Question 1

What personal property is specifically excluded from coverage by a homeowner's insurance?

Accepted Answer

Any device or instrument for the transmission and recording of sound, such as musical instruments, audio and video systems, and recording equipment, are typically excluded from coverage under a homeowner's insurance policy. This means that if these items are lost or damaged, they will not be covered by insurance.

Question 2

Which of the following refers to a category based on your place of residence that is used to set automobile insurance premiums?

Accepted Answer

Rating territory refers to the geographical location where a driver primarily lives and garages their car. Insurance companies use rating territories to calculate automobile insurance premiums since the frequency and severity of accidents in different areas can vary.

Question 3

What private sector strategy is used for death?

Accepted Answer

Life insurance is the private sector strategy used for death. It provides financial support to the beneficiaries of the policyholder in case of their death. Health insurance covers medical expenses, pension provides retirement benefits, auto insurance covers the cost of damages to the vehicle, and home owner insurance covers damages to the house or property.

Question 4

What private sector strategy is used for illness?

Accepted Answer

Health insurance is specifically designed to cover expenses related to illness and healthcare. While life insurance and pensions may provide financial support in the event of disability or death, they do not directly cover the cost of medical treatment. Auto and home insurance are designed to provide coverage for property damage and liability, and are not related to illness.

Question 5

What type of liability is present when a person is held responsible for intentional or unintentional actions?

Accepted Answer

Strict liability holds a person responsible for their actions regardless of intent or negligence.

Question 6

Auto insurance premiums are not affected by?

Accepted Answer

The color of the vehicle does not affect auto insurance premiums. Premiums are affected by factors such as the make and style of the car, use of the vehicle, driver classification, and provincial differences.

Question 7

What personal property is specifically excluded from coverage by a homeowner's insurance?

Accepted Answer

Animals are typically excluded from coverage under a standard homeowner's insurance policy. Coverage for pets may be available through a separate pet insurance policy.

Answer: D
 Inexpensive electronics may not be covered under a standard homeowner's insurance policy, or may have limited coverage. It's important to review the policy and consider additional coverage options for electronics.

The other options, A, B, and E, are typically covered under a standard homeowner's insurance policy, although coverage limits may apply. It's important to review the specific policy to understand what is and is not covered.

Question 8

Risks such as fire, theft, glass breakage, falling objects, vandalism, wind, hail, flood, tornado, lightning, earthquake, avalanche, or damage caused by hitting an animal are covered by what type of auto insurance?

Accepted Answer

Comprehensive physical damage coverage is designed to protect against all physical damage risks that are not covered by collision insurance. This includes fire, theft, glass breakage, falling objects, vandalism, wind, hail, flood, tornado, lightning, earthquake, avalanche, and damage caused by hitting an animal.

Question 9

What is not a determining factor when considering the amount of home insurance you need, as per the text?

Accepted Answer

The amount you can afford is not a determining factor when considering the amount of home insurance you need. It is important to have enough coverage to protect your home and belongings, regardless of what you can afford.

Question 10

Under the ____________ method for settling claims you receive the full cost of repairing or replacing a damaged or lost item and depreciation is not considered.

Accepted Answer

The replacement value method provides the full cost of repairing or replacing the damaged or lost item without taking depreciation into consideration. This method ensures that the insured can fully replace the item with a new one of the same kind and quality.

Question 11

Coverage for income replacement, medical, rehabilitation and attendant care expenses, and death and funeral costs for people who were injured in your automobile, including yourself are covered by what type of auto insurance?

Accepted Answer

Accident Benefits coverage provides income replacement, medical, rehabilitation and attendant care expenses, and death and funeral costs for people who were injured in your automobile, including yourself.

Question 12

What personal property is specifically excluded from coverage by a homeowner's insurance?

Accepted Answer

The rental portion of the home is specifically excluded from coverage by a homeowner's insurance because it is considered a commercial property.

Answer: D
 Inexpensive electronics are often excluded from coverage or have lower coverage limits under a homeowner's insurance policy. This is because they may not be worth enough to justify the cost of the premium.

The other choices (A, B, and E) are typically covered under a homeowner's insurance policy.

