Personal Finance Canadian 4th Edition Kapoor Test Bank

Personal Finance Canadian 4th Edition
Kapoor Test Bank

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c8
Student: ___________________________________________________________________________
1. The purpose of insurance is to help protect you and your family against financial hardship due to
hazard, accident, death, and the like.
True False
2. Personal risks, property risks, and liability risks are types of speculative risks.
True False
3. Risk management is not an organized strategy for protecting and conserving assets and people.
True False
4. The most common method of dealing with risk is to shift, or transfer it to an insurance company or
some other organization.
True False
5. A rider is an addition of coverage to a standard insurance policy.
True False
6. Property losses can be categorized into destruction of property, and losses due to robbery,
burglary, vandalism, or arson.
True False
7. Vicarious liability refers to the failure to take ordinary or reasonable care in a situation.
True False
8. The homeowners' pets are included in the coverage provided by the homeowners insurance.
True False
9. Personal property refers to building and other structures covered by homeowner's insurance.
True False
10. Personal belongings of a high value can be protected with a personal articles endorsement.
True False
11. There are no significant differences in home owner rates when comparing different insurance
companies
True False
12. Increased liability insurance is available with an umbrella policy.
True False
13. Voluntary medical payments 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.
True False
14. Replacement cost for settling property insurance claims is more costly than the actual cash value
method.
True False
15. A home made of wood is more expensive to insure than a comparable brick structure.
True False
16. The higher the deductible you choose for your car insurance, the higher the premium.
True False
17. Accident benefits automobile insurance coverage pays for the costs of injuries to persons in the
driver's vehicle.
True False
18. No-fault insurance systems have consistently reduced the time and costs involved in settling
claims.
True False
19. Collision coverage pays for damage to your vehicle for such hazards as fire, theft, or wind
damage.
True False
20. The driver classification category is based on automobile style, model, and value of the vehicle.
True False
21. The purpose of a high-risk pool is to assist people with poor driving records in obtaining
automobile insurance coverage.
True False
22. Peril is defined as
A. the refusal by an insurance company to pay for the covered loss.

B. the cause of risk.
C. the cause of a possible loss.
D. an uncertainty as to loss.
E. risk
23. Defective house wiring is an example of a
A. hazard.
B. peril.
C. risk.
D. speculation.
E. negligence.
24. The uncertainties of direct and indirect losses due to fire, wind, accident, theft, etc., are called
____________ risks.
A. personal
B. business
C. property
D. liability
E. speculative
25. Purchasing a technology stock that may or may not increase in price is an example of
___________ risk.
A. speculative
B. pure
C. commercial
D. personal
E. liability
26. Which of the following would be covered by a home insurance policy?
A. earthquake damage
B. flooding
C. brush fires
D. wind damage to your roof
E. theft of business supplies from your office
27. The legal responsibility for the financial cost of another person's losses or injuries is referred to
as
A. theft.
B. robbery.
C. liability.
D. assigned risk.
E. collusion.
28. If a homeowner leaves toys on stairs that result in injury to a delivery person, this may be ruled
as
A. vicarious liability.
B. negligence.
C. assigned risk.
D. umbrella coverage.
E. coinsurance.
29. Vicarious liability refers to
A. failure to take ordinary and reasonable care.

B. when a person is held responsible for actions of another person.
C. property damage.
D. high risk insurance coverage.
E. common hazards in our society.
30. 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.
A. umbrella
B. assigned
C. common situation
D. peril
E. vicarious
31. High winds cause damage to trees, shrubs, and other plants. This insurance claim would be
covered under the ____________ component of homeowner's insurance.
A. additional living expenses

B. personal property
C. building and other structures
D. personal liability
E. property damage
32. The additional living expenses component of a home insurance policy is designed to
A. pay for temporary housing while your home is repaired.

