RMI 270 EXAM 2 (BSU) Questions With Complete
Solutions
"All-Risk" policies Correct Answer just cover what is excluded
25/50/25 Correct Answer -25,000 for per person injured
-50,000 for entire accident
-25,000 for property damages
80% of replacement cost requirement Correct Answer The 80%
rule refers to the fact that most insurance companies will not
fully cover the cost of damage to a house due to the occurrence
of an insured event (e.g. fire or flood), unless the homeowner
has purchased insurance coverage that is equal to at least 80% of
the house's total replacement value. In the event that a
homeowner has purchased an amount of coverage that is less
than the minimum 80%, the insurance company will only
reimburse the homeowner a proportionate amount of the
required minimum coverage that should have been purchased.
Actual Damages Correct Answer - Special Damages
- General Damages
- Punitive Damages
Aggregate Deductible Correct Answer $1000 on a car
deductible, you pay nothing when you reach aggregate
Assumption of Risk Correct Answer A person who understands
the dangers of an activity cannot recover damages if injured
, Attractive Nuisance Doctrine Correct Answer a hazardous
condition that can attract and injure children
Auto Insurance Policy Correct Answer A. Liability Coverage
B. Medical Payments
C. Uninsured Motorists Coverage
D. Coverage for Damage to your Auto
E. Duties after an Accident or Loss
F. General Provisions
Basic parts of an Insurance Contract: Correct Answer
Declarations
-Definitions
-Insuring agreement
-Exclusions
-Conditions
-Miscellaneous Provisions
Burden of proof Correct Answer the obligation to prove one's
assertion
Calendar Year Deductible Correct Answer $50 on dental, $50
calendar year, once reached no more deductible. Tells you the
number of deductible a year.
Charitable Organizations Correct Answer No longer immune
from lawsuits, especially with respect to commercial activities
Comparative Negligence Correct Answer If the injured person
contributed to their own injuries, their award is reduced by their
percentage of fault
Solutions
"All-Risk" policies Correct Answer just cover what is excluded
25/50/25 Correct Answer -25,000 for per person injured
-50,000 for entire accident
-25,000 for property damages
80% of replacement cost requirement Correct Answer The 80%
rule refers to the fact that most insurance companies will not
fully cover the cost of damage to a house due to the occurrence
of an insured event (e.g. fire or flood), unless the homeowner
has purchased insurance coverage that is equal to at least 80% of
the house's total replacement value. In the event that a
homeowner has purchased an amount of coverage that is less
than the minimum 80%, the insurance company will only
reimburse the homeowner a proportionate amount of the
required minimum coverage that should have been purchased.
Actual Damages Correct Answer - Special Damages
- General Damages
- Punitive Damages
Aggregate Deductible Correct Answer $1000 on a car
deductible, you pay nothing when you reach aggregate
Assumption of Risk Correct Answer A person who understands
the dangers of an activity cannot recover damages if injured
, Attractive Nuisance Doctrine Correct Answer a hazardous
condition that can attract and injure children
Auto Insurance Policy Correct Answer A. Liability Coverage
B. Medical Payments
C. Uninsured Motorists Coverage
D. Coverage for Damage to your Auto
E. Duties after an Accident or Loss
F. General Provisions
Basic parts of an Insurance Contract: Correct Answer
Declarations
-Definitions
-Insuring agreement
-Exclusions
-Conditions
-Miscellaneous Provisions
Burden of proof Correct Answer the obligation to prove one's
assertion
Calendar Year Deductible Correct Answer $50 on dental, $50
calendar year, once reached no more deductible. Tells you the
number of deductible a year.
Charitable Organizations Correct Answer No longer immune
from lawsuits, especially with respect to commercial activities
Comparative Negligence Correct Answer If the injured person
contributed to their own injuries, their award is reduced by their
percentage of fault