Question 13

An accident caused by an unidentified person is covered by what type of auto insurance?

Accepted Answer

Uninsured motorist's protection covers accidents caused by an unidentified person or a driver who doesn't have insurance. It provides coverage for bodily injury and property damage.

Question 14

________ is an automobile insurance program in which drivers involved in accidents collect medical expenses, lost wages, and related injury costs from their own insurance companies.

Accepted Answer

The given definition matches the concept of no-fault insurance, which is an automobile insurance program in which drivers involved in accidents collect medical expenses, lost wages, and related injury costs from their own insurance companies regardless of who caused the accident.

Question 15

Risk of financial loss due to legal expenses, medical expenses, lost wages, and other expenses associated with injuries caused by an automobile accident for which you were responsible are covered by what type of auto insurance?

Accepted Answer

Bodily injury coverage covers medical expenses, lost wages, legal expenses, and other expenses associated with injuries caused by an automobile accident for which you were responsible. This coverage is important to have in case of an accident where you are at fault and someone is injured.

Question 16

If you have a $500 claim resulting from a fire in your home and your policy stipulates that your deductible is $500, then the insurance company will pay you

Accepted Answer

Since the deductible is $500 and the claim is also $500, you are responsible for the entire amount, leaving the insurance company with nothing to pay.

Question 17

Wind damage occurs to your car costing $3,000 to repair.If you have a $500 deductible for collision and full coverage for comprehensive, what portion of the claim will the insurance company pay?

Accepted Answer

Since wind damage is covered under comprehensive insurance and you have full coverage, the insurance company will pay the repair cost minus the deductible. Therefore, they will pay $3,000 - $500 = $2,500.

Question 18

What type of liability is present when a person is held responsible for the actions of another?

Accepted Answer

Vicarious liability is when a person is held responsible for the actions of another, such as an employer being held responsible for the actions of their employee. This type of liability is not strict or unlimited, and negligence would only apply if there was a failure to take proper care that led to the actions of the other person. Limited liability refers to a situation where a person is only responsible for a certain amount of financial damages.

Question 19

Not driving to work is an example of what risk management technique?

Accepted Answer

Risk avoidance is the technique of completely avoiding the activity that may pose a risk. In this case, not driving to work is a way to avoid the potential risk of getting into a car accident or encountering bad weather during the commute.

Quiz 8: Home and Automobile Insurance

What personal property is specifically excluded from coverage by a homeowner's insurance?

Which of the following refers to a category based on your place of residence that is used to set automobile insurance premiums?

What private sector strategy is used for death?

What private sector strategy is used for illness?

What type of liability is present when a person is held responsible for intentional or unintentional actions?

Auto insurance premiums are not affected by?

What personal property is specifically excluded from coverage by a homeowner's insurance?

Risks such as fire, theft, glass breakage, falling objects, vandalism, wind, hail, flood, tornado, lightning, earthquake, avalanche, or damage caused by hitting an animal are covered by what type of auto insurance?

What is not a determining factor when considering the amount of home insurance you need, as per the text?

Under the ____________ method for settling claims you receive the full cost of repairing or replacing a damaged or lost item and depreciation is not considered.

Coverage for income replacement, medical, rehabilitation and attendant care expenses, and death and funeral costs for people who were injured in your automobile, including yourself are covered by what type of auto insurance?

What personal property is specifically excluded from coverage by a homeowner's insurance?

An accident caused by an unidentified person is covered by what type of auto insurance?

________ is an automobile insurance program in which drivers involved in accidents collect medical expenses, lost wages, and related injury costs from their own insurance companies.

Risk of financial loss due to legal expenses, medical expenses, lost wages, and other expenses associated with injuries caused by an automobile accident for which you were responsible are covered by what type of auto insurance?

If you have a $500 claim resulting from a fire in your home and your policy stipulates that your deductible is $500, then the insurance company will pay you

Wind damage occurs to your car costing $3,000 to repair.If you have a $500 deductible for collision and full coverage for comprehensive, what portion of the claim will the insurance company pay?

What type of liability is present when a person is held responsible for the actions of another?

Not driving to work is an example of what risk management technique?