Chapter 10 – Property and Motor Vehicle Insurance
55. (p. 335) ____________ protects you against financial loss when your car damages the
property of others.
56. (p. 335) The 25 in 50/100/25 refers to ____________ coverage.
57. (p. 335) Which one of the following types of coverage would pay for damage to your
automobile in an accident for which you were at fault?
Chapter 10 – Property and Motor Vehicle Insurance
58. (p. 336) Comprehensive coverage would cover financial losses due to:
59. (p. 335) ____________ coverage would pay for damage to your vehicle caused by an
accident when another driver with insurance was legally at fault.
60. (p. 335) Thad Joslin was judged at fault in an automobile accident. Three others were
awarded damages of $150,000, $75,000, and $75,000. Thad has 100/300 bodily injury
liability coverage. What amount, if any, would not be covered by his insurance?
Chapter 10 – Property and Motor Vehicle Insurance
61. (p. 338) Your geographic location is a major factor in determining the ____________ used to
calculate your automobile insurance premiums.
62. (p. 337) Wind damage occurs to your car costing $800 to repair. If you have a $100
deductible for collision and full coverage for comprehensive, what portion of the claim will
63. (p. 338) Which one of the following refers to a category based on age, sex, marital status,
and driving habits that is used to set automobile insurance premiums?
Chapter 10 – Property and Motor Vehicle Insurance
64. (p. 338) Which one of the following factors is used to determine a person’s driver
classification?
65. (p. 339) The purpose of an assigned risk pool is to:
66. (p. 339) A system that requires each insurance company operating in a state to provide
coverage to individuals who have been unable to obtain other insurance is referred to as:
Chapter 10 – Property and Motor Vehicle Insurance
67. (p. 317) Tara Guest owns a home in Edmond, Oklahoma. She is worried about a tornado
causing damage to her home. The tornado is an example of a:
68. (p. 317) Susan Bize owns a home in Edmond, Oklahoma. She has a coffee maker in the
home that has been recalled because it is likely to start fires. The coffee maker is an example
of a:
69. (p. 317) Joan Stone owns a home in Edmond, Oklahoma. She is worried her property might
be damaged due to some unforeseen event. This worry about a loss is an example of a:
Chapter 10 – Property and Motor Vehicle Insurance
70. (p. 317) Nick Rodr owns a home in Edmond, Oklahoma and pays $665 per year in insurance
on the home. The $665 is an example of a:
71. (p. 318) Kevin Brown rides his bicycle to work so that he doesn’t have to worry about getting
in a car accident. How is Kevin managing his risk?
72. (p. 318) Larry Foster has bought a car with front and side airbags and antilock brakes. How
is Larry managing his risk?
Chapter 10 – Property and Motor Vehicle Insurance
73. (p. 318) Peter Jacobs has set aside $5,000 in case he has an accident in his 1980 Honda
Civic. He does not have collision insurance on this car. How is Peter managing his risk?
74. (p. 319) Robert Plant pays a premium each month to State Farm Insurance for automobile
insurance on his 2003 Dodge Ram pick-up truck. How is Robert managing his risk?
75. (p. 324) Zachary Harris owns a home in Elk City. There was a bad thunderstorm and his
gazebo was hit by lightening and burned to the ground. What part of his homeowner’s
insurance policy would cover this loss?
Chapter 10 – Property and Motor Vehicle Insurance
76. (p. 324) William Bennett owns a home in Oviedo, Florida. There was a fire in his home and
he and his family had to move to a motel until his home could be fixed. What part of his
homeowner’s insurance policy would cover the cost of the motel?
77. (p. 325) Albert Finney owns a home in Pompano Beach, Florida. His house is broken into
and the burglar steals his computer, his big screen TV, his stereo equipment, and his toaster.
What part of his homeowner’s insurance would cover this loss?
78. (p. 325-326) Brett Johnson owns a home in Yukon, Oklahoma. A babysitter he hires breaks
her leg when she trips over the dog. What part of his homeowner’s insurance would cover this
loss?
Chapter 10 – Property and Motor Vehicle Insurance
79. (p. 327) Craig Brown owns a home in San Francisco, California. There is a major earthquake
and his house is damaged by the earthquake. What type of insurance would he have to have to
cover this loss?
