Question 1

Which of the following is the only required coverage if you do not have a lien on your car?

Accepted Answer

A)  Liability coverage 
B)  Medical payments to others 
C)  Collision and comprehensive coverage 
D)  None of the coverages are required. 
A)  Liability coverage 
B)  Medical payments to others 
C)  Collision and comprehensive coverage 
D)  None of the coverages are required.

Question 2

All other things being equal, which of the following factors could lower a person's auto insurance rates?

Accepted Answer

A)  Living in a small town 
B)  Driving the car to work rather than for pleasure only 
C)  Receiving a parking ticket 
D)  Having a poor credit history 
A)  Living in a small town 
B)  Driving the car to work rather than for pleasure only 
C)  Receiving a parking ticket 
D)  Having a poor credit history

Question 3

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

Accepted Answer

A)  collision 
B)  bodily injury liability 
C)  comprehensive physical damage 
D)  property damage liability 
A)  collision 
B)  bodily injury liability 
C)  comprehensive physical damage 
D)  property damage liability

Question 4

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

Accepted Answer

A)  An automobile 
B)  A garage 
C)  Furniture 
D)  Trees and shrubs 
A)  An automobile 
B)  A garage 
C)  Furniture 
D)  Trees and shrubs

Question 5

If your neighbor falls down the steps in your home and sues, you could be held responsible for her injuries.

Accepted Answer

A) True 
 B)False

Question 6

The insurance agent's role includes all of the following, except for

Accepted Answer

A)  assessing the client's risk of loss. 
B)  assisting the client in determining the amount of insurance they may need. 
C)  working with the insurance company to prepare the client's insurance policy. 
D)  assisting the client in filing a claim for coverage. 
A)  assessing the client's risk of loss. 
B)  assisting the client in determining the amount of insurance they may need. 
C)  working with the insurance company to prepare the client's insurance policy. 
D)  assisting the client in filing a claim for coverage.

Question 7

Which of the following is not true about state financial responsibility laws?

Accepted Answer

A)  They require individuals who drive cars to purchase a minimum amount of liability insurance. 
B)  They are the same for all states. 
C)  They may require proof of insurance to register a car. 
D)  They may require proof of insurance when drivers are involved in an accident. 
A)  They require individuals who drive cars to purchase a minimum amount of liability insurance. 
B)  They are the same for all states. 
C)  They may require proof of insurance to register a car. 
D)  They may require proof of insurance when drivers are involved in an accident.

Question 8

Use the following two columns of items to answer the matching questions below:
-collision coverage
A)pays for injuries to you or people in your car in an accident where you (the driver) are at fault
B)requires individuals who drive cars to purchase a minimum amount of liability insurance
C)a set dollar amount that you are responsible for paying before any coverage is provided by your insurer
D)covers damage to your car when you are at fault in an accident
E)vehicle insurance to cover various injuries, your property, and the property of others
F)covers damage to your car as a result of theft, fire, vandalism, or various other events

Accepted Answer

The answer of Use the following two columns of items...

Question 9

A deductible of $300 requires

Accepted Answer

A)  the insurance company to pay the first $300 at 100% of damages. 
B)  you to pay the first $300 of damages. 
C)  the insurance company to pay the first $300 at 80% of damages. 
D)  the insurance company of the party at fault to pay. 
A)  the insurance company to pay the first $300 at 100% of damages. 
B)  you to pay the first $300 of damages. 
C)  the insurance company to pay the first $300 at 80% of damages. 
D)  the insurance company of the party at fault to pay.

Question 10

One of the problems with no-fault automobile insurance is that it

Accepted Answer

A)  results in higher court costs. 
B)  results in higher jury awards to victims. 
C)  doesn't penalize drivers who cause accidents to the degree that they should be. 
D)  hasn't resulted in lower costs to insurance companies or lower auto insurance premiums. 
A)  results in higher court costs. 
B)  results in higher jury awards to victims. 
C)  doesn't penalize drivers who cause accidents to the degree that they should be. 
D)  hasn't resulted in lower costs to insurance companies or lower auto insurance premiums.

Question 11

The deductible is the amount of damage to your car that you are responsible for paying before any coverage is provided by the insurance company.

