Insurance and risk management Answer as many as possible 16-26 Thank you ! 16.) In addition to covering liability for bodily injury or property damage, home-based business coverage can also cover: a. personal belongings not used for business c. slander, libel, and copyright infringement b. automobiles used for business and personal use d. personal medical services 17. An umbrella liability policy often accomplishes each of the following purposes EXCEPT: a. It provides excess coverage over underlying insurance for a broad range of exposures. c. It provides coverage for an exposure not covered by or excluded from an underlying policy. b. It provides replacement coverage for underlying insurance that is reduced or exhausted by loss. d. It provides excess coverage over underlying insurance against highly specific exposures chosen by the insured. 18. All of the following are advantages of life insurance except: a. Guaranteed payout b. Proceeds not probated c. Cost of coverage reduces disposable income d. Generally, not subject to federal income tax 19. Which of the following is not a standard provision in a typical life insurance policy? a. a provision explaining the insured's right to assign the policy b. a provision permitting the insurer to cancel the policy at any time if the insured individual changes jobs c. a provision describing alternative settlement options that may be elected for payment of death proceeds d. a provision explaining the policyowner's right to borrow cash values 20. Insurance companies base their mortality assumptions on: a. the experience of large groups of people b. published mortality results of other large life insurance companies c. federally mandated mortality tables published by the Treasury Department d. the individual assumptions made by actuaries employed by the company 21. Dwelling Property Forms provide coverage that is often purchased by: a. tenants b. insureds who work from home c. landlords d. business owners 22. Which of the following vehicles does not qualify for automobile insurance? a. A pickup truck c. a vintage car b. a motorcycle d. a minivan 23. Liability insurance states that: a. the insurer will pay damages for injury or property damage caused by the insured c. the insurer will hold the insured liable for damages caused by the insured but will pay for medical costs for the insured b. the insurer will pay damages for injury or property damage caused by a third party to the insured d. the insurer will pay damages for property damage but not injury caused by the insured 24. Uninsured motorist coverage is defined as: a. insurance covering damages caused when the insured injures an uninsured driver c. insurance covering damages incurred on the insured by an uninsured driver b. insurance for those who do not own cars but have occasion to drive in some circumstances d. insurance covering physical damage to a vehicle only, but not the driver of the vehicle 25. Zerkes is the claims manager for the Seattle Zoo. He has been keeping data on the various types of losses that the zoo has incurred. His purpose is to learn which losses may have the greatest impact. Zerkes' broker suggested that he maintain separate claim records of the direct and indirect losses. Which of the following losses are considered direct losses? a. Lost worker productivity after a claim b. The increase in next year's insurance premiums c. The loss of use of damaged physical assets d. The cost to repair damaged property e. The lost time managers spend in court resolving liability claims 26. The term risk is best described as: a. A certainty that an adverse outcome will occur b. An event that is insurable c. A variation from the expected outcome d. A fortuitous outcome e. An event that can only have a negative outcome