80. (p. 332) David Bowers must show a card from his automobile insurance company when he
registers his car in the state of Oklahoma each year. Which of the following types of laws is
the reason he must show this card each year?
81. (p. 334) Evan McWilliams accidentally collided with a car driven by Francis Sullivan. It was
Evan’s fault and Francis was seriously injured and had to spend the night in the hospital. What
part of Evan’s automobile insurance policy would cover Francis’s injuries?
Chapter 10 – Property and Motor Vehicle Insurance
82. (p. 334) Ginger Simpson ran off the road and hit a bridge support. She was seriously injured
and spent three days in the hospital. What part of Ginger’s automobile insurance policy would
cover Ginger’s injuries?
83. (p. 335) Hermione Granger borrowed her best friend’s car and was in an accident. She was at
fault. The car was totaled. What part of Hermione’s automobile insurance policy would cover
the damage to her friend’s car?
84. (p. 335) Georgia Owen was in an accident in which her car was totaled. What part of
Georgia’s automobile insurance would cover the damage to her car?
Chapter 10 – Property and Motor Vehicle Insurance
85. (p. 336) Kyle Burroughs left his car parked on the street all night. When he came out in the
morning all four of his tires had been slashed by vandals. What part of Kyle’s automobile
insurance would cover this damage?
86. (p. 338) Which one of the following would be an example of the driver classification
category that determines insurance rates?
87. (p. 338) Which one of the following would be an example of a rating territory that helps
determine insurance rates?
Chapter 10 – Property and Motor Vehicle Insurance
88. (p. 340) Which of the following might qualify Amy Farmer for a premium discount on her
automobile insurance?
89. (p. 325) Which one of the following would not be considered personal property by a
homeowner’s insurance policy?
90. (p. 331) Your home insurance policy has a $500 deductible. If a windstorm causes $2,000
damage to your home, what amount of the claim would the insurance company pay?
Chapter 10 – Property and Motor Vehicle Insurance
91. (p. 327) What type of coverage in a home insurance policy is designed to pay for legal action
taken against a homeowner who may be legally responsible for injury or property damage of
others?
92. (p. 334) The 500 in 200/500/50 refers to:
93. (p. 318) Personal risks, property risks, and liability risks are types of ________ risk.
Chapter 10 – Property and Motor Vehicle Insurance
94. (p. 323) A parent may be held responsible for the actions of their child if those actions cause
financial or physical harm to others. This is known as:
95. (p. 325) Which of the following would not be considered personal property under a typical
homeowner’s insurance policy?
96. (p. 336) _________ coverage protects your automobile from risks such as glass breakage,
falling objects, vandalism, or damage caused by hitting an animal.
Chapter 10 – Property and Motor Vehicle Insurance
97. (p. 339) Which of the following is not something you should do when you are involved in an
automobile accident?
98. (p. 326) What type of personal liability coverage is also called a personal catastrophe
policy?
99. (p. 324-327) What coverages are commonly included in a homeowner’s insurance policy?
Chapter 10 – Property and Motor Vehicle Insurance
100. (p. 330-331) What factors affect the cost of home insurance?
101. (p. 333-334) Which type of automobile insurance is usually considered to be most
important?
102. (p. 337-339) A friend wants to understand what affects the cost of auto insurance. Explain the
factors used to determine the automobile insurance premiums a person pays.
Chapter 10 – Property and Motor Vehicle Insurance
103. (p. 323) Explain the difference between strict and vicarious liability. Provide examples.
104. (p. 325-328) George and Error! Reference source not found. rent a condominium in an
area known for litigious residents and high cost judgments. George has an extensive stamp
collection and Martha has expensive photographic equipment. What kind of insurance would
you recommend for a couple in their living situation?
105. (p. 339) You are backing out of your driveway, late for a meeting. A short mental lapse and
BANGyou hit a post at the end of your driveway. The damage seems minor. What
questions should ask when trying to decide whether or not to report the incident to your
insurance company?
Questions that you would want to consider: Are you required to file all damages? Was
someone else involved? How much is your deductible? What recent claims have you have?
What is the extent of the damage? Was property belonging to anyone else involved?