1. (TCO 9) Automobile Insurance Plans:
are sometimes referred to as "no-fault plans."
reduce the cost of automobile insurance to other drivers.
provide government-subsidized insurance to some drivers.
will provide auto insurance to anyone who can pay the premium.
are designed to provide auto insurance to persons who cannot obtain it thorough normal channels.
2. (TCO 9) All of the following statements are true with respect
to liability insurance except:
it is commonly referred to as third-party coverage.
the insurer is obligated to pay damages only when the insured is legally liable.
the injured party has a direct claim against the insurance company.
the insurer promises to defend any suits involving the type of liability insured.
none of the above.
3. (TCO 9) The definition of personal property in the
homeowner’s forms excludes:
all motorized vehicles.
watercraft while away from the premises.
money and securities.
all of the above.
4. (TCO 9) Automobile collision insurance covers damage to:
the insured's auto regardless of liability.
the insured's auto and another auto with which it collides.
another auto that the insured runs into if the insured is not liable.
another auto that the insured runs into if the insured is liable.
more than one of the above.
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