Question 1

Collision and comprehensive coverage is optional in most provinces unless you are financing your car.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following is the most important reason to carry significant third party liability coverage?

Accepted Answer

A) It would provide medical and rehabilitation coverage for you and the passengers in your car,to the limit you select,and if insufficient,you would be required to pay the difference. 
B) It provides excess medical and rehabilitation coverage if you are not at fault. 
C) It provides excess coverage for accidents caused by uninsured and under insured motorists,when you are not at fault and if insufficient,you would be required to pay the difference. 
D) It provides coverage for any court ordered awards to injured parties if you are at fault and if your coverage is insufficient,you would be required to pay the difference. 
A) It would provide medical and rehabilitation coverage for you and the passengers in your car,to the limit you select,and if insufficient,you would be required to pay the difference. 
B) It provides excess medical and rehabilitation coverage if you are not at fault. 
C) It provides excess coverage for accidents caused by uninsured and under insured motorists,when you are not at fault and if insufficient,you would be required to pay the difference. 
D) It provides coverage for any court ordered awards to injured parties if you are at fault and if your coverage is insufficient,you would be required to pay the difference. D

Question 3

List four ways to reduce your homeowner's insurance premiums and categorize whether it is via sharing,reducing,avoiding or accepting.

Accepted Answer

Any four of the following:
•Increase your deductible - sharing (increasing risk to you,less to the insurance company)
•Improve protection for your home with better locks,alarms,shutters,etc.- reducing
•Use one insurer for all types of insurance to get a discount - sharing
•Stay with the same company at renewal time if the rate is good - sharing
•Shop around for good rates - sharing
•Don't make small claims - accepting more risks
•Choose basic coverage - accepting more risk yourself,or sharing less
•Do not get extra liability coverage - accepting

Question 4

One of the advantages of no-fault automobile insurance is that

Accepted Answer

A) it does not use the legal system so the overall costs are much lower. 
B) it results in higher jury awards to victims. 
C) the injured receives immediate medical treatment through their own insurance. 
D) the drivers who are at fault face no penalties for their risky behaviours. 
A) it does not use the legal system so the overall costs are much lower. 
B) it results in higher jury awards to victims. 
C) the injured receives immediate medical treatment through their own insurance. 
D) the drivers who are at fault face no penalties for their risky behaviours.

Question 5

Your home insurance provides for replacement value for personal property losses.If your china hutch (ten year depreciation)was vandalized and completely destroyed and cost $400 four years ago,but a new one will cost $600,how much will the insurance company pay?

Accepted Answer

A) $400 
B) $240 
C) $600 
D) Nothing,vandalism is not covered 
A) $400 
B) $240 
C) $600 
D) Nothing,vandalism is not covered

Question 6

Insurance agents who work for one particular company are called

Accepted Answer

A) company agents. 
B) captive agents. 
C) independent agents. 
D) insurance brokers. 
A) company agents. 
B) captive agents. 
C) independent agents. 
D) insurance brokers.

Question 7

If you cause an accident resulting in $2000 damage to your car and have collision coverage with $500 deductible,which of the following statements is True?

Accepted Answer

A) Your insurance company will pay $2000 and your insurance premiums will go up $500. 
B) You will pay $1500. 
C) Your insurance company will pay $1500. 
D) The other insurance company will pay $500 and your company will pay $1500. 
A) Your insurance company will pay $2000 and your insurance premiums will go up $500. 
B) You will pay $1500. 
C) Your insurance company will pay $1500. 
D) The other insurance company will pay $500 and your company will pay $1500.

Question 8

If Jack damages his car by skidding on ice and colliding with a fence,his property damage liability would cover the damage to his car.

Accepted Answer

A) True 
 B)False

Question 9

While renter's insurance would reimburse you if you had to replace furniture damaged in a fire,it would not pay for the medical expenses for a friend who was injured in your home.

Accepted Answer

A) True 
 B)False

Question 10

Comprehensive coverage insures Peter against damage to his car that results from something such as hail or vandalism.

Accepted Answer

A) True 
 B)False

Question 11

Which section of auto insurance would pay for medical care for people who were injured in your automobile as a result of an accident that was your fault?