B. cover damage to property while away from home.
C. reimburse a homeowner for damage done by a visitor.
D. pay for medical expenses of people injured on your property.
E. pay for repairs caused by fire or other hazards.
33. Which of the following is considered personal property for home insurance coverage?
A. an automobile
B. a garage
C. a house
D. appliances
E. trees and shrubs
34. Georgette Valentine has expensive photography equipment for use in her hobby. Which coverage
from the following list would pay for damage or theft of this equipment?
A. an umbrella policy
B. a household inventory
C. additional living expense coverage
D. a personal articles endorsement
E. a coinsurance floater
35. The purpose of a household inventory is to
A. reduce insurance costs.

B. lower the chance of negligence
C. obtain personal property floater coverage.
D. increase liability coverage.
E. verify owned property.
36. The ____________ coverage of a home insurance policy would cover accidental damage to
another person's property by a member of your family.
A. voluntary property damages

C. medical payments
D. additional living expenses
E. personal liability
37. An umbrella policy is designed to cover
A. expensive personal property.

B. additional buildings on your property.
C. property when traveling away from home.
D. flood damage
E. major personal liability suits.
38. Most home insurance policies provide coverage for
A. earthquake damage.
B. flood damage.
C. an umbrella liability.
D. basic personal liability.
E. medical payments.
39. Tenant's insurance would include coverage for all of the following except
A. additional living expense coverage.

B. personal liability.
C. building and other structures.
D. personal property.
E. protection against financial loss due to damage.
40. Which of the following are not covered by tenant's insurance?
A. medical expenses for injuries to visitors

B. fire damage of the building's roof
C. additional living expenses
D. accidental damage to the property of others
E. cost of legal action due to personal liability
41. Your home insurance provides for replacement value for personal property losses. A microwave is
stolen. It cost $300 two years ago and has an expected life of six years. A comparable microwave
costs $200 today. What amount will the insurance company pay?
A. $100
B. $150
C. $200
D. $350
E. $300
42. Which of the following insurance policy provisions requires that the insured must pay for part of
the loss of a claim if the property is not insured for the specified percentage of replacement
value?
A. personal property floater

B. an endorsement
C. assigned risk clause
D. umbrella coverage
E. coinsurance clause
43. The ____________ method to settle claims is based on the current replacement cost of a
damaged or lost item less depreciation.
A. replacement value
B. actual cash value
C. umbrella
D. endorsement
E. personal articles endorsement
44. Home insurance costs are affected most directly by
A. the number of claims in an area.

B. insurance agents' commission.
C. government regulations that set premiums.
D. processing costs of claims.
E. the profits of the insurance company.
45. The purpose of minimum insurance legislation is to
A. risk of injury or death.

B. possibility of damage, destruction or theft.
C. third party liability.
D. A and B are correct.
E. A, B and C are correct.
46. ____________ provides coverage for the 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.
A. Medical payments
B. No-fault insurance
C. Uninsured motorist's protection
D. Bodily injury liability
E. Comprehensive insurance
47. Ahmed Hadad was injured in an accident caused by another driver who did not have insurance.
Ahmed's medical expenses would be covered by
A. medical payments.
B. collision.
C. bodily injury liability.
D. uninsured motorist's protection.
E. no-fault coverage.
48. Which of the following coverage's would pay for medical care for people who were injured in your
automobile?
A. comprehensive
B. bodily injury liability
C. collision
D. accident benefits
E. no-fault insurance
49. Which of the following is a system in which drivers involved in an accident collect medical
expenses, lost wages, and related injury costs from their own insurance company?
A. assigned risk pool

B. no-fault insurance
C. comprehensive system
D. financial responsibility coverage
E. uninsured motorist's protection
50. Comprehensive coverage would cover financial losses due to
A. injuries caused by a driver without insurance.

