Question 1

Your home insurance policy has a $500 deductible.If a small fire causes $850 damage to your home,what amount of the claim would the insurance company pay?

Accepted Answer

A) $250 
B) $350 
C) $500 
D) $850 
E) Not able to determine from this information 
A) $250 
B) $350 
C) $500 
D) $850 
E) Not able to determine from this information

Question 2

Which of the following is considered personal property for home insurance coverage?

Accepted Answer

A) Automobile 
B) Garage 
C) Furniture 
D) House 
E) Trees and shrubs 
A) Automobile 
B) Garage 
C) Furniture 
D) House 
E) Trees and shrubs

Question 3

What type of personal liability coverage is also called a personal catastrophe policy?

Accepted Answer

A) Umbrella policy 
B) Personal property floater 
C) Coinsurance floater 
D) Assigned risk clause 
E) Medical payments coverage 
A) Umbrella policy 
B) Personal property floater 
C) Coinsurance floater 
D) Assigned risk clause 
E) Medical payments coverage

Question 4

Personal risks are the uncertainties surrounding the loss of income or life due to all except:

Accepted Answer

A) professional misconduct. 
B) premature death. 
C) illness. 
D) disability. 
E) unemployment. 
A) professional misconduct. 
B) premature death. 
C) illness. 
D) disability. 
E) unemployment.

Question 5

Nick Wilson owns a home in Edmond,Oklahoma and pays $795 per year in insurance on the home.The $795 fee is an example of a:

Accepted Answer

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

Question 6

Which of the following might qualify Amy Farmer for a premium discount on her automobile insurance?

Accepted Answer

A) Completing a driver's training program 
B) Earning straight A's in school 
C) Installing an alarm system in her car 
D) Participating in a carpool five days a week 
E) Any of these might qualify Amy for a discount. 
A) Completing a driver's training program 
B) Earning straight A's in school 
C) Installing an alarm system in her car 
D) Participating in a carpool five days a week 
E) Any of these might qualify Amy for a discount.

Question 7

An umbrella policy is designed to cover:

Accepted Answer

A) expensive personal property. 
B) additional buildings on your property. 
C) property when traveling away from home. 
D) major personal liability claims. 
E) flood damage. 
A) expensive personal property. 
B) additional buildings on your property. 
C) property when traveling away from home. 
D) major personal liability claims. 
E) flood damage.

Question 8

Homeowners can obtain $10,000 coverage for sewage and drain backup damage for approximately:

Accepted Answer

A) $50 to $80 per year. 
B) $80 to $100 per year. 
C) $100 to $200 per year. 
D) $200 to $300 per year. 
E) $300 to $400 per year. 
A) $50 to $80 per year. 
B) $80 to $100 per year. 
C) $100 to $200 per year. 
D) $200 to $300 per year. 
E) $300 to $400 per year.

Question 9

An assigned risk pool:

Accepted Answer

A) exists in every state. 
B) reduces medical costs associated with auto accidents. 
C) takes unsafe drivers off the road. 
D) reduces auto insurance premiums with state regulation. 
E) offers premium discounts to safe drivers. 
A) exists in every state. 
B) reduces medical costs associated with auto accidents. 
C) takes unsafe drivers off the road. 
D) reduces auto insurance premiums with state regulation. 
E) offers premium discounts to safe drivers.

Question 10

If a homeowner leaves toys on stairs that results in injury to a delivery person,this may be ruled as:

Accepted Answer

A) vicarious liability. 
B) negligence. 
C) assigned risk. 
D) umbrella coverage. 
E) coinsurance. 
A) vicarious liability. 
B) negligence. 
C) assigned risk. 
D) umbrella coverage. 
E) coinsurance.

Question 11

What is the most common and costly natural disaster in the United States?

Accepted Answer

A) Earthquakes 
B) Lightning strikes 
C) Floods 
D) Fires 
E) Thunderstorms 
A) Earthquakes 
B) Lightning strikes 
C) Floods 
D) Fires 
E) Thunderstorms

Question 12

Kevin Brown rides his bicycle to work so that he does not have to worry about getting in a car accident.How is Kevin 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 13

William Bennett owns a home in Tampa,Florida.There was a fire in his home and he and his family had to move to a hotel until his home could be fixed.What part of his homeowner's insurance policy would cover the cost of the hotel?

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 14

Wearing a seat belt in an automobile to protect yourself against the risk of injury in an automobile accident is an example of risk ________.

Accepted Answer

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

Question 15

Additional personal liability insurance beyond the basic coverage in a homeowner's policy is available with:

Accepted Answer

A) an umbrella policy. 
B) a personal property floater. 
C) an endorsement. 
D) a coinsurance clause. 
E) medical payments coverage. 
A) an umbrella policy. 
B) a personal property floater. 
C) an endorsement. 
D) a coinsurance clause. 
E) medical payments coverage.

