MCS 2100 QUIZ 4 EXAM QUESTIONS AND ANSWERS
The legal responsibility for the financial cost of another person's losses or injuries is referred to as -
CORRECT ANSWER✅✅liability
Select the items that would be used to determine the required size of a life insurance benefit. -
CORRECT ANSWER✅✅Debts of insured, funeral expenses, living expenses of dependents
Kim just moved into her first apartment. The few possessions she has are mostly second hand and worth
very little so she has decided against tenant's insurance. By not taking tenant's insurance what risks has
she exposed herself to? You may choose more than one answer. - CORRECT ANSWER✅✅Her
negligence causes damage to the building, Her negligence causes damage to other tenant's property,
Loss of her possessions, She is responsible for personal injury of others in her apartment
A plan that insures a large number of persons under the terms of a single policy without a medical
examination is called a(n) ____________ life insurance policy plan. - CORRECT ANSWER✅✅group
Tom earns $63,000 annually. Calculate the amount of life insurance he needs using the income
replacement method. Round your answer to the nearest dollar. Enter your answer in this format
###,### - CORRECT ANSWER✅✅308,700
The Shipps bought an insurance policy on their house with limits of $100,000.00. Their home sustained
extensive wind damage a few years later. The damage was valued at $80,000.00. At that time their
house was estimated to have a replacement value of $170,000.00. Their policy had a co-insurance
clause that required that they have coverage for 80 percent of the replacement value. What would their
insurance settlement be? - CORRECT ANSWER✅✅58,823.53
Under the _____________ method of settling claims, you receive the full cost of repairing or replacing a
damaged or lost item and depreciation is not considered - CORRECT ANSWER✅✅replacement value
George was driving during a freezing rain storm. His car slid off the road and hit a tree. George sustained
some injuries that required physiotherapy. Under which insurance coverage would George's
physiotherapy costs be paid? - CORRECT ANSWER✅✅Accident benefits
The legal responsibility for the financial cost of another person's losses or injuries is referred to as -
CORRECT ANSWER✅✅liability
Select the items that would be used to determine the required size of a life insurance benefit. -
CORRECT ANSWER✅✅Debts of insured, funeral expenses, living expenses of dependents
Kim just moved into her first apartment. The few possessions she has are mostly second hand and worth
very little so she has decided against tenant's insurance. By not taking tenant's insurance what risks has
she exposed herself to? You may choose more than one answer. - CORRECT ANSWER✅✅Her
negligence causes damage to the building, Her negligence causes damage to other tenant's property,
Loss of her possessions, She is responsible for personal injury of others in her apartment
A plan that insures a large number of persons under the terms of a single policy without a medical
examination is called a(n) ____________ life insurance policy plan. - CORRECT ANSWER✅✅group
Tom earns $63,000 annually. Calculate the amount of life insurance he needs using the income
replacement method. Round your answer to the nearest dollar. Enter your answer in this format
###,### - CORRECT ANSWER✅✅308,700
The Shipps bought an insurance policy on their house with limits of $100,000.00. Their home sustained
extensive wind damage a few years later. The damage was valued at $80,000.00. At that time their
house was estimated to have a replacement value of $170,000.00. Their policy had a co-insurance
clause that required that they have coverage for 80 percent of the replacement value. What would their
insurance settlement be? - CORRECT ANSWER✅✅58,823.53
Under the _____________ method of settling claims, you receive the full cost of repairing or replacing a
damaged or lost item and depreciation is not considered - CORRECT ANSWER✅✅replacement value
George was driving during a freezing rain storm. His car slid off the road and hit a tree. George sustained
some injuries that required physiotherapy. Under which insurance coverage would George's
physiotherapy costs be paid? - CORRECT ANSWER✅✅Accident benefits