B. damage to your car in an accident for which you were at fault.
C. damage to your car caused by wind or hail.
D. legal action against you for an accident.
E. damage to a neighbor's tree with your car.
51. Your geographic location is a major factor in determining the ____________ used to calculate
your automobile insurance premiums.
A. driver classification
B. assigned risk pool
C. coverage level
D. legal responsibilities
E. rating territory
52. Wind damage occurs to your car costing $1000 to repair. If you have a $300 deductible for
collision and full coverage for comprehensive, what portion of the claim will the insurance
company pay?
A. $300
B. $1300
C. $500
D. $700
E. $800
53. Which of the following refers to a category based on age, sex, marital status, and driving habits
that is used to set automobile insurance premiums?
A. rating territory
C. no-fault system
D. driver classification
E. use of the vehicle
54. Which of the following factors is used to determine a person's driver classification?
A. Age
B. Type and age of vehicle
C. Claims in your geographic area
D. Insurance company claim processing costs
E. State insurance premium regulations
55. The purpose of a high-risk pool is to
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.
56. A system that allows insurance companies to provide coverage to several individuals with poor
driving records is referred to as
A. no-fault insurance.
B. an assigned risk pool.
C. premium discounts.
D. comprehensive coverage.
E. collision coverage.
57. Identify the areas covered by tenants' insurance.

I Personal property protection.
II Additional living expenses.
III Personal liability.
IV Replacement value of premises.
A. I, II and III only

B. I and III only
C. II, III and IV only
D. I, II, III and IV
E. I, II, and IV
58. Which of the following home insurance policies will have the highest premium?
A. Standard
B. Broad
C. Comprehensive
D. All forms will have the same cost.
E. Broad and Comprehensive are equally expensive
59. In the insurance industry, the term "peril" represents _______________.
A. the chance that something may be lost

B. the cause of the possible loss
C. a habit that increases the likelihood of loss
D. the actual loss experienced
E. your record of past losses
60. The requirement for a minimum level of home insurance coverage refers to which of the
following?
A. Deductible
B. Specified perils
C. Endorsement
D. Co-insurance
E. Basic
61. Which of the following is likely to increase your car insurance premium?
I. You live in a rural area.
II. You are over 70.
III. You usually carry several passengers.
A. I and II, only

B. II and III, only
C. I and III, only
D. I, II and III
E. I only
62. What events are commonly covered in a homeowner's insurance policy?

63. What factors affect the cost of home insurance?
64. Which type of automobile insurance is usually considered to be most important?
65. A friend wants to understand what affects the cost of auto insurance. Explain the factors used to
determine the automobile insurance premiums a person pays.
c8 Key
1. The purpose of insurance is to help protect you and your family against financial hardship due
(p. 227) to hazard, accident, death, and the like.
TRUE
Difficulty: Easy
Kapoor - Chapter 08 #1
2. Personal risks, property risks, and liability risks are types of speculative risks.
(p. 228)
FALSE
Difficulty: Medium
3. Risk management is not an organized strategy for protecting and conserving assets and
(p. 228) people.
FALSE
Difficulty: Easy
4. The most common method of dealing with risk is to shift, or transfer it to an insurance
(p. 229) company or some other organization.
TRUE
Difficulty: Medium
5. A rider is an addition of coverage to a standard insurance policy.

(p. 237)
TRUE
Difficulty: Easy
6. Property losses can be categorized into destruction of property, and losses due to robbery,
(p. 233) burglary, vandalism, or arson.
TRUE
Difficulty: Easy
7. Vicarious liability refers to the failure to take ordinary or reasonable care in a situation.
(p. 234)
FALSE
Difficulty: Medium
8. The homeowners' pets are included in the coverage provided by the homeowners insurance.
(p. 234)
FALSE
Difficulty: Easy
9. Personal property refers to building and other structures covered by homeowner's insurance.
(p. 235)
FALSE
Difficulty: Medium
10. Personal belongings of a high value can be protected with a personal articles endorsement.
(p. 235)
TRUE
Difficulty: Medium
11. There are no significant differences in home owner rates when comparing different insurance
(p. 243) companies
FALSE
Difficulty: Easy
12. Increased liability insurance is available with an umbrella policy.