Question 16

Zachary Harris owns a home in Elk City.There was a bad thunderstorm and his gazebo was hit by lightning and burned to the ground.What part of his homeowner's insurance policy 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 17

A household inventory helps to provide evidence of ownership and value of items covered by home insurance.

Accepted Answer

A) True 
 B)False

Question 18

An umbrella policy provides additional personal liability coverage beyond the basic amounts in most homeowner policies.

Accepted Answer

A) True 
 B)False

Question 19

Your geographic location is a major factor in determining the ________ used to calculate your automobile insurance premiums.

Accepted Answer

A) driver classification 
B) assigned risk pool 
C) coverage level 
D) legal responsibilities 
E) rating territory 
A) driver classification 
B) assigned risk pool 
C) coverage level 
D) legal responsibilities 
E) rating territory

Question 20

Starting a small business that may or may not succeed is an example of ________ risk.

Accepted Answer

A) speculative 
B) pure 
C) commercial 
D) personal 
E) liability 
A) speculative 
B) pure 
C) commercial 
D) personal 
E) liability

Your home insurance policy has a $500 deductible.If a small fire causes $850 damage to your home,what amount of the claim would the insurance company pay?

Which of the following is considered personal property for home insurance coverage?

What type of personal liability coverage is also called a personal catastrophe policy?

Personal risks are the uncertainties surrounding the loss of income or life due to all except:

Nick Wilson owns a home in Edmond,Oklahoma and pays $795 per year in insurance on the home.The $795 fee is an example of a:

Which of the following might qualify Amy Farmer for a premium discount on her automobile insurance?

An umbrella policy is designed to cover:

Homeowners can obtain $10,000 coverage for sewage and drain backup damage for approximately:

An assigned risk pool:

If a homeowner leaves toys on stairs that results in injury to a delivery person,this may be ruled as:

What is the most common and costly natural disaster in the United States?

Kevin Brown rides his bicycle to work so that he does not have to worry about getting in a car accident.How is Kevin managing his risk?

William Bennett owns a home in Tampa,Florida.There was a fire in his home and he and his family had to move to a hotel until his home could be fixed.What part of his homeowner's insurance policy would cover the cost of the hotel?

Wearing a seat belt in an automobile to protect yourself against the risk of injury in an automobile accident is an example of risk ________.

Additional personal liability insurance beyond the basic coverage in a homeowner's policy is available with:

Zachary Harris owns a home in Elk City.There was a bad thunderstorm and his gazebo was hit by lightning and burned to the ground.What part of his homeowner's insurance policy would cover this loss?

A household inventory helps to provide evidence of ownership and value of items covered by home insurance.

An umbrella policy provides additional personal liability coverage beyond the basic amounts in most homeowner policies.

Your geographic location is a major factor in determining the ________ used to calculate your automobile insurance premiums.

Starting a small business that may or may not succeed is an example of ________ risk.

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

Your home insurance policy has a $500 deductible.If a small fire causes $850 damage to your home,what amount of the claim would the insurance company pay?

Which of the following is considered personal property for home insurance coverage?

What type of personal liability coverage is also called a personal catastrophe policy?

Personal risks are the uncertainties surrounding the loss of income or life due to all except:

Nick Wilson owns a home in Edmond,Oklahoma and pays $795 per year in insurance on the home.The $795 fee is an example of a:

Which of the following might qualify Amy Farmer for a premium discount on her automobile insurance?

An umbrella policy is designed to cover:

Homeowners can obtain $10,000 coverage for sewage and drain backup damage for approximately:

An assigned risk pool:

If a homeowner leaves toys on stairs that results in injury to a delivery person,this may be ruled as:

What is the most common and costly natural disaster in the United States?

Kevin Brown rides his bicycle to work so that he does not have to worry about getting in a car accident.How is Kevin managing his risk?

William Bennett owns a home in Tampa,Florida.There was a fire in his home and he and his family had to move to a hotel until his home could be fixed.What part of his homeowner's insurance policy would cover the cost of the hotel?

Wearing a seat belt in an automobile to protect yourself against the risk of injury in an automobile accident is an example of risk ________.

Additional personal liability insurance beyond the basic coverage in a homeowner's policy is available with:

Zachary Harris owns a home in Elk City.There was a bad thunderstorm and his gazebo was hit by lightning and burned to the ground.What part of his homeowner's insurance policy would cover this loss?

A household inventory helps to provide evidence of ownership and value of items covered by home insurance.

An umbrella policy provides additional personal liability coverage beyond the basic amounts in most homeowner policies.

Your geographic location is a major factor in determining the ________ used to calculate your automobile insurance premiums.

Starting a small business that may or may not succeed is an example of ________ risk.

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