GENERAL BUSINESS, CHAPTER 33

1.

1 point

Insurance coverage that protects you from claims resulting from injuries or deaths for which you are found to be at fault is

personal injury and property damage coverage

bodily injury liability insurance

medical payments and collision insurance coverage

automobile liability insurance

2.

1 point

Medical payments protection provides medical coverage for

policyholders while riding in their own car

policyholders while riding in someone else’s car

guest riding in the insured’s car

all of the above

3.

1 point

Car owners can buy package policies that include most or all of the necessary automobile insurance coverages.

True

False

4.

1 point

The highest automobile insurance premiums are paid by drivers in the 16-21 year old age group.

True

False

5.

1 point

Insurance that protects the insured against almost all damage losses except those caused from a collision or from the car turning over is

none of the above

property damage liability

collision insurance

comprehensive insurance

6.

1 point

Collision insurance covers

injuries to the policyholder and the policyholder’s family

damage to the property of others

damage to the policyholder’s car from a collision with another car or object

injuries to people other than the policyholder

7.

1 point

Ohio law states that the minimum coverage for bodily injury liability coverage is

15,000/30,000

12,500/25,000

7500

5,000/10,000

8.

1 point

Because of extremely bad accident records, some drivers are unable to buy automobile insurance in the normal fashion.

True

False

9.

1 point

Auto insurance that provides coverage to high-risk drivers who are unable to purchase insurance in the normal fashion is

assigned-risk plan

insurance laws

financial responsibility laws

compulsory insurance laws

10.

1 point

The two major categories of automobile insurance are

personal injury and property damage coverage

no-fault and assigned-risk insurance

automobile liability insurance

medical payments and collision insurance coverage

11.

1 point

Collision coverage provides for payment of damages up to

the current value of the car

the purchase price of the car when you bought it

the price of a new car similar to the car damaged

all the above are true

none the above are true

12.

1 point

Collision coverage pays for the damages to the other person’s property if the insured damages their property and the insured is at fault.

True

False

13.

1 point

This law provides that if you cause an accident and cannot pay for the damages either through insurance, your savings, or the sale of property, your driver’s license will be suspended or taken away.

compulsory insurance law

good samaritan law

manatory insurance law

no-fault insurance law

14.

1 point

Automobile insurance costs are not affected by the type of car you insure.

True

False

15.

1 point

Larger deductible amounts will increase the premium paid by the policyholder.

True

False

16.

1 point

This coverage provides financial protection from injuries caused by hit-and-run drivers (drivers that have not purchased insurance).

comprehensive physical damage coverage

uninsured/underinsured coverage

other than collision coverage

uninsurable personal injury coverge

17.

1 point

Under these laws, people injured in automobile accidents must collect for their financial losses from their own insurance companies no matter who is at fault.

assigned risk insurance laws

compulsory insurance laws

financial responsibility laws

no-fault insurance laws

18.

1 point

The general term used to describe insurance that you buy to protect yourself against financial loss if you injure someone else or damage someone else’s property in an automobile accident

collision insurance and comprehensive coverage

automobile liability insurance

no-fault and assigned-risk insurance

medical payment and collision insurance coverage

19.

1 point

Most insurance companies offer a discount on automobile insurance to young drivers if they are good students or if they have completed an approved driver education course.

True

False

20.

1 point

Comprehensive coverage protects you against financial loss if your car is stolen or damaged by fire, tornado, or windstorm.

True

False

21.

1 point

The cost of insurance is usually lower when one of the drivers in the insured’s family is under age 20.

True

False

22.

1 point

Laws that require you to carry certain types of automobile insurance before your car can be licensed are

financial responsibility laws

compulsory insurance laws

assigned-risk plans

insurance laws

23.

1 point

The part of an insurance contract that says the car owner agrees to pay the first $100 of damages to his or her car and the insurance company will pay the remainder.

claim

deductible

premium

self-insurance

24.

1 point

Automobile liability insurance protects you against financial loss if you injure someone else or damage someone else’s property in an automobile accident.

True

False

25.

1 point

Automobile coverage that protects you against claims if your car damages someone else’s property and you are at fault is

comprehensive physical damage coverage

collision insurance coverage

property damage liability coverage

medical payments protection coverage