(p. 236-
237)
TRUE
Difficulty: Medium
13. Voluntary medical payments coverage in a home insurance policy is designed to pay for legal
(p. 237) action taken against a homeowner who may be legally responsible for injury or property
damage of others.
FALSE
Difficulty: Medium
14. Replacement cost for settling property insurance claims is more costly than the actual cash
(p. 241) value method.
TRUE
Difficulty: Hard
15. A home made of wood is more expensive to insure than a comparable brick structure.
(p. 241-
242)
TRUE
Difficulty: Easy
16. The higher the deductible you choose for your car insurance, the higher the premium.
(p. 243)
FALSE
Difficulty: Medium
17. Accident benefits automobile insurance coverage pays for the costs of injuries to persons in
(p. 244) the driver's vehicle.
TRUE
Difficulty: Medium
18. No-fault insurance systems have consistently reduced the time and costs involved in settling
(p. 244) claims.
FALSE
Difficulty: Medium
19. Collision coverage pays for damage to your vehicle for such hazards as fire, theft, or wind
(p. 245) damage.
FALSE
Difficulty: Medium
20. The driver classification category is based on automobile style, model, and value of the
(p. 247) vehicle.
FALSE
Difficulty: Medium
21. The purpose of a high-risk pool is to assist people with poor driving records in obtaining
(p. 248) automobile insurance coverage.
TRUE
Difficulty: Medium
22. Peril is defined as
(p. 227)
A. the refusal by an insurance company to pay for the covered loss.

B. the cause of risk.
C. the cause of a possible loss.
D. an uncertainty as to loss.
E. risk
Difficulty: Easy
23. Defective house wiring is an example of a

(p. 227)
A. hazard.
B. peril.
C. risk.
D. speculation.
E. negligence.
Difficulty: Medium
24. The uncertainties of direct and indirect losses due to fire, wind, accident, theft, etc., are called
(p. 227) ____________ risks.
A. personal
B. business
C. property
D. liability
E. speculative
Difficulty: Medium
25. Purchasing a technology stock that may or may not increase in price is an example of
(p. 228) ___________ risk.
A. speculative
B. pure
C. commercial
D. personal
E. liability
Difficulty: Medium
26. Which of the following would be covered by a home insurance policy?
(p. 234)
A. earthquake damage
B. flooding
C. brush fires
D. wind damage to your roof
E. theft of business supplies from your office
Difficulty: Easy
27. The legal responsibility for the financial cost of another person's losses or injuries is referred to
(p. 234) as
A. theft.
B. robbery.
C. liability.
D. assigned risk.
E. collusion.
Difficulty: Medium
28. If a homeowner leaves toys on stairs that result in injury to a delivery person, this may be ruled
(p. 234) as
A. vicarious liability.
B. negligence.
C. assigned risk.
D. umbrella coverage.
E. coinsurance.
Difficulty: Easy
29. Vicarious liability refers to

(p. 234)
A. failure to take ordinary and reasonable care.

B. when a person is held responsible for actions of another person.
C. property damage.
D. high risk insurance coverage.
E. common hazards in our society.
Difficulty: Medium
30. While cleaning your home, a worker damages some furniture. You take action against the
(p. 234) worker's employer to cover the cost of the damage. This is an example of a(n) ____________
liability.
A. umbrella
B. assigned
C. common situation
D. peril
E. vicarious
Difficulty: Medium
31. High winds cause damage to trees, shrubs, and other plants. This insurance claim would be
(p. 234) covered under the ____________ component of homeowner's insurance.
A. additional living expenses

C. building and other structures
D. personal liability
E. property damage
Difficulty: Medium
32. The additional living expenses component of a home insurance policy is designed to
(p. 234)
A. pay for temporary housing while your home is repaired.

B. cover damage to property while away from home.
C. reimburse a homeowner for damage done by a visitor.
D. pay for medical expenses of people injured on your property.
E. pay for repairs caused by fire or other hazards.
Difficulty: Medium
33. Which of the following is considered personal property for home insurance coverage?
(p. 235)
A. an automobile
B. a garage
C. a house
D. appliances
E. trees and shrubs
Difficulty: Easy
34. Georgette Valentine has expensive photography equipment for use in her hobby. Which
(p. 235) coverage from the following list would pay for damage or theft of this equipment?
A. an umbrella policy
B. a household inventory
C. additional living expense coverage
D. a personal articles endorsement
E. a coinsurance floater
Difficulty: Medium
35. The purpose of a household inventory is to

(p. 235)
A. reduce insurance costs.

B. lower the chance of negligence
C. obtain personal property floater coverage.
D. increase liability coverage.
E. verify owned property.
Difficulty: Medium
36. The ____________ coverage of a home insurance policy would cover accidental damage to
(p. 237) another person's property by a member of your family.
A. voluntary property damages

C. medical payments
D. additional living expenses
E. personal liability
Difficulty: Medium
37. An umbrella policy is designed to cover

(p. 237)
A. expensive personal property.

B. additional buildings on your property.
C. property when traveling away from home.
D. flood damage
E. major personal liability suits.
Difficulty: Medium
38. Most home insurance policies provide coverage for
(p. 237)
A. earthquake damage.
B. flood damage.
C. an umbrella liability.
D. basic personal liability.
E. medical payments.
Difficulty: Easy
39. Tenant's insurance would include coverage for all of the following except
(p. 237)
A. additional living expense coverage.

B. personal liability.
C. building and other structures.
D. personal property.
E. protection against financial loss due to damage.
Difficulty: Medium
40. Which of the following are not covered by tenant's insurance?

(p. 238)
A. medical expenses for injuries to visitors

B. fire damage of the building's roof
C. additional living expenses
D. accidental damage to the property of others
E. cost of legal action due to personal liability
Difficulty: Medium
41. Your home insurance provides for replacement value for personal property losses. A
(p. 241) microwave is stolen. It cost $300 two years ago and has an expected life of six years. A
comparable microwave costs $200 today. What amount will the insurance company pay?
A. $100
B. $150
C. $200
D. $350
E. $300
Difficulty: Medium
42. Which of the following insurance policy provisions requires that the insured must pay for part
(p. 240) of the loss of a claim if the property is not insured for the specified percentage of replacement
value?
A. personal property floater

B. an endorsement
C. assigned risk clause
D. umbrella coverage
E. coinsurance clause
Difficulty: Medium
43. The ____________ method to settle claims is based on the current replacement cost of a
(p. 241) damaged or lost item less depreciation.
A. replacement value
B. actual cash value
C. umbrella
D. endorsement
E. personal articles endorsement
Difficulty: Medium
44. Home insurance costs are affected most directly by

(p. 241)
A. the number of claims in an area.

B. insurance agents' commission.
C. government regulations that set premiums.
D. processing costs of claims.
E. the profits of the insurance company.
Difficulty: Medium
45. The purpose of minimum insurance legislation is to

(p. 242)
A. risk of injury or death.

B. possibility of damage, destruction or theft.
C. third party liability.
D. A and B are correct.
E. A, B and C are correct.
Difficulty: Medium
46. ____________ provides coverage for the risk of financial loss due to legal expenses, medical
(p. 244) expenses, lost wages, and other expenses associated with injuries caused by an automobile
accident for which you were responsible.
A. Medical payments
B. No-fault insurance
C. Uninsured motorist's protection
D. Bodily injury liability
E. Comprehensive insurance
Difficulty: Easy
47. Ahmed Hadad was injured in an accident caused by another driver who did not have
(p. 245) insurance. Ahmed's medical expenses would be covered by
A. medical payments.
B. collision.
C. bodily injury liability.
D. uninsured motorist's protection.
E. no-fault coverage.
Difficulty: Medium
48. Which of the following coverage's would pay for medical care for people who were injured in
(p. 244) your automobile?
A. comprehensive
B. bodily injury liability
C. collision
D. accident benefits
E. no-fault insurance
Difficulty: Easy
49. Which of the following is a system in which drivers involved in an accident collect medical
(p. 245) expenses, lost wages, and related injury costs from their own insurance company?
A. assigned risk pool

