Property and Casualty Principles Study Questions and Correct Answers

In which of the following instances have people benefited because they owned insurance? A) After a tornado destroys the albert family home their insurance company pays to have it rebuilt exactly as it used to be on the same lot. B) Thieves break the window on Lisa Smith's Car and steal her factory installed CD player; the insurance company pays for the damage to the car, including a new CD player. C) Tim harper loses control of his car while driving and strikes john tayler a pedestrian. John is disabled and sues Tim for his medical expenses a lifetime of lost wages and pain and suffering. The insurance company pays john's claim against tim. D) All of these. D Who of the following other than the owners of the business would benefit from insurance on a business when it suffers an insured loss? A) Employees of the business who are able to resume their jobs. B) Suppliers of the business who regain their business revenues. C) Customers of the business who can obtain products and services. D) All of the above. D Select the correct statement. A) The primary contribution the insurance industry makes to the well-being of the public is in its response to natural disasters such as hurricanes. B) The only people in the insurance industry who make a contribution to the well-being of the public are those who deal directly with it. C) Anyone involved in the insurance industry can make an important contribution to the well-being of the public every day by doing the best job possible. D) none of these statements are correct. C Which of the following are ways the insurance industry helps prevent losses? A) A nation association of insurance companies donate $20,000 to the Nation safety Council. B) XYZ insurance company sends an engineer to inspect the steam boilers and other machinery at ABC Company a prospective insured. C) DEF insurance company offers a 10% premium discount on property insurance to homeowners who have smoke alarms fire extinguishers and alarm systems installed in their homes. D) All of these. D Keri Purchases $20,000 car using $5,000 of her own money and a $15,000 bank loan. She ahs the car insured. While she is driving the car home form the dealership it collides with another car. No one is hurt but her new car is destroyed. Who will receive insurance benefits under Keri's policy? A) Keri B) the bank C) both D) the car dealer C