Financial Stewardship Ch.8

All of the following are acceptable types of documentation for a household inventory except

A listing of items and their details in your memory

Amber had permission from Bradley to borrow his car to run some errands. Unfortunately, while Amber was driving, she looked down to change songs on her iPod and sideswiped a car and hit a bicyclist. Based on her experience, which of the following would be true?

Amber's insurance policy should cover any property damage claims since she was driving Bradley's car with his permission.

Medical payments coverage applies to medical expenses of

Anyone in your vehicle, including you

Homeowner's insurance covers all of the following except

Automobiles or thief of jewelry valued at $25,000

Homeowner's insurance policies includes coverage for all of the following except

Business property

Henry was driving at dusk and hit a deer running across the road. His damage would be covered under

Comprehensive physical damage

Samantha was driving on the highway during a storm and hail dented her car. This damage would be covered under her

Comprehensive physical damage coverage

Zachary lived in a neighborhood that was known for gang activity. One day, he noticed that his car had been vandalized. This damage would be covered under his

Comprehensive physical damage coverage

Barbara left a skateboard on her front steps. Her neighbor tripped on the skateboard and was injured. The skateboard was a

Hazard

The main goal when setting insurance goals is to

Minimize personal, property, and liability risks

Barbara left a skateboard on her front steps. Her neighbor tripped on the skateboard and was injured. The fact that Barbara didn't put away the skateboard is called

Negligence

The failure to take ordinary or reasonable care to prevent accidents from happening is called

Negligence

Paul was driving his kids to a piano lesson in a 2005 minivan. While driving, he was hit by an uninsured motorist. Although Paul and his kids had only minor injuries, their vehicle was totaled. Based on this information, which of the following is correct?

Paul's uninsured motorist's protection should cover medical expenses for Paul and his kids

Anything that may possibly cause a loss is called a

Peril

Barbara left a skateboard on her front steps. A windstorm swept the skateboard up and through her window. The windstorm was a

Peril

63. Insurance that covers valuable items, such as an expensive harp, is called

Personal property floater

Personal property insurance covers

Personal property items up to 55-75% of the insured value of the home

What is the fee that a policyholder pays when an insurance company agrees to take on the risk?

Premium

Madeline had a severe allergy attack and crashed her car into a telephone pole while sneezing. The damage to the telephone pole would be covered under Madeline's

Property damage liability coverage

Patrick has an old beater car and wants to keep his insurance costs down. In order to minimize the financial impact of an accident he may cause he should, at a minimum, carry which type of insurance?

Property damage liability coverage

Which of the following is NOT correct about renter's insurance?

Renter's insurance covers the building and other structures on the site

If you choose to take responsibility for negative results of a risk, you are using

Risk assumption

If you choose to avoid the risk of a traffic accident by not driving to work, you are using

Risk avoidance

If you choose to wear your seatbelt, you are using

Risk reduction

If you choose to insure your home or your vehicle, you are using

Risk shifting

Which of the following is not correct?

The cost and number of claims you have should not affect your premium.

Liability is defined as

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

Sandra is contacting several insurance companies to compare coverage for her home. Which of the following should NOT affect her premium?

The location of the employer

A policy that provides supplemental your basic personal liability coverage is called a(n)

Umbrella policy

Various states are trying to reduce the time and cost of settling vehicle injury cases. One of those alternatives is

Using the no-fault system