瑞达 Rejda 保险教材英文练习题09.doc

Principles of Risk Management and Insurance, 11e (Rejda) Chapter 9 Fundamental Legal Principles 1) Fundamental purposes of the principle of indemnity include which of the following? I. To reduce physical hazards. II. To prevent the insured from profiting from insurance. A) I only B) II only C) both I and II D) neither I nor II Answer: B Question Status: Previous Edition 2) Which of the following is a fundamental purpose of the principle of indemnity? A) to reduce moral hazard B) to minimize physical hazards C) to settle property insurance losses on a replacement cost basis D) to require deductibles in all property insurance policies Answer: A Question Status: Previous Edition 3) Sams furniture was destroyed by a fire. The furniture cost $1200 when it was purchased, but similar new furniture now costs $1800. Assuming the furniture was 50 percent depreciated, what is the actual cash value of Sams loss? A) $600 B) $900 C) $1200 D) $1800 Answer: B Question Status: Revised 4) All of the following are exceptions to the principle of indemnity EXCEPT A) life insurance. B) valued policies. C) replacement cost property insurance. D) actual cash value property insurance. Answer: D Question Status: Previous Edition 5) Under which of the following rules is actual cash value determined by taking into consideration all relevant factors an expert would use to determine the value of the property? A) the circumstantial evidence rule B) the broad evidence rule C) the property indemnity rule D) the objective value rule Answer: B Question Status: Previous Edition 6) A total loss under a valued policy is settled on the basis of the A) market value of the loss. B) actual cash value of the loss. C) replacement value of the loss. D) amount of insurance covering the loss. Answer: D Question Status: Previous Edition 7) Which of the following statements describes how losses will be settled if a property insurance policy is written on a replacement cost basis? A) Losses are settle