FREE RIBO Insurance Fundamentals Test 3
Ben purchased fire insurance on his antique desk. While the desk was being moved, it was damaged. As "damage in transit" was not an insured peril, Ben set fire to the damaged desk. The desk was completely destroyed and Ben collected the insured value of the desk from his fire insurer. This scenario illustrates:
To drive a vehicle in the state of Virginia, you MUST have of which of the following types of insurance?
In order to drive a vehicle in the state of Virginia, it is mandatory to have liability insurance. Liability insurance provides coverage for damages or injuries caused to other people or their property in an accident where the insured driver is at fault. This type of insurance ensures that the driver is financially responsible for any harm they may cause while driving.
When an earthquake occurred in California, a studio was filming a number of movies. In addition to the physical damage the studio sustained, the studio was forced to delay or cancel release of some films. The profits lost because of delay or cancellation illustrated:
Which statement is true with regard to risk and insurance?
I. Most speculative risk can be insured.
II. Insurance is a form of risk transfer.
The probability of drawing an "ace" from a thoroughly shuffled deck of playing cards is one-thirteenth. This type of probability is known as:
Which of the following is NOT an identified type of insurance?
Education is not typically considered a type of insurance. Property insurance covers damage or loss to property, automobile insurance covers damage or loss to vehicles, and health insurance covers medical expenses. However, education is not typically associated with insurance as it is not a tangible asset that can be insured against damage or loss.
Beth was late for work. As she drove around a curve, she hit a patch of oil that had been spilled on the road. She slid across the road and hit a guard rail. Beth was not hurt; however, her car was severely damaged. The presence of oil on the road is best described as a:
Homeowner's Insurance covers all EXCEPT?
Homeowner's insurance typically provides coverage for various risks and damages to a home and its contents. Theft and vandalism coverage, hurricane coverage, and liability coverage are all commonly included in a standard homeowner's insurance policy. However, party coverage is not typically covered by homeowner's insurance. This is because parties can involve a higher risk of accidents, property damage, and liability claims, which may require additional specialized insurance coverage. Therefore, the correct answer is party coverage.
It is better to need and not have insurance !
Having insurance is always beneficial as it provides financial protection in case of unexpected events or emergencies. It ensures that individuals or businesses are not left with a large financial burden. Therefore, it is not better to need insurance and not have it, as it leaves one vulnerable to potential financial hardships.
For automobile insurance...you pay all EXCEPT which of the following
Automobile insurance includes various costs that policyholders are responsible for. These costs typically include the deductible, premium, and any additional fees or charges. However, the state inspection cost is not typically covered by automobile insurance. State inspections are typically required by law to ensure that vehicles meet certain safety and emissions standards, and the cost of these inspections is typically the responsibility of the vehicle owner rather than the insurance company.
Your finance history (credit report) can impact the rate or amount you pay for automobile insurance?
Your finance history, specifically your credit report, can indeed impact the rate or amount you pay for automobile insurance. Insurance companies often use credit-based insurance scores, which are derived from information in your credit report, to determine the likelihood of you filing a claim. Studies have shown that individuals with lower credit scores tend to file more claims, leading insurance companies to charge higher premiums to those with poor credit. Therefore, it is important to maintain a good credit history to potentially secure lower insurance rates.