Question 1

The ________ is the amount that you will need to pay if your car is damaged in an accident that was your fault.

Accepted Answer

The answer of The ________ is the amount that you...

Question 2

Use the following two columns of items to answer the matching questions below:
-financial responsibility laws
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 3

Of the following statements, which is not true regarding no-fault insurance?

Accepted Answer

A)  Not all states have no-fault insurance. 
B)  It helps determine which driver is at fault and which has no fault. 
C)  It is intended to avoid costly legal battles. 
D)  It does not prevent insurance fraud. 
A)  Not all states have no-fault insurance. 
B)  It helps determine which driver is at fault and which has no fault. 
C)  It is intended to avoid costly legal battles. 
D)  It does not prevent insurance fraud.

Question 4

Given the large number of uninsured drivers, uninsured motorist coverage is needed.

Accepted Answer

A) True 
 B)False

Question 5

Use the following two columns of items to answer the matching questions below:
-medical payments 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 6

Which of the following is not covered in a standard homeowner's policy?

Accepted Answer

A)  Lightning hits your house and it burns to the ground. 
B)  Your house is broken into and all the furniture is stolen. 
C)  The river near your house overflows its bank and washes your house away. 
D)  A hailstorm damages the roof of your house. 
A)  Lightning hits your house and it burns to the ground. 
B)  Your house is broken into and all the furniture is stolen. 
C)  The river near your house overflows its bank and washes your house away. 
D)  A hailstorm damages the roof of your house.

Question 7

Use the following two columns of items to answer the matching questions below:
-comprehensive 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 8

Liability insurance coverage would cost more for an expensive car than for an inexpensive car of the same age.

Accepted Answer

A) True 
 B)False

Question 9

What three insurance components do automobile and homeowner's policies usually have in common?

Accepted Answer

Liability, medical p

Question 10

Which of the following is not true regarding medical payments coverage?

Accepted Answer

A)  It covers both family and nonfamily members. 
B)  It is not recommended or needed if you have health insurance. 
C)  It may even cover funeral expenses. 
D)  Insurance professionals recommend coverage of about $10,000 per person. 
A)  It covers both family and nonfamily members. 
B)  It is not recommended or needed if you have health insurance. 
C)  It may even cover funeral expenses. 
D)  Insurance professionals recommend coverage of about $10,000 per person.

Question 11

Comprehensive coverage would cover financial losses due to

Accepted Answer

A)  injuries caused by a driver without insurance. 
B)  damage to your car in an accident for which you were at fault. 
C)  damage to your car caused by wind or hail. 
D)  damage to a neighbor's tree caused by your car. 
A)  injuries caused by a driver without insurance. 
B)  damage to your car in an accident for which you were at fault. 
C)  damage to your car caused by wind or hail. 
D)  damage to a neighbor's tree caused by your car.

Question 12

The liability component of your homeowner's policy will cover all of the following situations, except one. Which situation will not be covered?

Accepted Answer

A)  Your dog bites a guest and the guest sues you. 
B)  While your accountant is visiting you, she trips on your carpet and sues you. 
C)  Your neighbor who thinks you have promised to trim a tree in his yard sues you for not doing it. 
D)  An uninvited salesman walking up your sidewalk trips and falls. He sues you. 
A)  Your dog bites a guest and the guest sues you. 
B)  While your accountant is visiting you, she trips on your carpet and sues you. 
C)  Your neighbor who thinks you have promised to trim a tree in his yard sues you for not doing it. 
D)  An uninvited salesman walking up your sidewalk trips and falls. He sues you.

Question 13

Having a large deductible on your auto or homeowner's insurance is a form of

Accepted Answer

A)  managing risk. 
B)  self-insuring risk. 
C)  financial decision-making. 
D)  A, B and C are all correct. 
A)  managing risk. 
B)  self-insuring risk. 
C)  financial decision-making. 
D)  A, B and C are all correct.

Question 14

Renter's insurance covers your possessions and the structure of the house or condo you are renting.

Accepted Answer

A) True 
 B)False

Question 15

In general, insurance companies generate their revenues from

Accepted Answer

A)  receiving payments for policies. 
B)  investing the proceeds of premiums until the funds are needed to cover losses. 
C)  the increases in the value of their corporate stock. 
D)  Both A and B are correct. 
A)  receiving payments for policies. 
B)  investing the proceeds of premiums until the funds are needed to cover losses. 
C)  the increases in the value of their corporate stock. 
D)  Both A and B are correct.

