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EPF Exit Ticket Home Insurance

Quiz by Pa'Trice Day Owens

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10 questions
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  • Q1
    Insurance is frequently described as a method of "sharing the risk" because the:
    Risk of loss is shared with the government
    Risk of loss is shared with the insurance company sales person
    Insured shares the risk of loss with all the other policy holders
    nsured can share the risk by spreading the cost over a number of years
    30s
  • Q2
    Legal Financial responsibility to others is
    Risk
    Liability
    Negligence
    Credit
    30s
  • Q3
    Flood and Earthquake are standard (regular) features of homeowner's insurance.
    True
    False
    30s
  • Q4
    A person buys an expensive flat screen, plasma, theater-like television. The person has homeowner?s insurance. Why would it be appropriate to add a personal property floater to that insurance?
    To reduce the premium on the homeowner?s insurance.
    To cover the cost of replacement should the television get damaged or stolen.
    To show the insurance company a good faith investment has been made.
    To protect the person who owns the television from liability for damages.
    30s
  • Q5
    If your insurance policy has a low premium, then usually the deductible will be low.
    False
    True
    30s
  • Q6
    In insurance, anything that may possibly cause a loss is known as a
    Hazard
    Risk
    Peril
    Liability
    60s
  • Q7
    The method by which an insurance company payment is based on the full cost of repairing or replacing an item.
    Personal Property Floater
    Actual Cash Value
    Negligence
    Replacement value
    60s
  • Q8
    A person buys a homeowner's insurance policy with a $250 deductible, which means the person will
    have to pay the first $250 which will be deducted from the claim settlement paid by the insurance company.
    have to pay a quarterly premium of $250.
    not be responsible for the first $250 of the claimed damages.
    only receive payment from the insurance company of $250 for any single article damaged.
    60s
  • Q9
    Installing fire extinguishers, smoke detectors or security systems in your home is an example of
    Risk Shifting
    Risk Reduction
    Risk Assumption
    Risk Avoidance
    60s
  • Q10
    Renters insurance does not include coverage for
    personal property
    personal liability
    additional living expenses
    the building
    30s

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