B. no-fault insurance
C. comprehensive system
D. financial responsibility coverage
E. uninsured motorist's protection
Difficulty: Medium
50. Comprehensive coverage would cover financial losses due to

(p. 245)
A. injuries caused by a driver without insurance.

B. damage to your car in an accident for which you were at fault.
C. damage to your car caused by wind or hail.
D. legal action against you for an accident.
E. damage to a neighbor's tree with your car.
Difficulty: Medium
51. Your geographic location is a major factor in determining the ____________ used to calculate
(p. 247) your automobile insurance premiums.
A. driver classification
C. coverage level
D. legal responsibilities
E. rating territory
Difficulty: Easy
52. Wind damage occurs to your car costing $1000 to repair. If you have a $300 deductible for
(p. 245) collision and full coverage for comprehensive, what portion of the claim will the insurance
company pay?
A. $300
B. $1300
C. $500
D. $700
E. $800
Difficulty: Easy
53. Which of the following refers to a category based on age, sex, marital status, and driving
(p. 247) habits that is used to set automobile insurance premiums?
A. rating territory
C. no-fault system
D. driver classification
E. use of the vehicle
Difficulty: Easy
54. Which of the following factors is used to determine a person's driver classification?
(p. 245)
A. Age
B. Type and age of vehicle
C. Claims in your geographic area
D. Insurance company claim processing costs
E. State insurance premium regulations
Difficulty: Medium
55. The purpose of a high-risk pool is to

(p. 248)
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.
Difficulty: Medium
56. A system that allows insurance companies to provide coverage to several individuals with poor
(p. 248) driving records is referred to as
A. no-fault insurance.
B. an assigned risk pool.
C. premium discounts.
D. comprehensive coverage.
E. collision coverage.
Difficulty: Easy
57. Identify the areas covered by tenants' insurance.
(p. 237) I Personal property protection.
II Additional living expenses.
III Personal liability.
IV Replacement value of premises.
A. I, II and III only

B. I and III only
C. II, III and IV only
D. I, II, III and IV
E. I, II, and IV
Difficulty: Medium
58. Which of the following home insurance policies will have the highest premium?
(p. 227)
A. Standard
B. Broad
C. Comprehensive
D. All forms will have the same cost.
E. Broad and Comprehensive are equally expensive
Difficulty: Hard
59. In the insurance industry, the term "peril" represents _______________.

(p. 227)
A. the chance that something may be lost

B. the cause of the possible loss
C. a habit that increases the likelihood of loss
D. the actual loss experienced
E. your record of past losses
Difficulty: Easy
60. The requirement for a minimum level of home insurance coverage refers to which of the
(p. 240) following?
A. Deductible
B. Specified perils
C. Endorsement
D. Co-insurance
E. Basic
Difficulty: Medium
61. Which of the following is likely to increase your car insurance premium?
(p. 246) I. You live in a rural area.
II. You are over 70.
III. You usually carry several passengers.
A. I and II, only

B. II and III, only
C. I and III, only
D. I, II and III
E. I only
Difficulty: Medium
62. What events are commonly covered in a homeowner's insurance policy?

(p. 234-
237)
Most home insurance policies include coverage against fire, theft, and other hazards for your
home and other structures, and personal property. In addition, policies cover additional living
expenses, personal liability, medical payments, and supplemental coverage for minor property
damage mishaps.
Difficulty: Medium
63. What factors affect the cost of home insurance?

