POB Chap 20-4

Where a person lives affect the cost of automobile insurance.

• True

• False

Among the factors which determine homeowners' insurance premiums are the value of the property insured, the type of policy, and the credit rating of the insured.

• True

• False

Personal liability coverage covers claims from injuries to people or damage to property caused by you or your family.

• True

• False

Coinsurance is the sharing of medical expenses with another policyholder.

• True

• False

Disability income insurance usually pays a benefit of 90 or 95 percent of the insured's normal monthly income.

• True

• False

With replacement insurance, the insurance company actually pays for the depreciated value of an item.

• True

• False

If a person has a poor driving record, they will be unable to purchase automobile insurance.

• True

• False

Homeowners are able to buy insurance to protect their personal property; renters are not.

• True

• False

The longer you keep your permanent life insurance policy, the lower its cash value.

• True

• False

Real property includes such items as furniture and clothing.

• True

• False