Fundamentals of Insurance - Chapter 6 Exam Questions and Correct Answers Already Passed
Actual cash value - Answers in homeowner's insurance, current cash value considering depreciation
Additional living expenses - Answers coverage for loss of use
Floater - Answers a special insurance policy for extremely valuable, unique, or irreplaceable personal
property, such as jewelry or art
Guaranteed replacement cost - Answers in homeowner's insurance, excess replacement cost coverage
that may pay as much as 120 or 150 percent of the value of the policy to rebuild your home
Homeowner's insurance - Answers a binding legal contract between you, the insured, and the insurer,
that protects you, your home, and belongings if they are damaged or destroyed
Inflation guard clause - Answers increases the policy coverage of homeowner's insurance each year
based on the changes in building costs in your area
Loss of use - Answers refers to your home or rental property being uninhabitable due to a loss; expenses
for loss of use may include the cost of a temporary rental home or hotel room, meals, and parking
Named perils - Answers causes of loss specified in an insurance policy
Natural risks - Answers occurrences such as earthquakes, storms, and floods that homeowners face in
their region of the country
Perils - Answers sources of danger that result in loss
Personal liability coverage - Answers in homeowner's insurance, protection from claims or judgments
made against you, the policyholder, for damages or physical injury caused by you, members of your
family or your pets, or that occurred on your property
Redline - Answers when an insurer refuses coverage to people because they live in certain
neighborhoods
Renter's insurance - Answers protects individuals who live in a house, mobile home, condominium, or
apartment that is owned by another person
Replacement cost - Answers in homeowner's insurance, the current cost of replacing or rebuilding
without any deduction for depreciation
Schedule - Answers to insure particular items, such as jewelry or art, for a specific value of their own
Settlement recourse - Answers the systematic process of disputing a settlement
Umbrella policy - Answers a special type of liability insurance that sits on top of your auto and
homeowner's or renter's insurance to provide extra protection
Actual cash value - Answers in homeowner's insurance, current cash value considering depreciation
Additional living expenses - Answers coverage for loss of use
Floater - Answers a special insurance policy for extremely valuable, unique, or irreplaceable personal
property, such as jewelry or art
Guaranteed replacement cost - Answers in homeowner's insurance, excess replacement cost coverage
that may pay as much as 120 or 150 percent of the value of the policy to rebuild your home
Homeowner's insurance - Answers a binding legal contract between you, the insured, and the insurer,
that protects you, your home, and belongings if they are damaged or destroyed
Inflation guard clause - Answers increases the policy coverage of homeowner's insurance each year
based on the changes in building costs in your area
Loss of use - Answers refers to your home or rental property being uninhabitable due to a loss; expenses
for loss of use may include the cost of a temporary rental home or hotel room, meals, and parking
Named perils - Answers causes of loss specified in an insurance policy
Natural risks - Answers occurrences such as earthquakes, storms, and floods that homeowners face in
their region of the country
Perils - Answers sources of danger that result in loss
Personal liability coverage - Answers in homeowner's insurance, protection from claims or judgments
made against you, the policyholder, for damages or physical injury caused by you, members of your
family or your pets, or that occurred on your property
Redline - Answers when an insurer refuses coverage to people because they live in certain
neighborhoods
Renter's insurance - Answers protects individuals who live in a house, mobile home, condominium, or
apartment that is owned by another person
Replacement cost - Answers in homeowner's insurance, the current cost of replacing or rebuilding
without any deduction for depreciation
Schedule - Answers to insure particular items, such as jewelry or art, for a specific value of their own
Settlement recourse - Answers the systematic process of disputing a settlement
Umbrella policy - Answers a special type of liability insurance that sits on top of your auto and
homeowner's or renter's insurance to provide extra protection
