all except:

Accepted Answer

Professional misconduct refers to unethical or illegal behavior in a profession, while personal risks are related to loss of income or life due to factors such as premature death, illness, disability, or unemployment. Therefore, professional misconduct is not a personal risk.

Question 7

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

Accepted Answer

Personal risks, property risks, and liability risks are examples of pure risk because they involve the possibility of loss or no loss, but no gain. Speculative risk involves the possibility of loss, no loss, or gain, while avoided risk refers to a conscious decision to avoid a risk altogether. Assumed risk is a situation where one voluntarily takes on a risk, and reduced risk involves taking actions to lower the probability or severity of a loss.

Question 8

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

Accepted Answer

A tool shed is typically considered a structure and not personal property, whereas the other items are personal belongings.

Question 9

Self-insurance is part of:

Accepted Answer

Self-insurance involves assuming the risk of a potential loss and setting aside funds to cover that loss instead of purchasing insurance from an insurer. This falls under the category of risk assumption.

Question 10

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

Accepted Answer

Kathy Smith's location (Guthrie, Oklahoma) is the rating territory that can affect insurance rates. Insurance companies use rating territories to evaluate the likelihood of losses based on geographic location.

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

The coverage designed to pay for legal action taken against a homeowner who may be legally responsible for injury or property damage of others is Liability coverage.

Question 12

Approximately what percent of people who rent have purchased renter's insurance?

Accepted Answer

4 out of 10 = 4 / 10 = 40%.

Question 13

What type of personal liability coverage is also called a personal catastrophe policy?

Accepted Answer

An umbrella policy, also called a personal catastrophe policy, provides additional liability coverage above and beyond the limits of a primary policy, such as a homeowner's or auto insurance policy. It can help protect an individual's assets in the event they are involved in a major lawsuit or liability claim.

Question 14

Property owners face potential property losses due to two risks,physical damage and:

Accepted Answer

The answer of Property owners face potential property losses due...

Question 15

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

Vicarious liability holds a parent or guardian responsible for the actions of their child or ward. This is because the child is still considered under the legal control and responsibility of the parent or guardian. It is often applied in cases where the child causes harm through negligence or intentional actions. Negligence refers to a failure to exercise reasonable care and can also be a factor in vicarious liability cases. Strict liability is typically used in cases involving product liability or hazardous activities where the defendant is held liable regardless of fault. Umbrella coverage and self-insurance refer to insurance options that provide added protection beyond regular insurance policies.

Question 16

_________ coverage protects your automobile from risks such as glass breakage,falling objects,vandalism,or damage caused by hitting an animal.

Accepted Answer

Comprehensive physical damage coverage is designed to protect your vehicle from a wide range of risks beyond just accidents, including glass breakage, falling objects, vandalism, or damage caused by hitting an animal. It is a type of coverage that offers more complete protection than collision coverage alone.

Question 17

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

Accepted Answer

It is never advisable to admit liability at the scene of an accident, as fault determination can be a complex legal matter that often requires investigation and evidence. It is best to provide factual information to authorities and insurance companies, and to avoid making any statements that could be construed as an admission of fault.

Question 18

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

Accepted Answer

The house and other structures are considered real property, not personal property, under a typical homeowner's insurance policy. Personal property includes items such as furniture, firearms, jewelry, and a silverware set.

Question 19

Which one of the following would be an example of the driver classification category that helps determine insurance rates?

Accepted Answer

Charlie Purciful's age is a demographic factor that is used to determine insurance rates, as younger drivers tend to have higher rates due to their lack of experience and higher likelihood of accidents. The other options listed do not provide any relevant information for driver classification.

Question 20

Which of the following might qualify Amy Farmer for a premium discount on her automobile insurance?

Accepted Answer

Completing a driver's training program, earning good grades, installing an alarm system, and participating in a carpool can all potentially qualify for discounts on auto insurance, depending on the insurer's policies.

Quiz 10: Property and Motor Vehicle Insurance