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RISK 112 ( Ch.2)

Total questions: 21

Worksheet time: 11mins

Name
Class
Date
1.

One of the following excluded from third party liability coverage.

a)

Driving by any person has a valid driver's license.

b)

Damage to property belonging to a third party.

c)

Accidents taking place inside the area limit.

d)

Bodily injury to the insured.

2.

Third party liability coverage does not cover one of the following.

a)

Bodily injury to any third party outside of the insured vehicle.

b)

Fines and guarantees arising from the accident.

c)

Damage to property for the third party outside of the insured vehicle.

d)

Death to the third party.

3.

Which of the following is excluded from third party liability insurance coverage?

a)

Damage to property belonging to the third party.

b)

Driving by any person carries a valid driving license.

c)

Accidents taking place inside the area limit.

d)

Death or bodily injury to the insured.

4.

All the following represent an exclusions to the liability coverage EXCEPT?

a)

Intentional injury or damage.

b)

Bodily injury to an employee.

c)

Vehicles with four wheels.

d)

Vehicles used in the auto business.

5.

If an accident occurs in another state which provide higher liability limits, the PAP automatically provides the …………….. limits.

a)

Average.

b)

Less.

c)

Higher.

d)

Lower.

6.

In liability coverage, the premium does not depend on …………………..

a)

Living area of the insured.

b)

The insured vehicle value.

c)

Age and gender of the driver.

d)

Years of driving experience.

7.

Covers any property damage caused by the insured to a third person when the insured is at fault.

a)

Injury liability.

b)

Collision coverage.

c)

Property damage liability.

d)

Comprehensive coverage.

8.

Covers physical injury to anyone in the other vehicles involved in an accident, that the insured is at fault.

a)

Bodily injury liability.

b)

Full coverage.

c)

Comprehensive coverage.

d)

Property damage liability.

9.

The insurer may not renew a policy in all the following cases EXCEPT?

a)

If the insured files too many claims.

b)

If the insured lost his driver's license.

c)

If the insured pay the premium.

d)

If the insured provide misrepresents information.

10.

In …………………………. The premium amount doesn't depend on the vehicle value.

a)

Liability coverage.

b)

Collision coverage.

c)

Full coverage.

d)

Uninsured coverage.

11.

In motor insurance, liability coverage covers a bodily injury for the insured himself.

a)

True

b)

False

12.

Liability coverage excludes property owned by the insured.

a)

True

b)

False

13.

Motor insurance policy doesn't include the name of the third party.

a)

True

b)

False

14.

Liability coverage is the minimum insurance required from the insured according to the law.

a)

True

b)

False

15.

Under liability coverage, insurer can deny liability to indemnify a third party because the insured has committed a breach.

a)

True

b)

False

16.

The higher coverage limit, the more the company pays, but the higher premiums will be to obtain that coverage.

a)

True

b)

False

17.

Liability coverage doesn't cover any bodily injury or property damage for the policyholder himself or his family.

a)

True

b)

False

18.

Liability coverage applies to the named insured and any resident family member.

a)

True

b)

False

19.

Liability coverage doesn’t cover the insured damages, but it protects the insured financially in regard with others.

a)

True

b)

False

20.

Liability insurance is the minimum amount of insurance required by law.

a)

True

b)

False

21.

Atypical example of a ................... is a lawsuit against an insured driver who negligently caused an auto collision.

a)

Third-party coverage.

b)

Third-party claim.

c)

Comprehensive coverage.

d)

A first-party claim.