Question 1

Which of the following would be covered by a home insurance policy?

Accepted Answer

A) Hospital expenses for surgery 
B) Injury to animals,birds,or fish 
C) Boats and aircraft 
D) Damage to your roof from hail 
E) Theft of business supplies from your office 
A) Hospital expenses for surgery 
B) Injury to animals,birds,or fish 
C) Boats and aircraft 
D) Damage to your roof from hail 
E) Theft of business supplies from your office

Question 2

The most common method of dealing with risk is to:

Accepted Answer

A) shift the risk. 
B) pool the risk. 
C) avoid the risk. 
D) reduce the risk. 
E) assume the risk. 
A) shift the risk. 
B) pool the risk. 
C) avoid the risk. 
D) reduce the risk. 
E) assume the risk.

Question 3

What are the factors that affect the cost of home insurance?

Accepted Answer

The main influences on home in

Question 4

________ provides coverage for the risk of financial loss due to legal expenses,medical expenses,lost wages,and other expenses associated with injuries caused by an automobile accident for which you were responsible.

Accepted Answer

A) Medical payment 
B) Bodily injury liability 
C) Uninsured motorists protection 
D) No-fault insurance 
E) Comprehensive insurance 
A) Medical payment 
B) Bodily injury liability 
C) Uninsured motorists protection 
D) No-fault insurance 
E) Comprehensive insurance

Question 5

The comprehensive form (HO-5)of homeowner's insurance includes coverage for damage due to floods.

Accepted Answer

A) True 
 B)False

Question 6

According to 2015 data,recovering from just one inch of flood water inside your building can cost about:

Accepted Answer

A) $27,000 
B) $40,000 
C) $52,000 
D) $60,000 
E) $75,000 
A) $27,000 
B) $40,000 
C) $52,000 
D) $60,000 
E) $75,000

Question 7

________ coverage would pay for damage to your vehicle regardless of fault.

Accepted Answer

A) Property damage liability 
B) Collision 
C) Comprehensive physical damage 
D) Uninsured motorists protection 
E) Assigned risk 
A) Property damage liability 
B) Collision 
C) Comprehensive physical damage 
D) Uninsured motorists protection 
E) Assigned risk

Question 8

The additional living expenses component of a homeowner's insurance policy is designed to:

Accepted Answer

A) pay for temporary housing while your home is repaired. 
B) cover damage to property while away from home. 
C) reimburse a homeowner for damage done by a visitor. 
D) pay for medical expenses of people injured on your property. 
E) pay for repairs caused by fire or other hazards. 
A) pay for temporary housing while your home is repaired. 
B) cover damage to property while away from home. 
C) reimburse a homeowner for damage done by a visitor. 
D) pay for medical expenses of people injured on your property. 
E) pay for repairs caused by fire or other hazards.

Question 9

The purpose of insurance is to help protect you and your family against possible financial loss.

Accepted Answer

A) True 
 B)False

Question 10

What does the term subrogation mean as it relates to motor vehicle property damage coverage?

Accepted Answer

Subrogation is defined as the

Question 11

Which form of a homeowner's policy expands coverage to include replacement cost on contents?

Accepted Answer

A) Comprehensive Form (HO-5) 
B) Special Form (HO-3) 
C) Condominium Form (HO-6) 
D) Tenants Form (HO-4) 
E) Country Home Form (HO-7) 
A) Comprehensive Form (HO-5) 
B) Special Form (HO-3) 
C) Condominium Form (HO-6) 
D) Tenants Form (HO-4) 
E) Country Home Form (HO-7)

Question 12

________ coverage protects your automobile from risks such as glass breakage,falling objects,vandalism,or damage caused by hitting an animal.

Accepted Answer

A) Towing and emergency road service 
B) Comprehensive physical damage 
C) Collision 
D) Wage loss 
E) Medical payments 
A) Towing and emergency road service 
B) Comprehensive physical damage 
C) Collision 
D) Wage loss 
E) Medical payments

Question 13

Which one of the following would be an example of the driver classification category that helps determine insurance rates?

Accepted Answer

A) John Brown has a 2005 Mazda Miata Convertible. 
B) Harry Anderson lives in Boca Raton,Florida. 
C) Charlie Purciful is 22 years old. 
D) Charlotte Webb has her vehicle in a locked garage. 
E) Barry Evans has just moved to Raleigh,North Carolina. 
A) John Brown has a 2005 Mazda Miata Convertible. 
B) Harry Anderson lives in Boca Raton,Florida. 
C) Charlie Purciful is 22 years old. 
D) Charlotte Webb has her vehicle in a locked garage. 
E) Barry Evans has just moved to Raleigh,North Carolina.

Question 14

Helen Granger borrowed her best friend's car and was in an accident.She was at fault.The car was totaled.What part of Helen's automobile insurance policy would cover the damage to her friend's car?

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

You are backing out of your driveway,late for a meeting.A short mental lapse and BANG...you hit a post at the end of your driveway.The damage seems minor.What questions should you ask when trying to decide whether or not to report the incident to your insurance company?

Accepted Answer

Questions that you would want

Question 16

Medical payments coverage in an automobile insurance policy pays for the costs of injuries to persons in the driver's vehicle.

