Question

Insurance coverage relies on 1. the law of large numbers, meaning Events that are statistically difficult to predict for a specific individual are more predictable for a large number of individuals b. Events that are statistically difficult to predict for a large number of individuals a. predictable are more individual. for an Insurers can statistically predict whether an individual will suffer a loss more accurately than they statistically predict whether a large number of individuals will suffer losses. d. C. can Insurers can adequately predict the losses expected for an individual, but are losses expected for large numbers of individuals predict the unable to Homeowners policies provide coverage for losses from which of the following? 2. Fire or other listed perils. b. Loss of use. a. Personal propertry All of the above. c. d. Httpsbla (1) QUES 4 https:/hlac VitalSource urde your Face Highlig Unttled doc. Which of the following 3. is not a category of property risk? Loss of property due to fire, wind, theft, or others hazards. Liability losses resulting from negligent Loss of value from economic obsolescence. Financial loss resulting from death or disability of a guest. a. b. of property. use C. d. Which of the following losses in not covered by a standard homeowners policy? 4. Personal liability. a. b. Theft. Medical payments. C. d. Personal vehicle. VialSource ttehlar QUES etps/hlac Untled doc Face Highlig Which of the following clauses states that full payment of damages 5. to structures under the homeowners policy will cost of the structure and is carried on be made only if the insurance equals 80 or more percent of the replacement the property at the time of the loss? Coinsurance clause. a. b. Inflation rider clause. Reinsurance clause. c. d. Replacement dlause The standard form of the homeowners policy excludes which of the following 6. Fire and other perils b. Animals, birds, and fish. a. Personal liability c. d. Theft. Brandon has a replacement cost homeowners policy. The value of the home is $450,000, and he carries $350,000 worth of insurance. How much would the insurance company owe him in the event of a $100,000 loss due to fire (without regard 7. to a deductible)? $80,000, a. b. $85,000. $97,222. C. d. $100,000 Mtpeblec hetpble Crele vnur https /blac m oues VitalSouece Unted doc Face Highlig Doug's stereo was stolen. The stereo cost $1.500 new but has a fair market value of $750. If Doug has a homeowners policy that covers losses for personal property for ACV, what amount is Doug entitled to recover? $600, b. $750. a. $1.500 The current retail price for a new d. replacement stereo. Homeowners policies have limits for items such às rare coins and jewelry, Which of the following should an insured homeowner consider obtaining if they have significant investments in these items 9. A personal liability insurance riders. b. A professional liability insurance riders. cA personal articles floater policy d An agreed to value separate policy a. Insurance Planning Chapter 8 Homework Questions What of the following is correct about the doctrine of subrogation? 10. It is used by insurance companies to avoid payment of claims directly to insured. It requires that a person who is injured or suffers loss by the negligence of another person to sue that person directly It is the right of an insurer to recover from another person any loss which it pays to its insured. The insured parties sue for their losses privately before making a claim under an insurance policy. a. b. C. d.

Answer 1

1. 6666 Insurance companies use the law of large numbers to estimate the losses a certain group of insureds may have in the future.The law of large numbers state that as the number of policyholders increases, the more confident the insurance company is its prediction will prove true.

Therefore answers is a) Events that are statistically difficult to predict for a specified idividual are more predictable for a large number of individuals

2. Answer d. As Homeowners Policies provide coverage losses from fire or other listed perils, loss of use, personal property etc

3. All mentioned in A, B and C are categories of property risks Except D.

Therefore answer is D i.e. Financial loss resulting from death or disability of a guest.

4. Answer is D medical Payments

Homeowners coverage provides financial protection against loss due to disasters, theft and accidents. Most standard policies include four essential types of coverage:

Coverage for the structure of your home

Coverage for your personal belongings

Liability Protection

Coverage for Additional Living Expenses