Accepted Answer

A) Accident benefits 
B) Bodily injury liability coverage 
C) Insured automobile coverage 
D) Third party liability coverage 
A) Accident benefits 
B) Bodily injury liability coverage 
C) Insured automobile coverage 
D) Third party liability coverage

Question 12

Insurance should be considered in some circumstances even when there is only a small likelihood than an event that could cause a financial loss would occur.

Accepted Answer

A) True 
 B)False

Question 13

An HDTV was purchased for $6500 and is now three years old.If it is stolen and it is deemed to have a life of five years,the insurance company will settle for $3000 under a cash value policy.

Accepted Answer

A) True 
 B)False

Question 14

What would be the main benefit to Peter on the option of including a personal property floater in his insurance policy?

Accepted Answer

A) Reduce the amount of deductible in his insurance claims. 
B) Extend liability insurance protection to his boat and secondary properties. 
C) Receive replacement cost coverage in the event of insurance claims. 
D) Extend his homeowner's insurance policy to cover certain expensive assets. 
A) Reduce the amount of deductible in his insurance claims. 
B) Extend liability insurance protection to his boat and secondary properties. 
C) Receive replacement cost coverage in the event of insurance claims. 
D) Extend his homeowner's insurance policy to cover certain expensive assets.

Question 15

You are not at fault in a car accident that causes you total damages for injuries and lost employment in the amount of $550 000.If you have under insured motorist coverage and the other driver who is at fault has coverage for $500 000,what will you be able to claim?

Accepted Answer

A) The other driver's insurance company will pay $550 000. 
B) Your auto insurance company will cover $550 000. 
C) The other driver's insurance company will pay $500 000 and your health coverage will pay $50 000. 
D) The other driver's insurance company will pay $500 000 and your auto insurance will pay ?$50 000. 
A) The other driver's insurance company will pay $550 000. 
B) Your auto insurance company will cover $550 000. 
C) The other driver's insurance company will pay $500 000 and your health coverage will pay $50 000. 
D) The other driver's insurance company will pay $500 000 and your auto insurance will pay ?$50 000.

Question 16

Independent insurance agents are those that work for one particular company.

Accepted Answer

A) True 
 B)False

Question 17

Getting the flu vaccine is an example of

Accepted Answer

A) avoiding risk. 
B) reducing risk. 
C) accepting risk. 
D) transferring risk. 
A) avoiding risk. 
B) reducing risk. 
C) accepting risk. 
D) transferring risk.

Question 18

Independent insurance agents,sometimes called brokers,

Accepted Answer

A) work for just one insurance company. 
B) represent many different insurance companies. 
C) work for only two or three companies. 
D) are self-employed and represent their own companies. 
A) work for just one insurance company. 
B) represent many different insurance companies. 
C) work for only two or three companies. 
D) are self-employed and represent their own companies.

Question 19

What is the name of the document which needs to be completed for additional personal property insurance not adequately covered by your homeowner's policy?

Accepted Answer

A) A general liability agreement 
B) A personal property floater 
C) Extra value full replacement rider 
D) An endorsement 
A) A general liability agreement 
B) A personal property floater 
C) Extra value full replacement rider 
D) An endorsement

Question 20

Which of the following statements about uninsured motorist coverage is True?

Accepted Answer

A) This coverage applies to bodily injury when you are in an accident with an uninsured driver,regardless of who was at fault. 
B) It does not apply to accidents caused by a hit-and-run driver. 
C) It covers bodily injury when an accident is caused by another driver who is not insured. 
D) It does not pay out when a driver who is at fault has an insurance company that goes bankrupt. 
A) This coverage applies to bodily injury when you are in an accident with an uninsured driver,regardless of who was at fault. 
B) It does not apply to accidents caused by a hit-and-run driver. 
C) It covers bodily injury when an accident is caused by another driver who is not insured. 
D) It does not pay out when a driver who is at fault has an insurance company that goes bankrupt.

Collision and comprehensive coverage is optional in most provinces unless you are financing your car.

Which of the following is the most important reason to carry significant third party liability coverage?

List four ways to reduce your homeowner's insurance premiums and categorize whether it is via sharing,reducing,avoiding or accepting.

One of the advantages of no-fault automobile insurance is that

Your home insurance provides for replacement value for personal property losses.If your china hutch (ten year depreciation)was vandalized and completely destroyed and cost $400 four years ago,but a new one will cost $600,how much will the insurance company pay?