(p. 241-
242)
The main influences on home insurance costs are type of home, construction materials,
location of residence, amount of coverage, type of policy (basic, broad, special), deductibles,
discounts for fire and burglary devices, and the company selected.
Difficulty: Medium
64. Which type of automobile insurance is usually considered to be most important?

(p. 244-
245)
While protection from financial loss as a result of damage or theft of your vehicle is important,
most financial and insurance advisors consider liability coverage most crucial. An accident in
which you are responsible for the injuries of another person could result in a financial claim
against you in the hundreds of thousands or millions of dollars.
Difficulty: Medium
65. A friend wants to understand what affects the cost of auto insurance. Explain the factors used
(p. 246- to determine the automobile insurance premiums a person pays.
247)
The main factors that influence the amount paid for auto insurance are the year, make, and
model of automobile; your geographic location; your driver classification, including age, sex,
marital status, driving record and driving habits; the use of vehicle; the amount of coverage;
and discounts for driver training, security devices, or other factors.
Difficulty: Medium
c8 Summary
Category # of Questions
Difficulty: Easy 19
Difficulty: Hard 2
Difficulty: Medium 44
Kapoor - Chapter 08 65

Personal Finance Canadian 4th Edition Kapoor Test Bank

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Personal Finance Canadian 4th Edition Kapoor Test Bank

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Personal Finance Canadian 4th Edition

Kapoor Test Bank

5. A rider is an addition of coverage to a standard insurance policy.

12. Increased liability insurance is available with an umbrella policy.

22. Peril is defined as

A. the refusal by an insurance company to pay for the covered loss.

23. Defective house wiring is an example of a

29. Vicarious liability refers to

A. failure to take ordinary and reasonable care.

A. additional living expenses

A. pay for temporary housing while your home is repaired.

35. The purpose of a household inventory is to

A. reduce insurance costs.

A. voluntary property damages

37. An umbrella policy is designed to cover

A. expensive personal property.

38. Most home insurance policies provide coverage for

A. additional living expense coverage.

40. Which of the following are not covered by tenant's insurance?

A. medical expenses for injuries to visitors

A. personal property floater

44. Home insurance costs are affected most directly by

A. the number of claims in an area.

45. The purpose of minimum insurance legislation is to

A. risk of injury or death.

A. assigned risk pool

50. Comprehensive coverage would cover financial losses due to

A. injuries caused by a driver without insurance.

A. provide insurance for poor drivers.

57. Identify the areas covered by tenants' insurance.

A. I, II and III only

A. the chance that something may be lost

A. I and II, only

62. What events are commonly covered in a homeowner's insurance policy?

64. Which type of automobile insurance is usually considered to be most important?

5. A rider is an addition of coverage to a standard insurance policy.

12. Increased liability insurance is available with an umbrella policy.

A. the refusal by an insurance company to pay for the covered loss.

23. Defective house wiring is an example of a

29. Vicarious liability refers to

A. failure to take ordinary and reasonable care.

A. additional living expenses

A. pay for temporary housing while your home is repaired.

35. The purpose of a household inventory is to

A. reduce insurance costs.

A. voluntary property damages

37. An umbrella policy is designed to cover

A. expensive personal property.

A. additional living expense coverage.

40. Which of the following are not covered by tenant's insurance?

A. medical expenses for injuries to visitors

A. personal property floater

44. Home insurance costs are affected most directly by

A. the number of claims in an area.

45. The purpose of minimum insurance legislation is to

A. risk of injury or death.

A. assigned risk pool

50. Comprehensive coverage would cover financial losses due to

A. injuries caused by a driver without insurance.

55. The purpose of a high-risk pool is to

A. provide insurance for poor drivers.

A. I, II and III only

59. In the insurance industry, the term "peril" represents _______________.

A. the chance that something may be lost