Accepted Answer

A) True 
 B)False

Question 17

Peter Jacobs has set aside $5,000 in case he has an accident in his 2001 Honda Civic.He does not have collision insurance on this car.How is Peter managing his risk?

Accepted Answer

A) Avoidance 
B) Reduction 
C) Assumption 
D) Shifting 
E) Creation 
A) Avoidance 
B) Reduction 
C) Assumption 
D) Shifting 
E) Creation

Question 18

The 100 in 100/300/50 refers to:

Accepted Answer

A) property damage liability coverage. 
B) the amount of the deductible. 
C) collision coverage. 
D) the total coverage for an accident. 
E) the limit for bodily injury claims that can be paid to one person. 
A) property damage liability coverage. 
B) the amount of the deductible. 
C) collision coverage. 
D) the total coverage for an accident. 
E) the limit for bodily injury claims that can be paid to one person.

Question 19

What type of coverage in a home insurance policy is designed to pay for legal action taken against a homeowner who may be legally responsible for another person's losses or injuries?

Accepted Answer

A) Business property 
B) Liability 
C) Floater 
D) Comprehensive 
E) Personal property 
A) Business property 
B) Liability 
C) Floater 
D) Comprehensive 
E) Personal property

Question 20

Personal belongings that have a high value can be protected with a personal property floater.

Accepted Answer

A) True 
 B)False

Which of the following would be covered by a home insurance policy?

The most common method of dealing with risk is to:

What are the factors that affect the cost of home insurance?

________ provides coverage for the risk of financial loss due to legal expenses,medical expenses,lost wages,and other expenses associated with injuries caused by an automobile accident for which you were responsible.

The comprehensive form (HO-5)of homeowner's insurance includes coverage for damage due to floods.

According to 2015 data,recovering from just one inch of flood water inside your building can cost about:

________ coverage would pay for damage to your vehicle regardless of fault.

The additional living expenses component of a homeowner's insurance policy is designed to:

The purpose of insurance is to help protect you and your family against possible financial loss.

What does the term subrogation mean as it relates to motor vehicle property damage coverage?

Which form of a homeowner's policy expands coverage to include replacement cost on contents?

________ coverage protects your automobile from risks such as glass breakage,falling objects,vandalism,or damage caused by hitting an animal.

Which one of the following would be an example of the driver classification category that helps determine insurance rates?

Helen Granger borrowed her best friend's car and was in an accident.She was at fault.The car was totaled.What part of Helen's automobile insurance policy would cover the damage to her friend's car?

You are backing out of your driveway,late for a meeting.A short mental lapse and BANG...you hit a post at the end of your driveway.The damage seems minor.What questions should you ask when trying to decide whether or not to report the incident to your insurance company?

Medical payments coverage in an automobile insurance policy pays for the costs of injuries to persons in the driver's vehicle.

Peter Jacobs has set aside $5,000 in case he has an accident in his 2001 Honda Civic.He does not have collision insurance on this car.How is Peter managing his risk?

The 100 in 100/300/50 refers to:

What type of coverage in a home insurance policy is designed to pay for legal action taken against a homeowner who may be legally responsible for another person's losses or injuries?

Personal belongings that have a high value can be protected with a personal property floater.

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

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Exam 10: Property and Motor Vehicle Insurance

Which of the following would be covered by a home insurance policy?

The most common method of dealing with risk is to:

What are the factors that affect the cost of home insurance?

________ provides coverage for the risk of financial loss due to legal expenses,medical expenses,lost wages,and other expenses associated with injuries caused by an automobile accident for which you were responsible.

The comprehensive form (HO-5)of homeowner's insurance includes coverage for damage due to floods.

According to 2015 data,recovering from just one inch of flood water inside your building can cost about:

________ coverage would pay for damage to your vehicle regardless of fault.

The additional living expenses component of a homeowner's insurance policy is designed to:

The purpose of insurance is to help protect you and your family against possible financial loss.

What does the term subrogation mean as it relates to motor vehicle property damage coverage?

Which form of a homeowner's policy expands coverage to include replacement cost on contents?

________ coverage protects your automobile from risks such as glass breakage,falling objects,vandalism,or damage caused by hitting an animal.

Which one of the following would be an example of the driver classification category that helps determine insurance rates?

Helen Granger borrowed her best friend's car and was in an accident.She was at fault.The car was totaled.What part of Helen's automobile insurance policy would cover the damage to her friend's car?

You are backing out of your driveway,late for a meeting.A short mental lapse and BANG...you hit a post at the end of your driveway.The damage seems minor.What questions should you ask when trying to decide whether or not to report the incident to your insurance company?

Medical payments coverage in an automobile insurance policy pays for the costs of injuries to persons in the driver's vehicle.

Peter Jacobs has set aside $5,000 in case he has an accident in his 2001 Honda Civic.He does not have collision insurance on this car.How is Peter managing his risk?

The 100 in 100/300/50 refers to:

What type of coverage in a home insurance policy is designed to pay for legal action taken against a homeowner who may be legally responsible for another person's losses or injuries?

Personal belongings that have a high value can be protected with a personal property floater.

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