Unit 4 Quiz insurance

A financial loss resulting directly from a loss to property, such as a house fire or a diamond ring being stolen, is called

• A direct loss

• an indirect loss

• a consequential loss

• an expense loss

An insured owns a $200,000 home and insures it for $100,000. If the insured's home was completely destroyed by a fire, how much money would the insurance company pay if the insured has a policy that requires a minimum of 80% coverage?

• $100,000

• $125,000

• $160,00

• $200,000

which peril policy insures a property against all perils specifically listed in the policy?

• Named peril policy

• specific peril policy

• open peril policy

• listed peril policy

When a semi truck hit Greg's house, he and his family had to stay in a nearby hotel for two weeks while repairs were being made. The hotel bill came to $1,000, and the cost of food came to $415. What was the indirect loss?

• the semi truck

• the house

• the hotel bill and cost of food

• the repairs

The term that describes the absences of both people and property from the premises is

• vacant

• unoccupied

• abandoned

• valuation

Which of the following coverages insures against all risks of direct physical loss that are not specifically excluded in the policy?

• broad perils

• special perils

• basic perils

• direct perils

Timothy has an antique boat, and it was recently damaged while on a fishing trip. The insurance company agreed to repair the boat with less expensive, working materials. This is an example of which type of claim settlement?

• market value

• repair cost

• replacement cost

• functional replacement cost

Actual cash value is the replacement cost of the property minus

• the deprecation

• the repair cost

• the market value

• the agreed value

Which of the following terms describes a single limit of insurance that applies to all items of that property type?

• personal

• blanket

• specific

• Scheduled

Which of the following perils is extended coverage insured by basic?

• wind

• falling objects

• freezing of plumbing

• weight of ice, snow, or sleet