Ch 8: Personal Finance

Front 1

Peril is defined as

Back 1

the cause of possible loss

Front 2

Defective house wiring is an ex. Of a

Back 2

hazard

Front 3

The uncertainties and indirect losses due to fire, wind, accident, theft, etc, are called_____risks

Back 3

property

Front 4

Purchasing a technology stock that may or may not incr. in price is an example of _________risk

Back 4

speculative

Front 5

Which of the following would be covered by a home insurance policy

Back 5

widn damage to your roof

Front 6

The legal responsibility for the financial cost of another person’s losses or injuries is referred to

Back 6

liability

Front 7

If a homeowner leaves toys on stairs that result in injury to a delivery person, this may be ruled

Back 7

negligence

Front 8

Vicarious liability refers to

Back 8

when a person is held responsible for actions of another person

Front 9

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

Back 9

vicarious

Front 10

High winds cause damage to trees, shrubs, and other plants. This insurance claim would be covered under the ________ component of homeowner’s insurance

Back 10

building and other structures

Front 11

The additional living expenses component of a home insurance policy is designed to

Back 11

pay for temporary housing while your home is repaired

Front 12

Which of the following is considered personal property for home insurance coverage?

Back 12

appliances

Front 13

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?

Back 13

a personal articles endorsement

Front 14

The purpose of a household inventory is to

Back 14

verify owned property

Front 15

The ____________ coverage of a home insurance policy would cover accidental damage to another person’s property by a member of your family

Back 15

voluntary property damages

Front 16

An umbrella policy is designed to cover

Back 16

major liability suits

Front 17

Most home insurance policies prodive coverage for

Back 17

medical payments

Front 18

Tenant’s insurance would include coverage for all of the following except

Back 18

building and other structures

Front 19

Which of the following are not covered by tenant’s insurance?

Back 19

fire damage of the building’s roof

Front 20

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

Back 20

coinsurance clause

Front 21

The ______ method to settle claims is based on the current replacement cost of a damaged or lost item less depreciation

Back 21

actual cash value

Front 22

Home insurance costs are affected most directly by

Back 22

the number of claims in an area

Front 23

The purpose of min. insurance legislation is to

Back 23

risk of injury or death, possibility of damage, destruction or theft, 3rd party liability

Front 24

__________ 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

Back 24

bodily injury liability

Front 25

Ahmed was injured in an accident caused by another driver who did not have insurance, medical expenses would be covered by

Back 25

uninsured motorist’s protection

Front 26

Which of the following coverage’s would pay for medical care for people who were injured in your automobile

Back 26

accident benefits

Front 27

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

Back 27

no fault insurance

Front 28

Comprehensive coverage would cover financial losses due to

Back 28

damage to your car caused by wind or hail

Front 29

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

Back 29

rating territory

Front 30

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?

Back 30

700

Front 31

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

Back 31

driver classification

Front 32

Which of the following factors is used to determine a person’s driver classification

Back 32

age

Front 33

The purpose of high-risk pool is to

Back 33

provide insurance for poor drivers

Front 34

A system that allows insurance companies to provide coverage to several individuals with poor driving records is referred to as

Back 34

an assigned risk pool

Front 35

The req’t for min. level of home insurance coverage refers to which of the following

Back 35

co-insurance

Front 36

Risk is

Back 36

the chance that something may be lost

Front 37

Hazard

Back 37

increases the likelihood of loss through some peril

Front 38

Property risks

Back 38

are the uncertainties of direct losses to property due to fire, winstorms, accidents, theft, and other hazards

Front 39

Liability risk

Back 39

is loss possibilities due to negligence resulting in bodily harm or property damage to others

Front 40

A speculative risk

Back 40

is a risk that carried a chance of either loss or gain and are legally defined as uninsurable

Front 41

Which of the following would be covered by a home insurance policy

Back 41

fire damage to your garage

Front 42

Which of the following is considered personal property for home insurance coverage?

Back 42

furniture

Front 43

Anne has an expensive diamond ring. Which coverage from the following list would pay for damage or theft of this item

Back 43

a personal articles endorsement

Front 44

Tenant’s insurance would include coverage for all of the following except

Back 44

automobile theft

Front 45

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

Back 45

replacement value

Front 46

_______ 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

Back 46

no-fault insurance

Front 47

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?

Back 47

2500

Front 48

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

Back 48

rating territory