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48 Cards in this Set

  • Front
  • Back
Peril is defined as
the cause of possible loss
Defective house wiring is an ex. Of a
hazard
The uncertainties and indirect losses due to fire, wind, accident, theft, etc, are called_____risks
property
Purchasing a technology stock that may or may not incr. in price is an example of _________risk
speculative
Which of the following would be covered by a home insurance policy
widn damage to your roof
The legal responsibility for the financial cost of another person’s losses or injuries is referred to
liability
If a homeowner leaves toys on stairs that result in injury to a delivery person, this may be ruled
negligence
Vicarious liability refers to
when a person is held responsible for actions of another person
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 ex. Of ____________ liability
vicarious
High winds cause damage to trees, shrubs, and other plants. This insurance claim would be covered under the ________ component of homeowner’s insurance
building and other structures
The additional living expenses component of a home insurance policy is designed to
pay for temporary housing while your home is repaired
Which of the following is considered personal property for home insurance coverage?
appliances
Georgette has expensice photography equipment for use in her hobby. Which coverage from the following list would pay for damage or theft of this equipment?
a personal articles endorsement
The purpose of a household inventory is to
verify owned property
The ____________ coverage of a home insurance policy would cover accidental damage to another person’s property by a member of your family
voluntary property damages
An umbrella policy is designed to cover
major liability suits
Most home insurance policies prodive coverage for
medical payments
Tenant’s insurance would include coverage for all of the following except
building and other structures
Which of the following are not covered by tenant’s insurance?
fire damage of the building’s roof
Which of the following insurance policy provisions req. that the insured must pay for part of the loss of a claim if the property is not insured for the specified % of replacement value
coinsurance clause
The ______ method to settle claims is based on the current replacement cost of a damaged or lost item less depreciation
actual cash value
Home insurance costs are affected most directly by
the number of claims in an area
The purpose of min. insurance legislation is to
risk of injury or death, possibility of damage, destruction or theft, 3rd party liability
__________ 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
bodily injury liability
Ahmed was injured in an accident caused by another driver who did not have insurance, medical expenses would be covered by
uninsured motorist’s protection
Which of the following coverage’s would pay for medical care for people who were injured in your automobile
accident benefits
Which of the following is a system in which drivers involved in an accident collect medical expense, lost wages, and related injury costs from their own insurance company
no fault insurance
Comprehensive coverage would cover financial losses due to
damage to your car caused by wind or hail
Your geographic location is a major factor in determining the ________ used to calculate your automobile insurance premiums
rating territory
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?
700
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
driver classification
Which of the following factors is used to determine a person’s driver classification
age
The purpose of high-risk pool is to
provide insurance for poor drivers
A system that allows insurance companies to provide coverage to several individuals with poor driving records is referred to as
an assigned risk pool
The req’t for min. level of home insurance coverage refers to which of the following
co-insurance
Risk is
the chance that something may be lost
Hazard
increases the likelihood of loss through some peril
Property risks
are the uncertainties of direct losses to property due to fire, winstorms, accidents, theft, and other hazards
Liability risk
is loss possibilities due to negligence resulting in bodily harm or property damage to others
A speculative risk
is a risk that carried a chance of either loss or gain and are legally defined as uninsurable
Which of the following would be covered by a home insurance policy
fire damage to your garage
Which of the following is considered personal property for home insurance coverage?
furniture
Anne has an expensive diamond ring. Which coverage from the following list would pay for damage or theft of this item
a personal articles endorsement
Tenant’s insurance would include coverage for all of the following except
automobile theft
Under the _______ method for settling claims you receive the full cost of repairing or replacing a damaged or lost item and depreciation or lost item and depreciation in not considered
replacement value
_______ 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
no-fault insurance
Wind damage occurs to your car costing $3000 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?
2500
Which of the following refers to a catergory based on your place of residence that is used to set automobile insurance premiums
rating territory