Question 1

The ________ method to settle claims is based on the current replacement cost of a damaged or lost item less depreciation.

Accepted Answer

A) replacement value 
B) actual cash value 
C) umbrella 
D) endorsement 
E) personal property floater 
A) replacement value 
B) actual cash value 
C) umbrella 
D) endorsement 
E) personal property floater

Question 2

Another term for liability insurance that protects you from claims if a client holds you responsible for errors or you fail to perform as promised is:

Accepted Answer

A) umbrella policy. 
B) personal property floater. 
C) errors and omissions. 
D) endorsement. 
E) self-insurance. 
A) umbrella policy. 
B) personal property floater. 
C) errors and omissions. 
D) endorsement. 
E) self-insurance.

Question 3

Which of the following is not something you should do when you are involved in an automobile accident?

Accepted Answer

A) Stop your vehicle 
B) Turn off the engine 
C) Seek medical assistance for anyone with injuries 
D) Discuss the accident with anyone around,making sure to admit liability if the accident was your fault 
E) Obtain names and contact information of others in the accident and witnesses 
A) Stop your vehicle 
B) Turn off the engine 
C) Seek medical assistance for anyone with injuries 
D) Discuss the accident with anyone around,making sure to admit liability if the accident was your fault 
E) Obtain names and contact information of others in the accident and witnesses

Question 4

Which one of the following would not be considered personal property by a homeowner's insurance policy?

Accepted Answer

A) Furniture 
B) Toaster 
C) Tool shed 
D) Clothing 
E) Microwave 
A) Furniture 
B) Toaster 
C) Tool shed 
D) Clothing 
E) Microwave

Question 5

Replacement value for settling property insurance claims is less costly than the actual cash value method.

Accepted Answer

A) True 
 B)False

Question 6

Georgette Valentine has expensive photography equipment for use in her hobby.Which one of the following types of coverage would pay for damage or theft of this equipment?

Accepted Answer

A) Umbrella policy 
B) Personal liability 
C) Additional living expense coverage 
D) Personal property floater 
E) Coinsurance floater 
A) Umbrella policy 
B) Personal liability 
C) Additional living expense coverage 
D) Personal property floater 
E) Coinsurance floater

Question 7

To reduce driving accidents among teens,some parents have installed an in-car monitoring device that records:

Accepted Answer

A) seat belt use. 
B) engine temperature. 
C) tire pressure. 
D) oil changes. 
E) easy turns. 
A) seat belt use. 
B) engine temperature. 
C) tire pressure. 
D) oil changes. 
E) easy turns.

Question 8

Susan Bize owns a home in Edmond,Oklahoma.She has a coffee maker in the home that has been recalled because it is likely to start fires.The coffee maker is an example of a:

Accepted Answer

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

Question 9

The 25 in 50/100/25 refers to ________ coverage.

Accepted Answer

A) assigned risk 
B) bodily injury liability 
C) no-fault insurance 
D) medical payments 
E) property damage liability 
A) assigned risk 
B) bodily injury liability 
C) no-fault insurance 
D) medical payments 
E) property damage liability

Question 10

The 500 in 200/500/50 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 all bodily injury claims from a single accident. 
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 all bodily injury claims from a single accident.

Question 11

Your home insurance provides for replacement value for personal property losses.A microwave is stolen.It cost $300 two years ago and has an expected life of six years.A comparable microwave costs $400 today.What amount will the insurance company pay?

Accepted Answer

A) $100 
B) $150 
C) $200 
D) $350 
E) $400 
A) $100 
B) $150 
C) $200 
D) $350 
E) $400

Question 12

Which one of the following factors is used to determine a person's driver classification?

Accepted Answer

A) Age 
B) Type and age of vehicle 
C) Claims in your geographic area 
D) Insurance company claim processing costs 
E) State insurance premium regulations 
A) Age 
B) Type and age of vehicle 
C) Claims in your geographic area 
D) Insurance company claim processing costs 
E) State insurance premium regulations

Question 13

High winds cause damage to trees,shrubs,and plants.This insurance claim would be covered under the ________ component of homeowner's insurance.

Accepted Answer

A) additional living expenses 
B) personal property 
C) house and other structures 
D) personal liability 
E) specialized coverage 
A) additional living expenses 
B) personal property 
C) house and other structures 
D) personal liability 
E) specialized coverage

Question 14

What coverages are included in a homeowner's insurance policy?

Accepted Answer

Most home insurance policies include cov

Question 15

Self-insurance is part of:

Accepted Answer

A) risk avoidance. 
B) risk assumption. 
C) risk shifting. 
D) risk reduction. 
E) endorsement. 
A) risk avoidance. 
B) risk assumption. 
C) risk shifting. 
D) risk reduction. 
E) endorsement.

