Ch 8 Review

The legal responsibility for the financial cost of another person's losses or injuries is known as

Liability

With the replacement value method of insurance coverage, you receive:

The full cost of repairing or replacing a damaged or lost item

The main factors that influence premiums for automobile insurance are:

Vehicle type, rating territory, and driver classification

Negligence is failure to take reasonable or ordinary ____ in a situation.

care

____ Physical Damage Insurance coverage protects you if your vehicle is damaged in a non accident situation.

comprehensive

Increasing your ____ lowers your premium

deductible

Insurance is a protection against possible ____ loss, and provides protection against many ____.

financial, risks

3 goals of insurance include:

minimizing property risks minimizing personal risks minimizing liability risks

A ____ is anything that may possible cause loss.

peril

Your insurance protection for your home should be based on the amount needed to ____ or repair your house and not the amount you originally paid for the home.

replace