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Multiple Choice Quiz
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1

Vicarious liability occurs when a person can be held accountable for the actions of another person.
A)True.
B)False.
2

It is not important to shop around for a homeowner's insurance company. All companies charge the same rate for homeowner's insurance.
A)True.
B)False.
3

One way to manage your risk is to avoid risk. However, this is not always practical.
A)True.
B)False.
4

While more than 9 out of 10 homeowners have homeowner's insurance, fewer than 4 out of 10 renters are covered.
A)True.
B)False.
5

The little boy down the street is visiting and falls down the stairs in your home. He has a broken arm and needs 15 stitches in a cut on his head. Which part of your homeowner's insurance policy should cover the cost of his medical treatments?
A)Building and other structures coverage
B)Personal property coverage
C)Additional living expenses coverage
D)Personal liability and related coverage
E)This would not be covered by your homeowner's insurance policy.
6

David Black is in a car accident with another vehicle and it is his fault. Which part of your automobile policy would most likely cover the cost of damages to David's car?
A)Bodily injury liability
B)Medical payments coverage
C)Property damage liability
D)Collision
E)None of the above
7

Brad Duvall gets married and finds that after he gets married his insurance premiums drop by $300 per year. Which of the following automobile insurance factors is most likely the reason for the decrease?
A)Automobile type
B)Rating territory
C)Driver classification
D)Assigned risk pool
E)None of the above
8

___________ is the cause of a possible loss.
A)Risk
B)Insurance
C)Peril
D)Hazard
E)None of the above
9

___________ is the failure to take ordinary or reasonable care in a particular situation.
A)Liability
B)Property damage
C)Negligence
D)Insurance
E)None of the above
10

___________ is an insurance claim settlement method in which the insured receives the full cost of repairing or replacing a damaged or lost item.
A)Actual cash value
B)Replacement value
C)Subrogation
D)Medical payment coverage
E)None of the above





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