Question 16

Property owners face loss of use risk due to:

Accepted Answer

A) arson. 
B) fire. 
C) wind. 
D) water. 
E) smoke. 
A) arson. 
B) fire. 
C) wind. 
D) water. 
E) smoke.

Question 17

Most home insurance policies provide coverage for minor accidental injuries on your property under:

Accepted Answer

A) earthquake damage. 
B) flood damage. 
C) an umbrella liability. 
D) personal property floaters. 
E) medical payments coverage. 
A) earthquake damage. 
B) flood damage. 
C) an umbrella liability. 
D) personal property floaters. 
E) medical payments coverage.

Question 18

A system that requires each insurance company operating in a state to provide coverage to individuals who may have had many expensive claims is referred to as:

Accepted Answer

A) no-fault insurance. 
B) an assigned risk pool. 
C) premium discounts. 
D) equal opportunity insurance. 
E) comprehensive coverage. 
A) no-fault insurance. 
B) an assigned risk pool. 
C) premium discounts. 
D) equal opportunity insurance. 
E) comprehensive coverage.

Question 19

________ protects you against financial loss when your car damages other vehicles,street signs,or buildings.

Accepted Answer

A) Bodily injury liability 
B) Comprehensive physical damage 
C) Property damage liability 
D) No-fault insurance 
E) Assigned risk coverage 
A) Bodily injury liability 
B) Comprehensive physical damage 
C) Property damage liability 
D) No-fault insurance 
E) Assigned risk coverage

Question 20

Homeowner's insurance refers to coverage also available to condominium owners.

Accepted Answer

A) True 
 B)False

The ________ method to settle claims is based on the current replacement cost of a damaged or lost item less depreciation.

Another term for liability insurance that protects you from claims if a client holds you responsible for errors or you fail to perform as promised is:

Which of the following is not something you should do when you are involved in an automobile accident?

Which one of the following would not be considered personal property by a homeowner's insurance policy?

Replacement value for settling property insurance claims is less costly than the actual cash value method.

Georgette Valentine has expensive photography equipment for use in her hobby.Which one of the following types of coverage would pay for damage or theft of this equipment?

To reduce driving accidents among teens,some parents have installed an in-car monitoring device that records:

Susan Bize owns a home in Edmond,Oklahoma.She has a coffee maker in the home that has been recalled because it is likely to start fires.The coffee maker is an example of a:

The 25 in 50/100/25 refers to ________ coverage.

The 500 in 200/500/50 refers to:

Your home insurance provides for replacement value for personal property losses.A microwave is stolen.It cost $300 two years ago and has an expected life of six years.A comparable microwave costs $400 today.What amount will the insurance company pay?

Which one of the following factors is used to determine a person's driver classification?

High winds cause damage to trees,shrubs,and plants.This insurance claim would be covered under the ________ component of homeowner's insurance.

What coverages are included in a homeowner's insurance policy?

Self-insurance is part of:

Property owners face loss of use risk due to:

Most home insurance policies provide coverage for minor accidental injuries on your property under:

A system that requires each insurance company operating in a state to provide coverage to individuals who may have had many expensive claims is referred to as:

________ protects you against financial loss when your car damages other vehicles,street signs,or buildings.

Homeowner's insurance refers to coverage also available to condominium owners.

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

The ________ method to settle claims is based on the current replacement cost of a damaged or lost item less depreciation.

Another term for liability insurance that protects you from claims if a client holds you responsible for errors or you fail to perform as promised is:

Which of the following is not something you should do when you are involved in an automobile accident?

Which one of the following would not be considered personal property by a homeowner's insurance policy?

Replacement value for settling property insurance claims is less costly than the actual cash value method.

Georgette Valentine has expensive photography equipment for use in her hobby.Which one of the following types of coverage would pay for damage or theft of this equipment?

To reduce driving accidents among teens,some parents have installed an in-car monitoring device that records:

Susan Bize owns a home in Edmond,Oklahoma.She has a coffee maker in the home that has been recalled because it is likely to start fires.The coffee maker is an example of a:

The 25 in 50/100/25 refers to ________ coverage.

The 500 in 200/500/50 refers to:

Your home insurance provides for replacement value for personal property losses.A microwave is stolen.It cost $300 two years ago and has an expected life of six years.A comparable microwave costs $400 today.What amount will the insurance company pay?

Which one of the following factors is used to determine a person's driver classification?

High winds cause damage to trees,shrubs,and plants.This insurance claim would be covered under the ________ component of homeowner's insurance.

What coverages are included in a homeowner's insurance policy?

Self-insurance is part of:

Property owners face loss of use risk due to:

Most home insurance policies provide coverage for minor accidental injuries on your property under:

A system that requires each insurance company operating in a state to provide coverage to individuals who may have had many expensive claims is referred to as:

________ protects you against financial loss when your car damages other vehicles,street signs,or buildings.

Homeowner's insurance refers to coverage also available to condominium owners.

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