Accepted Answer

A) True 
 B)False

Question 12

Some states have implemented ________ insurance programs that do not hold a specific driver liable for causing an accident.

Accepted Answer

The answer of Some states have implemented ________ insurance programs...

Question 13

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

Accepted Answer

A)  pay for temporary housing while your home is repaired from covered damage. 
B)  cover damage to your property while you are away from home. 
C)  reimburse a homeowner for damage done by a visitor. 
D)  pay for medical expenses or people injured on your property. 
A)  pay for temporary housing while your home is repaired from covered damage. 
B)  cover damage to your property while you are away from home. 
C)  reimburse a homeowner for damage done by a visitor. 
D)  pay for medical expenses or people injured on your property.

Question 14

The insurance that will cover your possessions if you lease an apartment is called ________.

Accepted Answer

The answer of The insurance that will cover your possessions...

Question 15

List two ways to reduce your homeowner's insurance premiums.

Accepted Answer

Any two of the following:
• Increase you

Question 16

List four ways to reduce your auto insurance premiums.

Accepted Answer

Any four of the following:
• Buy a less

Question 17

In the context of insurance, the term liability is used to mean that you may be required to pay other individuals for damages that you caused to them or their property.

Accepted Answer

A) True 
 B)False

Question 18

A common form of auto insurance fraud is

Accepted Answer

A)  faking an accident or injury. 
B)  stealing merchandise from a car. 
C)  driving without a valid license. 
D)  None of the above. 
A)  faking an accident or injury. 
B)  stealing merchandise from a car. 
C)  driving without a valid license. 
D)  None of the above.

Question 19

An umbrella policy is designed to cover

Accepted Answer

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

Question 20

Use the following two columns of items to answer the matching questions below:
-deductible
A)pays for injuries to you or people in your car in an accident where you (the driver) are at fault
B)requires individuals who drive cars to purchase a minimum amount of liability insurance
C)a set dollar amount that you are responsible for paying before any coverage is provided by your insurer
D)covers damage to your car when you are at fault in an accident
E)vehicle insurance to cover various injuries, your property, and the property of others
F)covers damage to your car as a result of theft, fire, vandalism, or various other events

Accepted Answer

The answer of Use the following two columns of items...

Which of the following is the only required coverage if you do not have a lien on your car?

All other things being equal, which of the following factors could lower a person's auto insurance rates?

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

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

If your neighbor falls down the steps in your home and sues, you could be held responsible for her injuries.

The insurance agent's role includes all of the following, except for

Which of the following is not true about state financial responsibility laws?

A deductible of $300 requires

One of the problems with no-fault automobile insurance is that it

The deductible is the amount of damage to your car that you are responsible for paying before any coverage is provided by the insurance company.

Some states have implemented ________ insurance programs that do not hold a specific driver liable for causing an accident.

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

The insurance that will cover your possessions if you lease an apartment is called ________.

List two ways to reduce your homeowner's insurance premiums.

List four ways to reduce your auto insurance premiums.

In the context of insurance, the term liability is used to mean that you may be required to pay other individuals for damages that you caused to them or their property.

A common form of auto insurance fraud is

An umbrella policy is designed to cover

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

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Exam 11: Auto and Homeowners Insurance

Which of the following is the only required coverage if you do not have a lien on your car?

All other things being equal, which of the following factors could lower a person's auto insurance rates?

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

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

If your neighbor falls down the steps in your home and sues, you could be held responsible for her injuries.

The insurance agent's role includes all of the following, except for

Which of the following is not true about state financial responsibility laws?

A deductible of $300 requires

One of the problems with no-fault automobile insurance is that it

The deductible is the amount of damage to your car that you are responsible for paying before any coverage is provided by the insurance company.

Some states have implemented ________ insurance programs that do not hold a specific driver liable for causing an accident.

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

The insurance that will cover your possessions if you lease an apartment is called ________.

List two ways to reduce your homeowner's insurance premiums.

List four ways to reduce your auto insurance premiums.

In the context of insurance, the term liability is used to mean that you may be required to pay other individuals for damages that you caused to them or their property.

A common form of auto insurance fraud is

An umbrella policy is designed to cover

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters