Question 1

Fewer than what percent of people who live in flood-prone areas have flood insurance?

Accepted Answer

A) 5 
B) 15 
C) 20 
D) 30 
E) 50 
A) 5 
B) 15 
C) 20 
D) 30 
E) 50 E

Question 2

Which one of the following would be an example of a rating territory that helps determine insurance rates?

Accepted Answer

A) Paul Carter drives a 2002 Volkswagen Eurovan. 
B) Mary Williams is 73 years old. 
C) Kathy Smith lives in Guthrie,Oklahoma. 
D) Jeremy Davis is married. 
E) John Brown has had three speeding tickets in five years. 
A) Paul Carter drives a 2002 Volkswagen Eurovan. 
B) Mary Williams is 73 years old. 
C) Kathy Smith lives in Guthrie,Oklahoma. 
D) Jeremy Davis is married. 
E) John Brown has had three speeding tickets in five years. C

Question 3

Eating a balanced diet and exercising is an example of risk ________.

Accepted Answer

A) shifting 
B) acceptance 
C) reduction 
D) assumption 
E) avoidance 
A) shifting 
B) acceptance 
C) reduction 
D) assumption 
E) avoidance C

Question 4

Brett Johnson owns a home in Yukon,Oklahoma.A babysitter he hires breaks her leg when she trips over the dog.What part of his homeowner's insurance would cover this loss?

Accepted Answer

A) House and other structures 
B) Additional living expenses 
C) Personal property 
D) Personal liability 
E) Specialized coverage 
A) House and other structures 
B) Additional living expenses 
C) Personal property 
D) Personal liability 
E) Specialized coverage

Question 5

Risk management is an organized strategy for protecting and conserving assets and people.

Accepted Answer

A) True 
 B)False

Question 6

Explain the difference between strict and vicarious liability.Provide examples.

Accepted Answer

Strict liability is present when a perso

Question 7

Comprehensive physical damage coverage would cover financial losses due to:

Accepted Answer

A) injuries caused by a driver without insurance. 
B) damage to your car in an accident for which you were at fault. 
C) damage to your car caused by wind or hail. 
D) legal action against you for an accident. 
E) damage to a neighbor's tree caused by your car. 
A) injuries caused by a driver without insurance. 
B) damage to your car in an accident for which you were at fault. 
C) damage to your car caused by wind or hail. 
D) legal action against you for an accident. 
E) damage to a neighbor's tree caused by your car.

Question 8

Joan Stone owns a home in Edmond,Oklahoma.She is worried her property might be damaged due to some unforeseen event.This worry about the uncertainty as to a loss is an example of a:

Accepted Answer

A) peril. 
B) hazard. 
C) risk. 
D) premium. 
E) policy. 
A) peril. 
B) hazard. 
C) risk. 
D) premium. 
E) policy.

Question 9

Property damage liability coverage would pay for damage to another vehicle for which you were at fault.

Accepted Answer

A) True 
 B)False

Question 10

Which one of the following refers to a category based on the driver's age,sex,marital status,and driving habits that is used to set automobile insurance premiums?

Accepted Answer

A) Rating territory 
B) Assigned risk pool 
C) No-fault system 
D) Driver classification 
E) Rating tiers 
A) Rating territory 
B) Assigned risk pool 
C) No-fault system 
D) Driver classification 
E) Rating tiers

Question 11

What do automobile insurance companies use GPS technology for?

Accepted Answer

GPS or global positioning systems and ot

Question 12

The 100/300 amounts for bodily injury liability insurance refer to the premium associated with insurance coverage.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following refers to the process of establishing a monetary fund that can be used to cover the cost of a loss?

Accepted Answer

A) Risk reduction 
B) Self-insurance 
C) Risk creation 
D) Risk avoidance 
E) Risk shifting 
A) Risk reduction 
B) Self-insurance 
C) Risk creation 
D) Risk avoidance 
E) Risk shifting

Question 14

Evan McWilliams accidentally collided with a car driven by Francis Sullivan.It was Evan's fault and Francis was seriously injured and had to spend the night in the hospital.What part of Evan's automobile insurance policy would cover Francis's injuries?

Accepted Answer

A) Bodily injury liability 
B) Medical payments coverage 
C) Property damage liability 
D) Collision 
E) Comprehensive physical damage 
A) Bodily injury liability 
B) Medical payments coverage 
C) Property damage liability 
D) Collision 
E) Comprehensive physical damage

Question 15

Most insurance policies include deductibles,which are a combination of risk assumption and:

Accepted Answer

A) risk avoidance. 
B) risk reduction. 
C) risk shifting. 
D) risk creation. 
E) risk assessment. 
A) risk avoidance. 
B) risk reduction. 
C) risk shifting. 
D) risk creation. 
E) risk assessment.

Question 16

Approximately what percent of people who rent have purchased renter's insurance?

Accepted Answer

A) 10 
B) 20 
C) 40 
D) 60 
E) 75 
A) 10 
B) 20 
C) 40 
D) 60 
E) 75

Question 17

Renter's insurance would include coverage for:

Accepted Answer

A) flood damage. 
B) personal property. 
C) house and other structures. 
D) umbrella liability. 
E) earthquake damage. 
A) flood damage. 
B) personal property. 
C) house and other structures. 
D) umbrella liability. 
E) earthquake damage.

Question 18

Which one of the following insurance policy provisions requires the insured to pay for part of the loss if the property is not insured for the specified percentage of replacement value?

Accepted Answer

A) Personal property floater 
B) An endorsement 
C) Coinsurance clause 
D) Umbrella coverage 
E) Assigned risk clause 
A) Personal property floater 
B) An endorsement 
C) Coinsurance clause 
D) Umbrella coverage 
E) Assigned risk clause

Question 19

Wind damage occurs to your car costing $800 to repair.If you have a $500 deductible for collision and full coverage for comprehensive,what portion of the claim will the insurance company pay?

Accepted Answer

A) $100 
B) $200 
C) $500 
D) $700 
E) $800 
A) $100 
B) $200 
C) $500 
D) $700 
E) $800

Question 20

While cleaning your home,a worker damages some furniture.You take action against the worker's employer to cover the cost of the damage.This is an example of a(n)________ liability.

Accepted Answer

A) umbrella 
B) assigned 
C) common situation 
D) peril 
E) vicarious 
A) umbrella 
B) assigned 
C) common situation 
D) peril 
E) vicarious

Fewer than what percent of people who live in flood-prone areas have flood insurance?

Which one of the following would be an example of a rating territory that helps determine insurance rates?

Eating a balanced diet and exercising is an example of risk ________.

Brett Johnson owns a home in Yukon,Oklahoma.A babysitter he hires breaks her leg when she trips over the dog.What part of his homeowner's insurance would cover this loss?

Risk management is an organized strategy for protecting and conserving assets and people.

Explain the difference between strict and vicarious liability.Provide examples.

Comprehensive physical damage coverage would cover financial losses due to:

Joan Stone owns a home in Edmond,Oklahoma.She is worried her property might be damaged due to some unforeseen event.This worry about the uncertainty as to a loss is an example of a:

Property damage liability coverage would pay for damage to another vehicle for which you were at fault.

Which one of the following refers to a category based on the driver's age,sex,marital status,and driving habits that is used to set automobile insurance premiums?

What do automobile insurance companies use GPS technology for?

The 100/300 amounts for bodily injury liability insurance refer to the premium associated with insurance coverage.

Which of the following refers to the process of establishing a monetary fund that can be used to cover the cost of a loss?

Evan McWilliams accidentally collided with a car driven by Francis Sullivan.It was Evan's fault and Francis was seriously injured and had to spend the night in the hospital.What part of Evan's automobile insurance policy would cover Francis's injuries?

Most insurance policies include deductibles,which are a combination of risk assumption and:

Approximately what percent of people who rent have purchased renter's insurance?

Renter's insurance would include coverage for:

Which one of the following insurance policy provisions requires the insured to pay for part of the loss if the property is not insured for the specified percentage of replacement value?

Wind damage occurs to your car costing $800 to repair.If you have a $500 deductible for collision and full coverage for comprehensive,what portion of the claim will the insurance company pay?

While cleaning your home,a worker damages some furniture.You take action against the worker's employer to cover the cost of the damage.This is an example of a(n)________ liability.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters

Exam 10: Property and Motor Vehicle Insurance

Fewer than what percent of people who live in flood-prone areas have flood insurance?

Which one of the following would be an example of a rating territory that helps determine insurance rates?

Eating a balanced diet and exercising is an example of risk ________.

Brett Johnson owns a home in Yukon,Oklahoma.A babysitter he hires breaks her leg when she trips over the dog.What part of his homeowner's insurance would cover this loss?

Risk management is an organized strategy for protecting and conserving assets and people.

Explain the difference between strict and vicarious liability.Provide examples.

Comprehensive physical damage coverage would cover financial losses due to:

Joan Stone owns a home in Edmond,Oklahoma.She is worried her property might be damaged due to some unforeseen event.This worry about the uncertainty as to a loss is an example of a:

Property damage liability coverage would pay for damage to another vehicle for which you were at fault.

Which one of the following refers to a category based on the driver's age,sex,marital status,and driving habits that is used to set automobile insurance premiums?

What do automobile insurance companies use GPS technology for?

The 100/300 amounts for bodily injury liability insurance refer to the premium associated with insurance coverage.

Which of the following refers to the process of establishing a monetary fund that can be used to cover the cost of a loss?

Evan McWilliams accidentally collided with a car driven by Francis Sullivan.It was Evan's fault and Francis was seriously injured and had to spend the night in the hospital.What part of Evan's automobile insurance policy would cover Francis's injuries?

Most insurance policies include deductibles,which are a combination of risk assumption and:

Approximately what percent of people who rent have purchased renter's insurance?

Renter's insurance would include coverage for:

Which one of the following insurance policy provisions requires the insured to pay for part of the loss if the property is not insured for the specified percentage of replacement value?

Wind damage occurs to your car costing $800 to repair.If you have a $500 deductible for collision and full coverage for comprehensive,what portion of the claim will the insurance company pay?

While cleaning your home,a worker damages some furniture.You take action against the worker's employer to cover the cost of the damage.This is an example of a(n)________ liability.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters