finance chapter 10

A situation in which one person is held responsible for the actions of another is: – Property damage liability – Vicarious liability – Comprehensive coverage – Negligence Vicarious liability
Renter’s property insurance would include coverage for: – Personal belongings. – Structures attached to the main building. – Business related property. – Damages caused by a flood. Personal belongings.
Driver classification includes information on a person’s ________ and is used to set auto insurance rates.- type of automobile – property value – driving habits – place of residence driving habits
Refer to the FAQs reviewed during the web work. Which of the following would NOT typically be associated with a high risk driver? – A young driver with no record. – A 35 year old pizza delivery man. – The driver of a Honda Civic. – Someone with a bad credit score. The driver of a Honda Civic.
Refer to the FAQs reviewed during the web work. According to an Allstate spokesman, how much can Allstate policy holders save by bundling their auto and homeowners insurance?- Up to 20%. – Up to 25% – Up to 30% – Up to 15% Up to 30%
A homeowner was robbed and lost $3,500 in jewelry and $3,800 in silverware. The homeowner’s policy covers up to $500 of losses for jewelry and up to $1,000 in losses for the silverware with no deductible. How much is homeowner’s recovery from the insurance company? – $2,000 – $1,500 – $5,800 – $7,300 $1,500
What amount would a person with actual cash value coverage receive for four year old furniture that was destroyed by a fire? Assume the furniture has a $4,000 replacement cost today and an estimated life of 10 years.- $2,800 – $1,600 – $2,400 – $4,000 $2,400
A driver has 25/50/10 auto coverage. He/she is in an accident (and at fault) resulting in two bodily injury claims of $65,000 each. How much must the driver pay of the $130,000 in claims? – $0 – $30,000- $50,000 – $80,000 – $70,000 $80,000
A driver has 50/100/15 auto coverage. He/she is in an accident (and at fault) resulting in $10,000 of damage to a parked car and $20,000 damage to a store. How much must the driver pay of the total claims? – $10,000 – $0 – $5,000 – $15,000 – $30,000 $15,000
What is the definition of strict liability? – Legal responsibility for the financial cost of another person’s losses or injuries. – A situation in which a person is held responsible for intentional or unintentional actions. – Failure to take ordinary or reasonable care in a situation. – A situation in which a person is held legally responsible for the actions of another person. A situation in which a person is held responsible for intentional or unintentional actions.

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