Question 1

A person who fails to file an accident report may have his or her driver's license revoked as a result.

Accepted Answer

A) True 
 B)False

Question 2

Coverage for loss that is limited to a specific amount is called

Accepted Answer

A)   limited coverage.
B)   open coverage.
C)   valued coverage.
D)   minimum coverage.

Question 3

Kline signed a contract to buy a house and insured the house against fire and loss. Prior to closing, a fire destroyed the house. Can Kline collect the proceeds of the insurance policy?

Accepted Answer

Yes. Kline has an insurable interest in the property because of his contract to buy it.

Question 4

Insurance purchased from a broker is effective when

Accepted Answer

A)   the application is filled out.
B)   the first premium is paid.
C)   the company accepts it.
D)   a binder is issued.

Question 5

A(n) ____________________ sells insurance for the company by whom he or she is employed.

Accepted Answer

The answer of A(n) ____________________ sells insurance for the company...

Question 6

____________________ is a means of sharing risks with other people to limit economic loss.

Accepted Answer

The answer of ____________________ is a means of sharing risks...

Question 7

The ____________________clause provides protection for a car owner and anyone who drives the car with the owner's permission.

Accepted Answer

The answer of The ____________________clause provides protection for a car...

Question 8

A homeowners policy covers loss caused by

Accepted Answer

A)   fire.
B)   explosion.
C)   burglary.
D)   all of these. D

Question 9

Insurance policies cannot be assigned before a loss occurs without the insurer's permission.

Accepted Answer

A) True 
 B)False

Question 10

Damage caused by rioters is covered by a standard fire insurance policy.

Accepted Answer

A) True 
 B)False

Question 11

Reimbursement for a loss is called

Accepted Answer

A)   subrogation.
B)   indemnification.
C)   release.
D)   deductible.

Question 12

An extended coverage rider would not cover loss caused by

Accepted Answer

A)   burglary.
B)   smoke.
C)   explosion.
D)   windstorm.

Question 13

Damage caused to a vehicle by a falling tree would be covered by collision insurance.

Accepted Answer

A) True 
 B)False

Question 14

Comprehensive insurance covers damage to the insured's car from all of the following except

Accepted Answer

A)   collision.
B)   theft.
C)   vandalism.
D)   flood.

Question 15

Damage to your car caused by hitting a tree would be covered by

Accepted Answer

A)   property damage liability insurance.
B)   uninsured motorist coverage.
C)   collision insurance.
D)   comprehensive insurance

Question 16

The guest laws relieve a driver of all liability for injuries to

Accepted Answer

A)   all passengers
B)   guests unless there is negligence.
C)   passengers unless there is any negligence by the driver.
D)   none of these.

Question 17

A property owner always has an insurable interest.

Accepted Answer

A) True 
 B)False  True

Question 18

Any risk not covered is known as a deductible.

Accepted Answer

A) True 
 B)False

Question 19

A document adding to an insurance policy is called a

Accepted Answer

A)   codicil.
B)   subrogation.
C)   release.
D)   rider.

Question 20

Damage to one's boat would be covered by a(n)

Accepted Answer

A)   renter's policy.
B)   marine policy.
C)   ocean policy.
D)   personal policy.

Exam 37: Property, Casualty and Automobile Insurance

A person who fails to file an accident report may have his or her driver's license revoked as a result.

Correct AnswerverifiedShow Answer

Coverage for loss that is limited to a specific amount is called

Correct AnswerverifiedShow Answer

Kline signed a contract to buy a house and insured the house against fire and loss. Prior to closing, a fire destroyed the house. Can Kline collect the proceeds of the insurance policy?

Correct AnswerverifiedYes. Kline has an insurable interest in the property because of his contract to buy it.

Insurance purchased from a broker is effective when

Correct AnswerverifiedShow Answer

A(n) ____________________ sells insurance for the company by whom he or she is employed.

Correct AnswerverifiedShow Answer

____________________ is a means of sharing risks with other people to limit economic loss.

Correct AnswerverifiedShow Answer

The ____________________clause provides protection for a car owner and anyone who drives the car with the owner's permission.

Correct AnswerverifiedShow Answer

A homeowners policy covers loss caused by

Correct AnswerverifiedD

Insurance policies cannot be assigned before a loss occurs without the insurer's permission.

Correct AnswerverifiedShow Answer

Damage caused by rioters is covered by a standard fire insurance policy.

Correct AnswerverifiedShow Answer

Reimbursement for a loss is called

Correct AnswerverifiedShow Answer

An extended coverage rider would not cover loss caused by

Correct AnswerverifiedShow Answer

Damage caused to a vehicle by a falling tree would be covered by collision insurance.

Correct AnswerverifiedShow Answer

Comprehensive insurance covers damage to the insured's car from all of the following except

Correct AnswerverifiedShow Answer

Damage to your car caused by hitting a tree would be covered by

Correct AnswerverifiedShow Answer

The guest laws relieve a driver of all liability for injuries to

Correct AnswerverifiedShow Answer

A property owner always has an insurable interest.

Correct AnswerverifiedTrue

Any risk not covered is known as a deductible.

Correct AnswerverifiedShow Answer

A document adding to an insurance policy is called a

Correct AnswerverifiedShow Answer

Damage to one's boat would be covered by a(n)

Correct AnswerverifiedShow Answer

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Yes. Kline has an insurable interest in the property because of his contract to buy it.

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D

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True

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