Insurance agents who work for one particular company are called

If you cause an accident resulting in $2000 damage to your car and have collision coverage with $500 deductible,which of the following statements is True?

If Jack damages his car by skidding on ice and colliding with a fence,his property damage liability would cover the damage to his car.

While renter's insurance would reimburse you if you had to replace furniture damaged in a fire,it would not pay for the medical expenses for a friend who was injured in your home.

Comprehensive coverage insures Peter against damage to his car that results from something such as hail or vandalism.

Which section of auto insurance would pay for medical care for people who were injured in your automobile as a result of an accident that was your fault?

Insurance should be considered in some circumstances even when there is only a small likelihood than an event that could cause a financial loss would occur.

An HDTV was purchased for $6500 and is now three years old.If it is stolen and it is deemed to have a life of five years,the insurance company will settle for $3000 under a cash value policy.

What would be the main benefit to Peter on the option of including a personal property floater in his insurance policy?

You are not at fault in a car accident that causes you total damages for injuries and lost employment in the amount of $550 000.If you have under insured motorist coverage and the other driver who is at fault has coverage for $500 000,what will you be able to claim?

Independent insurance agents are those that work for one particular company.

Getting the flu vaccine is an example of

Independent insurance agents,sometimes called brokers,

What is the name of the document which needs to be completed for additional personal property insurance not adequately covered by your homeowner's policy?

Which of the following statements about uninsured motorist coverage is True?

Overview of a Financial Plan

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning with Personal Financial Statements

Tools for Financial Planning - Using Tax Concepts for Planning

Managing Your Financial Resources - Banking Services and Managing Your Money

Managing Your Financial Resources - Assessing, Managing, and Securing Your Credit

Managing Your Financial Resources - Purchasing and Financing a Home

Protecting Your Wealth - Health and Life Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

Filters

Exam 8: Protecting Your Wealth - Auto and Homeowner's Insurance

Collision and comprehensive coverage is optional in most provinces unless you are financing your car.

Which of the following is the most important reason to carry significant third party liability coverage?

List four ways to reduce your homeowner's insurance premiums and categorize whether it is via sharing,reducing,avoiding or accepting.

One of the advantages of no-fault automobile insurance is that

Your home insurance provides for replacement value for personal property losses.If your china hutch (ten year depreciation)was vandalized and completely destroyed and cost $400 four years ago,but a new one will cost $600,how much will the insurance company pay?

Insurance agents who work for one particular company are called

If you cause an accident resulting in $2000 damage to your car and have collision coverage with $500 deductible,which of the following statements is True?

If Jack damages his car by skidding on ice and colliding with a fence,his property damage liability would cover the damage to his car.

While renter's insurance would reimburse you if you had to replace furniture damaged in a fire,it would not pay for the medical expenses for a friend who was injured in your home.

Comprehensive coverage insures Peter against damage to his car that results from something such as hail or vandalism.

Which section of auto insurance would pay for medical care for people who were injured in your automobile as a result of an accident that was your fault?

Insurance should be considered in some circumstances even when there is only a small likelihood than an event that could cause a financial loss would occur.

An HDTV was purchased for $6500 and is now three years old.If it is stolen and it is deemed to have a life of five years,the insurance company will settle for $3000 under a cash value policy.

What would be the main benefit to Peter on the option of including a personal property floater in his insurance policy?

You are not at fault in a car accident that causes you total damages for injuries and lost employment in the amount of $550 000.If you have under insured motorist coverage and the other driver who is at fault has coverage for $500 000,what will you be able to claim?

Independent insurance agents are those that work for one particular company.

Getting the flu vaccine is an example of

Independent insurance agents,sometimes called brokers,

What is the name of the document which needs to be completed for additional personal property insurance not adequately covered by your homeowner's policy?

Which of the following statements about uninsured motorist coverage is True?

Overview of a Financial Plan

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning with Personal Financial Statements

Tools for Financial Planning - Using Tax Concepts for Planning

Managing Your Financial Resources - Banking Services and Managing Your Money

Managing Your Financial Resources - Assessing, Managing, and Securing Your Credit

Managing Your Financial Resources - Purchasing and Financing a Home

Protecting Your Wealth - Health and Life Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

Filters