Question 1

Which of the following coverage's would pay for medical care for people who were injured in your automobile?

Accepted Answer

A) comprehensive 
B) bodily injury liability 
C) collision 
D) accident benefits 
E) no-fault insurance 
A) comprehensive 
B) bodily injury liability 
C) collision 
D) accident benefits 
E) no-fault insurance

Question 2

While cleaning your home, a worker damages some furniture.You take action against the worker's employer to cover the cost of the damage.This is an example of a(n) ____________ liability.

Accepted Answer

A) umbrella 
B) assigned 
C) common situation 
D) peril 
E) vicarious 
A) umbrella 
B) assigned 
C) common situation 
D) peril 
E) vicarious

Question 3

Vicarious liability occurs when one person is held responsible for the actions of another person.

Accepted Answer

A) True 
 B)False

Question 4

The driver classification category is based on automobile style, model, and value of the vehicle.

Accepted Answer

A) True 
 B)False

Question 5

Risk is

Accepted Answer

A) the chance that something may be lost. 
B) is the cause of a possible loss. 
C) the increased likelihood of loss through some peril. 
D) uncertainties of direct or indirect losses to property due to fire, windstorms, accidents, theft, and other hazards. 
E) loss possibilities due to negligence resulting in bodily harm or property damage to others. 
A) the chance that something may be lost. 
B) is the cause of a possible loss. 
C) the increased likelihood of loss through some peril. 
D) uncertainties of direct or indirect losses to property due to fire, windstorms, accidents, theft, and other hazards. 
E) loss possibilities due to negligence resulting in bodily harm or property damage to others.

Question 6

Accident benefits automobile insurance coverage pays for the costs of injuries to persons in the driver's vehicle.

Accepted Answer

A) True 
 B)False

Question 7

What personal property is specifically excluded from coverage by a homeowner's insurance?

Accepted Answer

A) Washers and dryers 
B) Stoves 
C) Rental portion of the home 
D) Inexpensive Electronics 
E) Carpet 
A) Washers and dryers 
B) Stoves 
C) Rental portion of the home 
D) Inexpensive Electronics 
E) Carpet

Question 8

Wind damage occurs to your car costing $1,000 to repair.If you have a $300 deductible for collision and full coverage for comprehensive, what portion of the claim will the insurance company pay?

Accepted Answer

A) $300 
B) $1,300 
C) $500 
D) $700 
E) $800 
A) $300 
B) $1,300 
C) $500 
D) $700 
E) $800

Question 9

Tenant's insurance would include coverage for all of the following except

Accepted Answer

A) additional living expense coverage. 
B) personal liability. 
C) automobile theft. 
D) personal property. 
E) protection against financial loss due to damage. 
A) additional living expense coverage. 
B) personal liability. 
C) automobile theft. 
D) personal property. 
E) protection against financial loss due to damage.

Question 10

A rider is an addition of coverage to a standard insurance policy.

Accepted Answer

A) True 
 B)False

Question 11

An accident caused by an unidentified person is covered by what type of auto insurance?

Accepted Answer

A) Bodily injury 
B) Accident Benefits 
C) Uninsured motorist's protection 
D) Property damage 
E) Comprehensive physical damage 
A) Bodily injury 
B) Accident Benefits 
C) Uninsured motorist's protection 
D) Property damage 
E) Comprehensive physical damage

Question 12

Anne has an expensive diamond ring.Which coverage from the following list would pay for damage or theft of this item?

Accepted Answer

A) an umbrella policy 
B) a household inventory 
C) additional living expense coverage 
D) a personal articles endorsement 
E) a coinsurance floater 
A) an umbrella policy 
B) a household inventory 
C) additional living expense coverage 
D) a personal articles endorsement 
E) a coinsurance floater

Question 13

What type of liability is present when a person is held responsible for the actions of another?

Accepted Answer

A) Strict 
B) Vicarious 
C) Unlimited 
D) Limited 
E) Negligence 
A) Strict 
B) Vicarious 
C) Unlimited 
D) Limited 
E) Negligence

Question 14

If you have a $500 claim resulting from a fire in your home and your policy stipulates that your deductible is $500, then the insurance company will pay you

Accepted Answer

A) $0 
B) $100 
C) $150 
D) $250 
E) $500 
A) $0 
B) $100 
C) $150 
D) $250 
E) $500

Question 15

If you have a $2,000 claim resulting from a fire in your home and your policy stipulates that your deductible is $500, then the insurance company will pay you

Accepted Answer

A) $2,000 
B) $1,500 
C) $1,000 
D) $500 
E) $2,500 
A) $2,000 
B) $1,500 
C) $1,000 
D) $500 
E) $2,500

Question 16

In the insurance industry, the term "peril" represents ________________.

Accepted Answer

A) the chance that something may be lost 
B) the cause of the possible loss 
C) a habit that increases the likelihood of loss 
D) the actual loss experienced 
E) your record of past losses 
A) the chance that something may be lost 
B) the cause of the possible loss 
C) a habit that increases the likelihood of loss 
D) the actual loss experienced 
E) your record of past losses

Question 17

Which of the following is likely to increase your car insurance premium? I.You live in a rural area.
II)You are over 70.
III)You usually carry several passengers.

Accepted Answer

A) I and II, only 
B) II and III, only 
C) I and III, only 
D) I, II and III 
E) I only 
A) I and II, only 
B) II and III, only 
C) I and III, only 
D) I, II and III 
E) I only

Question 18

A system that allows insurance companies to provide coverage to several individuals with poor driving records is referred to as

Accepted Answer

A) no-fault insurance. 
B) an assigned risk pool. 
C) premium discounts. 
D) comprehensive coverage. 
E) collision coverage. 
A) no-fault insurance. 
B) an assigned risk pool. 
C) premium discounts. 
D) comprehensive coverage. 
E) collision coverage.

Question 19

Which of the following is a system in which drivers involved in an accident collect medical expenses, lost wages, and related injury costs from their own insurance company?

Accepted Answer

A) assigned risk pool 
B) no-fault insurance 
C) comprehensive system 
D) financial responsibility coverage 
E) uninsured motorist's protection 
A) assigned risk pool 
B) no-fault insurance 
C) comprehensive system 
D) financial responsibility coverage 
E) uninsured motorist's protection

Question 20

The higher the deductible you choose for your car insurance, the higher the premium.

Accepted Answer

A) True 
 B)False

Which of the following coverage's would pay for medical care for people who were injured in your automobile?

While cleaning your home, a worker damages some furniture.You take action against the worker's employer to cover the cost of the damage.This is an example of a(n) ____________ liability.

Vicarious liability occurs when one person is held responsible for the actions of another person.

The driver classification category is based on automobile style, model, and value of the vehicle.

Risk is

Accident benefits automobile insurance coverage pays for the costs of injuries to persons in the driver's vehicle.

What personal property is specifically excluded from coverage by a homeowner's insurance?

Wind damage occurs to your car costing $1,000 to repair.If you have a $300 deductible for collision and full coverage for comprehensive, what portion of the claim will the insurance company pay?

Tenant's insurance would include coverage for all of the following except

A rider is an addition of coverage to a standard insurance policy.

An accident caused by an unidentified person is covered by what type of auto insurance?

Anne has an expensive diamond ring.Which coverage from the following list would pay for damage or theft of this item?

What type of liability is present when a person is held responsible for the actions of another?

If you have a $500 claim resulting from a fire in your home and your policy stipulates that your deductible is $500, then the insurance company will pay you

If you have a $2,000 claim resulting from a fire in your home and your policy stipulates that your deductible is $500, then the insurance company will pay you

In the insurance industry, the term "peril" represents ________________.

Which of the following is likely to increase your car insurance premium? I.You live in a rural area. II)You are over 70. III)You usually carry several passengers.

A system that allows insurance companies to provide coverage to several individuals with poor driving records is referred to as

Which of the following is a system in which drivers involved in an accident collect medical expenses, lost wages, and related injury costs from their own insurance company?

The higher the deductible you choose for your car insurance, the higher the premium.

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

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Exam 8: Home and Automobile Insurance

Which of the following coverage's would pay for medical care for people who were injured in your automobile?

While cleaning your home, a worker damages some furniture.You take action against the worker's employer to cover the cost of the damage.This is an example of a(n) ____________ liability.

Vicarious liability occurs when one person is held responsible for the actions of another person.

The driver classification category is based on automobile style, model, and value of the vehicle.

Risk is

Accident benefits automobile insurance coverage pays for the costs of injuries to persons in the driver's vehicle.

What personal property is specifically excluded from coverage by a homeowner's insurance?

Wind damage occurs to your car costing $1,000 to repair.If you have a $300 deductible for collision and full coverage for comprehensive, what portion of the claim will the insurance company pay?

Tenant's insurance would include coverage for all of the following except

A rider is an addition of coverage to a standard insurance policy.

An accident caused by an unidentified person is covered by what type of auto insurance?

Anne has an expensive diamond ring.Which coverage from the following list would pay for damage or theft of this item?

What type of liability is present when a person is held responsible for the actions of another?

If you have a $500 claim resulting from a fire in your home and your policy stipulates that your deductible is $500, then the insurance company will pay you

If you have a $2,000 claim resulting from a fire in your home and your policy stipulates that your deductible is $500, then the insurance company will pay you

In the insurance industry, the term "peril" represents ________________.

Which of the following is likely to increase your car insurance premium? I.You live in a rural area. II)You are over 70. III)You usually carry several passengers.

A system that allows insurance companies to provide coverage to several individuals with poor driving records is referred to as

Which of the following is a system in which drivers involved in an accident collect medical expenses, lost wages, and related injury costs from their own insurance company?

The higher the deductible you choose for your car insurance, the higher the premium.

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters