Site MapHelpFeedbackChapter Quiz
Chapter Quiz
(See related pages)

Anything that increases the chances of a loss through some peril is called:
The risk management method where you transfer the risk to another party is called:
A)Risk avoidance
B)Risk reduction
C)Risk assumption
D)Risk shifting
If a guest in your home slips and falls, what part of your homeowner's insurance policy would protect you from the risk of financial loss?
A)Personal Liability coverage
B)Personal property coverage
C)An endorsement for the specific incident
D)Specialized coverage for guest injuries
If you rent your residence, you should have renter's insurance because:
A)Your landlord probably does not have homeowner's insurance.
B)Your landlord's homeowner's insurance does not cover rental units.
C)Your belongings are not covered under the landlord's insurance, only the structure is covered.
D)Your landlord's coverage is usually minimal.
In settling homeowner's insurance claims, if you receive the full cost of repairing or replacing the items lost, the method is being used.
A)Fair market value
B)Endorsement value
C)Actual cash value
D)Replacement value
Which of the following would lead to a lower cost of Home insurance?
A)Having a brick home versus one made of wood.
B)Having a lower deductible
C)A more expensive home
D)Being in a high crime neighborhood
The automobile insurance coverage that protects against losses from physical injuries in a car accident is called:
A)Uninsured Motorist coverage
B)Medical Payments coverage
C)Bodily Injury Liability
D)Underinsured Motorist coverage
No-fault Insurance is when:
A)People who are not at fault pay for losses in an accident
B)Each party in an accident collects from their own insurance company regardless of who is at fault
C)People who are not at fault do not pay for losses in an accident
D)Each party's insurance pays for the other party in an accident
Which of the following factors will lower the cost of Auto insurance?
A)Having a higher deductible
B)Living in an urban area
C)Drivers under the age of 25
D)Drivers over the age of 70
A state program that requires insurance companies to cover drivers that would not be able to get insurance on their own because of poor driving record is called:
A)An endorsement
B)No-fault insurance
C)Assigned risk pool
D)Uninsured motorist insurance

Kapoor3eOnline Learning Center

Home > Chapter 8 > Chapter Quiz