Lesson 9 Review

Front

Peter backed into a lamppost and caused $4,300 worth of damage. He has a collision policy with a $1,000 deductible. How much will the insurance company pay?

Back

$3,300

Front

Bob has an auto accident caused by his negligence. He has 100/300/100 liability insurance. The three people injured in the accident sued. One person was awarded $140,000, and the other two were awarded $75,000 each. How much does the insurance company pay (leaving to you pay the rest)?

Back

$250,000

Answer explanation

With liability insurance of 100/300/100 liability, each person is limited to $100,000 from insurance so one person would get $100,000, and the other two would get $75,000 each ($150,000) for a total of $250,000 from your insurance company you must pay the remaining $40,000.

Front

Michael Scott has 100/275/50 liability insurance. Does liability insurance cover Michael or the other guy?

Back

Other Guy

Front

In Michael Scott's 100/275/50 liability insurance, what does the 50 represent?

Back

Property Damage

Front

What insurance will cover the costs of replacing a storefront damaged by Dwight Schrute during an ice storm, which will cost $24,000, and the $1,450 damage to a fence?

Back

Property Damage Liability

Front

What type of insurance covers a lawsuit for $3,000,000 awarded to a professional soccer player who can no longer play due to injuries sustained in a store owned by Dwight Schrute, and how much will the insurance company pay? Options: Property Damage, Bodily Injury Liability, Personal Injury Protection

Back

Bodily Injury Liability: $100,000

Front

If a rock hits your windshield, what insurance pays to fix it?

Back

Comprehensive

Front

Pam bought a car insurance policy with an annual premium of $1000. There is a $10 annual surcharge because she pays semi-annually. What is her semi-annual premium payment?

Back

$505

Front

The portion of the auto insurance policy that covers damage done to a car by acts of nature, vandalism, theft, etc is called:

Back

Comprehensive

Front

Is a car an investment?

Back

No

Answer explanation

A car is NOT an investment as it DEPRECIATES in values instead of APRECIATES