Question 16

It is a good idea to list all of your personal assets, estimate the market value of each item, and then film the contents of your house with a video camera to be able to show proof of their existence.

Accepted Answer

A) True 
 B)False

Question 17

Once drivers are labeled as "high risk," they will not be able to get automobile insurance at any price.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not a characteristic of an umbrella policy?

Accepted Answer

A)  It provides additional liability insurance. 
B)  It replaces other policies. 
C)  It protects wealth. 
D)  It is optional coverage. 
A)  It provides additional liability insurance. 
B)  It replaces other policies. 
C)  It protects wealth. 
D)  It is optional coverage.

Question 19

People are more willing to purchase or increase their insurance coverage when

Accepted Answer

A)  economic conditions are favorable and incomes are lower. 
B)  economic conditions are favorable and incomes are higher. 
C)  economic conditions are weak and incomes are lower. 
D)  None of the above. 
A)  economic conditions are favorable and incomes are lower. 
B)  economic conditions are favorable and incomes are higher. 
C)  economic conditions are weak and incomes are lower. 
D)  None of the above.

Question 20

If you have a poor driving record, you may be forced to do all of the following, except

Accepted Answer

A)  accept the premium of any insurance company willing to insure you. 
B)  prove over several years that you have improved your driving habits. 
C)  refrain from filing a claim until your driving record has improved. 
D)  pay higher insurance premiums. 
A)  accept the premium of any insurance company willing to insure you. 
B)  prove over several years that you have improved your driving habits. 
C)  refrain from filing a claim until your driving record has improved. 
D)  pay higher insurance premiums.

The ________ is the amount that you will need to pay if your car is damaged in an accident that was your fault.

Of the following statements, which is not true regarding no-fault insurance?

Given the large number of uninsured drivers, uninsured motorist coverage is needed.

Which of the following is not covered in a standard homeowner's policy?

Liability insurance coverage would cost more for an expensive car than for an inexpensive car of the same age.

What three insurance components do automobile and homeowner's policies usually have in common?

Which of the following is not true regarding medical payments coverage?

Comprehensive coverage would cover financial losses due to

The liability component of your homeowner's policy will cover all of the following situations, except one. Which situation will not be covered?

Having a large deductible on your auto or homeowner's insurance is a form of

Renter's insurance covers your possessions and the structure of the house or condo you are renting.

In general, insurance companies generate their revenues from

It is a good idea to list all of your personal assets, estimate the market value of each item, and then film the contents of your house with a video camera to be able to show proof of their existence.

Once drivers are labeled as "high risk," they will not be able to get automobile insurance at any price.

Which of the following is not a characteristic of an umbrella policy?

People are more willing to purchase or increase their insurance coverage when

If you have a poor driving record, you may be forced to do all of the following, except

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

Exam 11: Auto and Homeowners Insurance

The ________ is the amount that you will need to pay if your car is damaged in an accident that was your fault.

Of the following statements, which is not true regarding no-fault insurance?

Given the large number of uninsured drivers, uninsured motorist coverage is needed.

Which of the following is not covered in a standard homeowner's policy?

Liability insurance coverage would cost more for an expensive car than for an inexpensive car of the same age.

What three insurance components do automobile and homeowner's policies usually have in common?

Which of the following is not true regarding medical payments coverage?

Comprehensive coverage would cover financial losses due to

The liability component of your homeowner's policy will cover all of the following situations, except one. Which situation will not be covered?

Having a large deductible on your auto or homeowner's insurance is a form of

Renter's insurance covers your possessions and the structure of the house or condo you are renting.

In general, insurance companies generate their revenues from

It is a good idea to list all of your personal assets, estimate the market value of each item, and then film the contents of your house with a video camera to be able to show proof of their existence.

Once drivers are labeled as "high risk," they will not be able to get automobile insurance at any price.

Which of the following is not a characteristic of an umbrella policy?

People are more willing to purchase or increase their insurance coverage when

If you have a poor driving record, you may be forced to do all of the following, except

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