Chapter 20 Intro to business
Ali has automobile insurance with 100/300 bodily injury liability coverage. How much would her insurance company pay for injuries to one person? $1,000 $100,000 $300 $30,000
100,000
Name 6 factors insurance companies use to determine auto insurance premiums (cost).
Age accident record credit rating marital status academic standings miles driven yearly
Which of the following does NOT need to be recorded on an inventory of personal property? The brand name and description of each item The purchase price The date and place of the purchase An estimate of how often you use each item
An estimate of how often you use each item
With an assigned risk plan Insurance companies can refuse to sell insurance to all high-risk drivers The insured pay much lower premiums than in other types of plans Low-risk drivers are assigned high-risk drivers to tutor them in good driving practices Even high-risk drivers are able to obtain at least some automobile insurance
Even high-risk drivers are able to obtain at least some automobile insurance
Which of the following would NOT be considered personal property? Which of the following would NOT be considered personal property? An iPhone Kitchen Cabinets Furniture Clothing
Kitchen Cabinets
Assuming the same amount of coverage and deductibles, which of the following drivers is likely to pay the LEAST for auto insurance? Mike, a single 25-year-old who drives his two-year-old car about 50,000 miles every year on business Alexa, a single 32-year-old who drives a brand new luxury sports car Melissa, a married 40-year-old who drives a seven-year-old van about 4,000 miles every year for neighborhood errands Nick, a single 18-year-old who is now on his 3rd car (for which he paid $750) because he's already been involved in two wrecks
Melissa, a married 40-year-old who drives a seven-year-old van about 4,000 miles every year for neighborhood errands
How can you save money when purchasing homeowners insurance? Name 3 things that will give you a discount on your policy.
Nonsmokers Smoke detectors burglar alarms
What are the 2 main categories of auto insurance protection? Explain what is covered under each type.
Personal Injury lib Property damage coverage Bodily injury Property Damage Lib medical Collision uninsured Comprehensive property under insured
The MOST important factor that influences homeowners' insurance premiums is: Correct! The estimated danger of loss based on the insurance company's past experiences The value of the insured property The distance to the nearest fire department The insured's credit rating
The estimated danger of loss based on the insurance company's past experiences
Insurance that protects a car owner against financial loss resulting from a wreck or rollover is called: Underinsured Motorist Coverage Deductible Coverage Comprehensive Coverage Collision Coverage
collision
Auto insurance is very inexpensive, so you should always buy as much coverage as possible.
false
It is illegal for an insurance company to charge one individual higher premiums for auto insurance than another individual is charged.
false
Bodily injury liability on your auto insurance covers all of the following EXCEPT: Passengers riding with the policyholder Pedestrians The policyholder People in other cars
policyholder
Amanda's ten year old couch was destroyed in a fire. Her insurance company paid her the cost of buying a brand new couch. This indicates that Amanda had purchased: Depreciation insurance Replacement insurance Liability insurance Basic homeowner's insurance
replacement insurance
A renter's policy does not protect the actual dwelling. It covers only the person's property and personal liability risks.
true
All states have some type of financial responsibility law to protect the public from financial loss caused by drivers.
true
Property permanently attached to land, such as a house or garage, is called real property.
true
Some insurance companies will pay the current replacement value for property only if the property is insured for at least 80% of the replacement value.
true
