Reference no: EM133055230

1. Modified no-fault insurance:

a. May allow the insurance company to decide whether to use no-fault or the traditional tort system

b. May use the traditional tort system for cases that are not as involved and revert to no-fault for serious injuries or death

c None of the choices are correct.

d. May allow the policy holder to decide whether to use no-fault or the traditional tort system

e. May use no-fault for cases that are not as involved and revert to the traditional tort system for serious injuries or death

2. Coverage of losses to you or your property directly is called:

a. None of the choices are correct.

b. Third-party coverage

c. Fourth-party coverage

d. First-party coverage

e. Second-party coverage

3. Which of the following is not an example of property and liability insurance?

a. Homeowner's insurance

b. Umbrella insurance

c. None of these are an example of property and liability insurance

d. All of these are examples of property and liability insurance

e. Liability to others

4. Which of the following homeowner's policies covers the most risk?

a. HO2

b. None of the choices are correct.

c. HO1

d. HO3

e. All of these cover equal risk

5. Which of the following is not part of an automobile insurance policy?

a. Damage

b. All of these are part of an automobile insurance policy

c. None of these are part of an automobile insurance policy

d. Medical

e. Liability

6. Which of the following is not offered by all three types of medical coverage?

a. A basic surgical policy to pay for the surgeon's costs, whether in or out of the hospital

b. All of these are offered by all three types of medical coverage

c. Nonsurgical costs whether in or out of the hospital

d. A basic hospital policy for hospital costs such as room, board and ancillary services

e. None of these are offered by all three types of medical coverage

7. Which of the following is not a type of hazard?

a. Moral hazard

b. None of these are type of hazard

c. Morale hazard

d. Physical hazard

e. All of these are types of hazards

8. Which of the following is used to set maximum reimbursement in the event of loss of an asset that you own equal to the value of the item?

a. Insurable interest

b. None of the choices are correct.

c. Indemnity

d. Screening of applicants

e. Segregation of applicants

9. Depreciation is not deducted:

a. When assets are valued for loss purposes on a replacement-cost basis

b. None of the choices are correct.

c. When assets are valued for loss purposes on either an actual cash value at the time of the loss or on a replacement-cost basis

d. When assets are valued for loss purposes on an actual cash value at the time of the loss basis

e. Depreciation is always deducted

10. A hazard is best defined as:

a. Uncertainty

b. The opposite of peril

c. None of the choices are correct.

d. All of the choices are correct.

e. An increase in the probability of peril.