1. All property insurance companies require you to show the following when making a claim:
a. Proof of loss
b. Personal property inventory
c. Values at
... [Show More] the time of inventory
d. All of the above.
____ 2. The asset most likely to be specifically itemized in a property insurance endorsement is
a. sofa.
b. clothing.
c. jewelry.
d. garden equipment.
e. all of these.
____ 3. Your standard HO policy will not include coverage for damage done by
a. flood.
b. windstorm.
c. falling objects.
d. wind.
e. theft.
____ 4. Which Homeowners' policy is best suited for a resident of a rented apartment to cover that person's personal
property?
a. HO-3
b. HO-4
c. HO-5
d. HO-8
e. A Homeowners' policy will not apply since the real estate involved is not owned by the
insured.
____ 5. Negligence results when a person
a. is not insured.
b. acts as a "reasonable person."
c. fails to act as a "reasonable person."
d. admits it.
e. is more than 18 years old.
____ 6. Donna, who is single and 30-years-old, has received several speeding tickets recently and was shocked by the
effect on her auto insurance. Donna drives a 2002 Pontiac Firebird, is currently not covered by health
insurance, has an emergency fund of $25,000, an income of $100,000 per year, and an investment portfolio of
$230,000. She is trying to reduce the price of her auto insurance. Which of the following actions is most
likely to be advisable.
a. lower her liability limits to the minimum allowed in her state
b. drop her medical payments coverage
c. raise her deductible from $250 to $1,000
d. drop her comprehensive coverage and keep collision-only
e. drop everything from her policy except the liability insurance
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____ 7. Generally, actual cash value is defined as
a. replacement cost.
b. original purchase price.
c. market value.
d. purchase cost minus depreciation.
e. replacement cost minus depreciation.
____ 8. The principle of indemnity would prevent:
a. the act of one person from being imputed to another.
b. an insured from collecting more than he lost.
c. a negligent third party from being held liable for damages if the injured party was insured.
d. a significant amount of loss control activity.
e. an insurer from ever waiving it's right to subrogation.
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