RISK 112 (Ch.1)

When people buy auto insurance, they ……… part of the financial loss to the insurance company.  

• Transfer

• Retain

• Keep

• Memorize

………………. Suitable for vehicles used for the commercial purposes.

• Commercial motor insurance policy

• Private motor insurance policy

• Motorcycles insurance policy

• Marine insurance policy

Which of the following considered a nonowner auto or trailer used temporarily because of mechanical breakdown, repair, servicing, loss, or destruction of a covered vehicle.

• Owned vehicle

• Temporary vehicle

• Unreplaced vehicle

• Unsubstituted vehicle

A person related to the insured by blood, marriage or adoption who is a resident of household, including a  ward or foster child.

• Policyholder and insured

• Insurance Company and Suppliers

• Insurance Company and insurer

• Family member

The amount deducted from the policyholder for the initial portion of the loss ……….. the insurance company pays compensation.

• With

• Before

• After

• At same time

An auto insurance is arrangement between a …………..  and …………to provide protection against  risk from auto accidents.

• Policyholder and insured

• Insurance Company and insurer

• Insurance Company and Suppliers

• Policyholder and insurer

At fault means Doing an accident intentionally

• TRUE

• FALSE

A peril is defined as the cause of the loss.

• TRUE

• FALSE

In personal auto policy, liability coverage covers vehicles used in the business

• TRUE

• FALSE

Purpose of Auto Insurance is to help a policyholder limit  financial loss when an auto accident occurs.

• TRUE

• FALSE