Pers Finance 10

The uncertainties of direct and indirect losses to personal or real property due to fire, wind, accident, theft, etc., are called ____________ risks. property
Defective house wiring is an example of a hazard
Possible losses due to negligence resulting in bodily harm or property damage to others are called ____________ risks. liability
Starting a small business that may or may not succeed is an example of ___________ risk. speculative
The legal responsibility for the financial cost of another person’s losses or injuries is referred to as liability
If a homeowner leaves toys on stairs that results in injury to a delivery person, this may be ruled as negligence.
Negligence refers to failure to take ordinary and reasonable care.
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. vicarious
The additional living expenses component of a home insurance policy is designed to pay for temporary housing while your home is repaired.
Georgette Valentine has expensive photography equipment for use in her hobby. Which of the following coverages would pay for damage or theft of this equipment? a personal property floater
The ____________ coverage of a home insurance policy would cover accidental damage to another person’s property by a member of your family. personal liability
An umbrella policy is designed to cover major personal liability suits.
Most home insurance policies provide coverage for medical payments.
Renter’s insurance would include coverage for personal
Which of the following are not covered by renter’s insurance? fire damage of the building’s roof
Which form of homeowner’s policy provides coverage for the most risks? special
Kelly and Bob Walton recently purchased a new home and desire coverage for all causes of loss or damage except those specially excluded by the policy. They should obtain the ____________ form of homeowner’s policy. special
Tara Guest owns a home in Edmond, Oklahoma. She is worried about a tornado causing damage to her home. The tornado is an example of: A peril
Your home insurance provides for replacement value for personal property losses. A microwave is stolen. It cost $300 two years ago and has an expected life of six years. A comparable microwave costs $400 today. What amount will the insurance company pay? $400
Which of the following insurance policy provisions requires that the insured must pay for part of the loss of a claim if the property is not insured for the specified percentage of replacement value? coinsurance clause
The ____________ method to settle claims is based on the current replacement cost of a damaged or lost item less depreciation. actual cash value
Home insurance costs are affected most directly by the number of claims in an area.
Your home insurance policy has a $250 deductible. If a small fire causes $600 damage to your home, what amount of the claim would the insurance company pay? $350
The purpose of financial responsibility laws is to protect the public from financial losses due to auto accidents.
The 100 in 100/300/50 refers to the limit for bodily injury claims that can be paid to one person.
Henry Edwards was injured in an accident caused by another driver who did not have insurance. Henry’s medical expenses would be covered by uninsured motorists protection.
Which of the following is a system in which drivers involved in an accident collect medical expenses, lost wages, and related injury costs from their own insurance company? no-fault insurance
Comprehensive coverage would cover financial losses due to damage to your car caused by wind or hail.
Thad Joslin was judged at fault in an automobile accident. Three others were awarded damages of $150,000, $75,000, and $75,000. Thad has 100/300 bodily injury liability coverage. What amount, if any, would not be covered by his insurance? $50,000
Your geographic location is a major factor in determining the ____________ used to calculate your automobile insurance premiums. rating territory
Wind damage occurs to your car costing $800 to repair. If you have a $100 deductible for collision and full coverage for comprehensive, what portion of the claim will the insurance company pay? $800
Which of the following refers to a category based on age, sex, marital status, and driving habits that is used to set automobile insurance premiums? driver classification
Which of the following factors is used to determine a person’s driver classification? age
The purpose of an assigned risk pool is to provide insurance for poor drivers.
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 an assigned risk pool.

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