RMI Exam 3 questions with correct
answers graded A+
Marias has an insurance policy with a $100,000 limit and a $5,000 deductible. If a loss of $150,000
occurs, how much will Marias receive from his insurer?
A) 150,000
B) 145,000
C) 100,000
D) 95,000
C) 100,000
True or False: All insurance policies include deductibles.
False
Gavin purchases a property insurance policy which covers a piece of property with an insurable value of
$1 million. If the policy has a 90% coinsurance requirement, what is the MINIMUM amount of coverage
Gavin must purchase in order to meet the requirement?
a) more than $1 million
b) $1 million
c) $900,000
d) $800,000
e) Less than $800,000
c) $900,000
, Bob owns property with an insurable value of $2 million. If he has an insurance policy with a $1.2 million
limit and the policy includes an 80% coinsurance requirement, is he carrying sufficient limits to meet the
coinsurance requirement?
a) yes - his limits are sufficient to meet the requirement
b) no - the limits he is carrying are not sufficient to meet the requirement
b) no - the limits he is carrying are not sufficient to meet the requirement
Shandra has two insurance policies. Policy A has a $2 million limit and Policy B has an $8 million limit. If a
$10,000 loss occurs and both policies include pro-rata liability other insurance provisions (and ignoring
any deductibles), Policy A will pay:
a) More than policy B
b) Less than policy B
c) The same as policy B
b) Less than policy B
Awards which can be determined and documented as referred to as __________ awards.
a) special
b) general
c) punitive
d_ non-compensatory
a) special
Which of the following is NOT a tort?
a) negligence
b) Breach of contract
c) Strict (absolute) liability
d) Intentional tort
answers graded A+
Marias has an insurance policy with a $100,000 limit and a $5,000 deductible. If a loss of $150,000
occurs, how much will Marias receive from his insurer?
A) 150,000
B) 145,000
C) 100,000
D) 95,000
C) 100,000
True or False: All insurance policies include deductibles.
False
Gavin purchases a property insurance policy which covers a piece of property with an insurable value of
$1 million. If the policy has a 90% coinsurance requirement, what is the MINIMUM amount of coverage
Gavin must purchase in order to meet the requirement?
a) more than $1 million
b) $1 million
c) $900,000
d) $800,000
e) Less than $800,000
c) $900,000
, Bob owns property with an insurable value of $2 million. If he has an insurance policy with a $1.2 million
limit and the policy includes an 80% coinsurance requirement, is he carrying sufficient limits to meet the
coinsurance requirement?
a) yes - his limits are sufficient to meet the requirement
b) no - the limits he is carrying are not sufficient to meet the requirement
b) no - the limits he is carrying are not sufficient to meet the requirement
Shandra has two insurance policies. Policy A has a $2 million limit and Policy B has an $8 million limit. If a
$10,000 loss occurs and both policies include pro-rata liability other insurance provisions (and ignoring
any deductibles), Policy A will pay:
a) More than policy B
b) Less than policy B
c) The same as policy B
b) Less than policy B
Awards which can be determined and documented as referred to as __________ awards.
a) special
b) general
c) punitive
d_ non-compensatory
a) special
Which of the following is NOT a tort?
a) negligence
b) Breach of contract
c) Strict (absolute) liability
d) Intentional tort
