Question 1

No-fault insurance does not reduce premiums for collision, property damage, or comprehensive.

Accepted Answer

A) True 
 B)False

Question 2

An auto insurance premium may be partially based on:

Accepted Answer

A) Attitude of driver 
B) Expected life of car 
C) Make of car 
D) Number of years one expects to drive a car 
E) None of these 
A) Attitude of driver 
B) Expected life of car 
C) Make of car 
D) Number of years one expects to drive a car 
E) None of these

Question 3

Nonforfeiture values could result in the insured being paid the cash value of the policy and the policy being terminated.

Accepted Answer

A) True 
 B)False

Question 4

Matt Miller, age 28, takes out $50,000 of straight-life insurance. His annual premium is $418.20. At the end of 20 years, the cash value of his policy is (use the tables in the handbook):

Accepted Answer

A) $13,250 
B) $26,000 
C) $26,500 
D) $30,000 
E) None of these 
A) $13,250 
B) $26,000 
C) $26,500 
D) $30,000 
E) None of these

Question 5

In terms of premium cost, the most expensive type of insurance is:

Accepted Answer

A) Term 
B) Straight-life 
C) 20-payment life 
D) 20-year endowment 
E) None of these 
A) Term 
B) Straight-life 
C) 20-payment life 
D) 20-year endowment 
E) None of these

Question 6

Ann Rill insured her dress shop for $75,000 of fire insurance at an annual rate per $100 of $.63. At the end of nine months, Ann canceled the policy since her dress shop went out of business. What was the cost of Ann's premium as well as her refund?

Accepted Answer

The answer of Ann Rill insured her dress shop for...

Question 7

Term insurance builds up no cash value.

Accepted Answer

A) True 
 B)False

Question 8

Calculate the annual premium by using the table lookup for:

Accepted Answer

A) $7,920 
B) $787.20 
C) $675.60 
D) $600.00 
E) None of these 
A) $7,920 
B) $787.20 
C) $675.60 
D) $600.00 
E) None of these

Question 9

Reduced paid-up insurance means the policy continues for life at a reduced face amount.

Accepted Answer

A) True 
 B)False

Question 10

Using the tables in the handbook, calculate Joe Wheel's auto premium:

Accepted Answer

The answer of Using the tables in the handbook, calculate...

Question 11

Buying flight insurance at an airport is an example of straight-life insurance.

Accepted Answer

A) True 
 B)False

Question 12

The cash value of a life insurance policy is a cheap source of money.

Accepted Answer

A) True 
 B)False

Question 13

Jim opened a new pizza shop. He insures his store for $90,000 for fire. What is his premium if the rate per $100 is $.83?

Accepted Answer

A) $74.70 
B) $74,700 
C) $700 
D) $747.00 
E) None of these 
A) $74.70 
B) $74,700 
C) $700 
D) $747.00 
E) None of these

Question 14

The insurance required to meet coinsurance is:

Accepted Answer

A) 80% × face value 
B) 80% × replacement value 
C) 80% × actual loss 
D) Insurance carried divided by 80% 
E) None of these 
A) 80% × face value 
B) 80% × replacement value 
C) 80% × actual loss 
D) Insurance carried divided by 80% 
E) None of these

Question 15

All states have the same compulsory insurance.

Accepted Answer

A) True 
 B)False

Question 16

Using the tables in the handbook, calculate Joe Brake's auto premium.

Accepted Answer

The answer of Using the tables in the handbook, calculate...

Question 17

Bill Blum insured his hardware store with a fire insurance policy for $88,000 at a cost of $.84 per $100. Ten months later his insurance company canceled his policy as a result of failure to correct a fire hazard. The cost of the policy to Bill was:

Accepted Answer

A) $739.20 
B) $793.20 
C) $591.36 
D) $616.00 
E) None of these 
A) $739.20 
B) $793.20 
C) $591.36 
D) $616.00 
E) None of these

No-fault insurance does not reduce premiums for collision, property damage, or comprehensive.

An auto insurance premium may be partially based on:

Nonforfeiture values could result in the insured being paid the cash value of the policy and the policy being terminated.

Matt Miller, age 28, takes out $50,000 of straight-life insurance. His annual premium is $418.20. At the end of 20 years, the cash value of his policy is (use the tables in the handbook):

In terms of premium cost, the most expensive type of insurance is:

Ann Rill insured her dress shop for $75,000 of fire insurance at an annual rate per $100 of $.63. At the end of nine months, Ann canceled the policy since her dress shop went out of business. What was the cost of Ann's premium as well as her refund?

Term insurance builds up no cash value.

Calculate the annual premium by using the table lookup for:

Reduced paid-up insurance means the policy continues for life at a reduced face amount.

Using the tables in the handbook, calculate Joe Wheel's auto premium:

Buying flight insurance at an airport is an example of straight-life insurance.

The cash value of a life insurance policy is a cheap source of money.

Jim opened a new pizza shop. He insures his store for $90,000 for fire. What is his premium if the rate per $100 is $.83?

The insurance required to meet coinsurance is:

All states have the same compulsory insurance.

Using the tables in the handbook, calculate Joe Brake's auto premium.

Bill Blum insured his hardware store with a fire insurance policy for $88,000 at a cost of $.84 per $100. Ten months later his insurance company canceled his policy as a result of failure to correct a fire hazard. The cost of the policy to Bill was:

Whole Number: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How to Approach to Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Simple Interest

Promissory Notes, Simple Discount Notes and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Appreciation

Inventory and Overhead

Sales Excise and Property Taxes

Stocks, Bonds and Mutual Funds

Business Statistics

Filters

Exam 20: Life, Fire and Auto Insurance

No-fault insurance does not reduce premiums for collision, property damage, or comprehensive.

An auto insurance premium may be partially based on:

Nonforfeiture values could result in the insured being paid the cash value of the policy and the policy being terminated.

Matt Miller, age 28, takes out $50,000 of straight-life insurance. His annual premium is $418.20. At the end of 20 years, the cash value of his policy is (use the tables in the handbook):

In terms of premium cost, the most expensive type of insurance is:

Ann Rill insured her dress shop for $75,000 of fire insurance at an annual rate per $100 of $.63. At the end of nine months, Ann canceled the policy since her dress shop went out of business. What was the cost of Ann's premium as well as her refund?

Term insurance builds up no cash value.

Calculate the annual premium by using the table lookup for:

Reduced paid-up insurance means the policy continues for life at a reduced face amount.

Using the tables in the handbook, calculate Joe Wheel's auto premium:

Buying flight insurance at an airport is an example of straight-life insurance.

The cash value of a life insurance policy is a cheap source of money.

Jim opened a new pizza shop. He insures his store for $90,000 for fire. What is his premium if the rate per $100 is $.83?

The insurance required to meet coinsurance is:

All states have the same compulsory insurance.

Using the tables in the handbook, calculate Joe Brake's auto premium.

Bill Blum insured his hardware store with a fire insurance policy for $88,000 at a cost of $.84 per $100. Ten months later his insurance company canceled his policy as a result of failure to correct a fire hazard. The cost of the policy to Bill was:

Whole Number: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How to Approach to Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Simple Interest

Promissory Notes, Simple Discount Notes and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Appreciation

Inventory and Overhead

Sales Excise and Property Taxes

Stocks, Bonds and Mutual Funds

Business Statistics

Filters