FIN-300 CH 8-14 Assessments
The most common risks are - question and answerpersonal risks, property risks, liability
risks
If you choose to avoid the risk of a traffic accident by not driving to work, you are using -
question and answerrisk avoidance
Barbara left a skateboard on her front steps. Her neighbor tripped on the skateboard
and was injured. The fact that Barbara didn't put away the skateboard is called -
question and answernegligence
What is the fee that a policyholder pays when an insurance company agrees to take on
the risk? - question and answerpremium
The failure to take ordinary or reasonable care to prevent accidents from happening is
called - question and answernegligence
An insurance company is a _________ business that agrees to pay for losses that may
happen to someone it insures. - question and answerrisk-sharing
Liability is defined as - question and answerThe legal responsibility for the financial cost
of another person's losses or injuries.
A policy that supplements your basic personal liability coverage is called a(n) - question
and answerumbrella policy
Homeowner's insurance covers all of the following except - question and
answerpersonal property, detached garage, trees and shrubs, a toolshed
When Stanley was visiting Elaine, he tripped on her front porch step and sprained his
ankle. His injuries were covered by - question and answerElaine's medical payments
coverage.
The best place to keep a household inventory is - question and answerin a safe deposit
box
, Home insurance policies include coverage for all of the following except - question and
answerbusiness property
Tom wanted to receive as many discounts on his home insurance as possible. Which of
the following would NOT provide a discount? - question and answerdeadbolt locks, fire
extinguisher, smoke detector, alarm systems
Andrew is applying for insurance for his new home. Which of the following is correct? -
question and answerHe should use the replacement value method for settling claims to
receive the full cost of repairing or replacing his personal belongings.
Various states are trying to reduce the time and cost of settling vehicle injury cases.
One alternative is - question and answerUsing the no-fault system.
Last month some of your friends were injured in an accident. Their total injuries were as
follows:
•Brenda$85,000
•Raquel$125,000
•Louis$40,000
Coverage was 100/300/50. What was the total medical coverage in this accident? -
question and answer225,000
Explanation:
Since injuries are covered up to $100,000 per person and $300,000 for all injured
parties in the accident, Brenda and Louis are fully covered. Raquel's coverage would be
limited to $100,000.
Samantha was driving on the highway during a storm and hail dented her car. This
damage would be covered under her - question and answerComprehensive physical
damage coverage.
Madeline had a severe allergy attack and crashed her car into a telephone pole while
sneezing. The damage to the telephone pole would be covered under Madeline's -
question and answerProperty damage liability coverage.
Amber had permission from Bradley to borrow his car to run some errands.
Unfortunately, while Amber was driving, she looked down to change songs on her iPod
and sideswiped a car and hit a bicyclist. Based on her experience, which of the
following would be true? - question and answerAmber's insurance policy should cover
any property damage claims since she was driving Bradley's car with his permission.
Which of the following should reduce your auto insurance premium? - question and
answerMaintain good grades in college
The most common risks are - question and answerpersonal risks, property risks, liability
risks
If you choose to avoid the risk of a traffic accident by not driving to work, you are using -
question and answerrisk avoidance
Barbara left a skateboard on her front steps. Her neighbor tripped on the skateboard
and was injured. The fact that Barbara didn't put away the skateboard is called -
question and answernegligence
What is the fee that a policyholder pays when an insurance company agrees to take on
the risk? - question and answerpremium
The failure to take ordinary or reasonable care to prevent accidents from happening is
called - question and answernegligence
An insurance company is a _________ business that agrees to pay for losses that may
happen to someone it insures. - question and answerrisk-sharing
Liability is defined as - question and answerThe legal responsibility for the financial cost
of another person's losses or injuries.
A policy that supplements your basic personal liability coverage is called a(n) - question
and answerumbrella policy
Homeowner's insurance covers all of the following except - question and
answerpersonal property, detached garage, trees and shrubs, a toolshed
When Stanley was visiting Elaine, he tripped on her front porch step and sprained his
ankle. His injuries were covered by - question and answerElaine's medical payments
coverage.
The best place to keep a household inventory is - question and answerin a safe deposit
box
, Home insurance policies include coverage for all of the following except - question and
answerbusiness property
Tom wanted to receive as many discounts on his home insurance as possible. Which of
the following would NOT provide a discount? - question and answerdeadbolt locks, fire
extinguisher, smoke detector, alarm systems
Andrew is applying for insurance for his new home. Which of the following is correct? -
question and answerHe should use the replacement value method for settling claims to
receive the full cost of repairing or replacing his personal belongings.
Various states are trying to reduce the time and cost of settling vehicle injury cases.
One alternative is - question and answerUsing the no-fault system.
Last month some of your friends were injured in an accident. Their total injuries were as
follows:
•Brenda$85,000
•Raquel$125,000
•Louis$40,000
Coverage was 100/300/50. What was the total medical coverage in this accident? -
question and answer225,000
Explanation:
Since injuries are covered up to $100,000 per person and $300,000 for all injured
parties in the accident, Brenda and Louis are fully covered. Raquel's coverage would be
limited to $100,000.
Samantha was driving on the highway during a storm and hail dented her car. This
damage would be covered under her - question and answerComprehensive physical
damage coverage.
Madeline had a severe allergy attack and crashed her car into a telephone pole while
sneezing. The damage to the telephone pole would be covered under Madeline's -
question and answerProperty damage liability coverage.
Amber had permission from Bradley to borrow his car to run some errands.
Unfortunately, while Amber was driving, she looked down to change songs on her iPod
and sideswiped a car and hit a bicyclist. Based on her experience, which of the
following would be true? - question and answerAmber's insurance policy should cover
any property damage claims since she was driving Bradley's car with his permission.
Which of the following should reduce your auto insurance premium? - question and
answerMaintain good grades in college
