Ch.10 Quiz

Instructions
Please read the questions carefully.

This assessment is worth 100 points.

  1. Self-insurance is the process of establishing a monetary fund that can be used to cover the cost of a loss.    (5 points)

      
      

  2. Property losses can be categorized into destruction of property, and losses due to robbery, burglary, vandalism, or arson.    (5 points)

      
      

  3. Vicarious liability refers to the failure to take ordinary or reasonable care in a situation.    (5 points)

      
      

  4. The purpose of a household inventory is to provide evidence of items covered by home insurance.    (5 points)

      
      

  5. Increased liability insurance is available with an umbrella policy.    (5 points)

      
      

  6. Medical payments coverage in a home insurance policy is designed to pay for legal action taken against a homeowner who may be legally responsible for injury or property damage of others.    (5 points)

      
      

  7. Replacement cost for settling property insurance claims is less costly than the actual cash value method.    (5 points)

      
      

  8. A home made of wood is more expensive to insure than a comparable brick structure.    (5 points)

      
      

  9. Medical payments automobile insurance coverage pays for the costs of injuries to persons in the driver's vehicle.    (5 points)

      
      

  10. The driver classification category is based on automobile style, model, and value of the vehicle.    (5 points)

      
      

  11. The uncertainties of direct and indirect losses to personal or real property due to fire, wind, accident, theft, etc., are called ____________ risks.    (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  12. Using a home security system is an example of ____________ risk.    (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  13. Wearing a seat belt in an automobile to protect yourself against injury is an   (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  14. 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 example of a(n) ____________ liability.    (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  15. The additional living expenses component of a home insurance policy is designed to    (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  16. Most home insurance policies provide coverage for    (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  17. Which form of homeowner's policy provides coverage for the most risks?    (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  18. ____________ protects you against financial loss when your car damages the property of others.    (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  19. Your geographic location is a major factor in determining the ____________ used to calculate your automobile insurance premiums.    (5 points)

    a.  
    b.  
    c.  
    d.  
    e.  

  20. A system that requires each insurance company operating in a state to provide coverage to several individuals with poor driving records is referred to as    (5 points)

    a.  
    b.  
    c.  
    d.  



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