Question 1

The comprehensive form of homeowner's insurance includes coverage for damage due to floods.

Accepted Answer

A) True 
 B)False

Question 2

Susan Bize owns a home in Edmond, Oklahoma. She has a coffee maker in the home that has been recalled because it is likely to start fires. The coffee maker is an example of a:

Accepted Answer

A)  peril. 
B)  hazard. 
C)  risk. 
D)  premium. 
E)  deductible. 
A)  peril. 
B)  hazard. 
C)  risk. 
D)  premium. 
E)  deductible.

Question 3

Increased liability insurance is available with an umbrella policy.

Accepted Answer

A) True 
 B)False

Question 4

No-fault insurance systems have consistently reduced the time and costs involved in settling claims.

Accepted Answer

A) True 
 B)False

Question 5

Hermione Granger borrowed her best friend's car and was in an accident. She was at fault. The car was totaled. What part of Hermione's automobile insurance policy would cover the damage to her friend's car?

Accepted Answer

A)  Bodily injury liability 
B)  Medical payments coverage 
C)  Property damage liability 
D)  Collision 
E)  Comprehensive physical damage 
A)  Bodily injury liability 
B)  Medical payments coverage 
C)  Property damage liability 
D)  Collision 
E)  Comprehensive physical damage

Question 6

Personal risks are the uncertainties surrounding the loss of income or life due to all except:

Accepted Answer

A)  professional misconduct. 
B)  premature death. 
C)  illness. 
D)  disability. 
E)  unemployment. 
A)  professional misconduct. 
B)  premature death. 
C)  illness. 
D)  disability. 
E)  unemployment.

Question 7

Explain the difference between strict and vicarious liability. Provide examples.

Accepted Answer

Strict liability is present when a perso

Question 8

Most speculative risks are considered to be uninsurable.

Accepted Answer

A) True 
 B)False

Question 9

Albert Finney owns a home in Pompano Beach, Florida. His house is broken into and the burglar steals his computer, his big screen TV, his stereo equipment, and his toaster. What part of his homeowner's insurance would cover this loss?

Accepted Answer

A)  Buildings and other structures 
B)  Additional living expenses 
C)  Personal property 
D)  Personal liability 
E)  Specialized coverage 
A)  Buildings and other structures 
B)  Additional living expenses 
C)  Personal property 
D)  Personal liability 
E)  Specialized coverage

Question 10

Which of the following would be covered by a home insurance policy?

Accepted Answer

A)  Hospital expenses for surgery 
B)  Damage to another person's car when driving 
C)  Accidental injury to a coworker on the job 
D)  Wind damage to your roof 
E)  Theft of business supplies from your office 
A)  Hospital expenses for surgery 
B)  Damage to another person's car when driving 
C)  Accidental injury to a coworker on the job 
D)  Wind damage to your roof 
E)  Theft of business supplies from your office

Question 11

Thad Joslin was judged at fault in an automobile accident. Three others were awarded damages of $150,000, $75,000, and $75,000. Thad has 100/300 bodily injury liability coverage. What amount, if any, would not be covered by his insurance?

Accepted Answer

A)  $150,000 
B)  $100,000 
C)  $50,000 
D)  $25,000 
E)  None. The total amount would be covered by insurance. 
A)  $150,000 
B)  $100,000 
C)  $50,000 
D)  $25,000 
E)  None. The total amount would be covered by insurance.

Question 12

A home made of wood is more expensive to insure than a comparable brick structure.

Accepted Answer

A) True 
 B)False

Question 13

What factors affect the cost of home insurance?

Accepted Answer

The main influences on home insurance co

Question 14

Which of the following might qualify Amy Farmer for a premium discount on her automobile insurance?

Accepted Answer

A)  Completing a driver's training program 
B)  Earning straight A's in college 
C)  Installing an alarm system in her car 
D)  Participating in a carpool five days a week 
E)  All of these might qualify Amy for a discount. 
A)  Completing a driver's training program 
B)  Earning straight A's in college 
C)  Installing an alarm system in her car 
D)  Participating in a carpool five days a week 
E)  All of these might qualify Amy for a discount.

Question 15

Larry Foster has bought a car with front and side airbags and antilock brakes. How is Larry managing his risk?

Accepted Answer

A)  Avoidance 
B)  Reduction 
C)  Assumption 
D)  Shifting 
E)  Development 
A)  Avoidance 
B)  Reduction 
C)  Assumption 
D)  Shifting 
E)  Development

Question 16

Property losses can be categorized into destruction of property, and losses due to:

Accepted Answer

A)  robbery. 
B)  burglary. 
C)  vandalism. 
D)  arson. 
E)  All of these 
A)  robbery. 
B)  burglary. 
C)  vandalism. 
D)  arson. 
E)  All of these

Question 17

Joan Stone owns a home in Edmond, Oklahoma. She is worried her property might be damaged due to some unforeseen event. This worry about a loss is an example of a:

Accepted Answer

A)  peril. 
B)  hazard. 
C)  risk. 
D)  premium. 
E)  policy. 
A)  peril. 
B)  hazard. 
C)  risk. 
D)  premium. 
E)  policy.

Question 18

Craig Brown owns a home in San Francisco, California. There is a major earthquake and his house is damaged by the earthquake. What type of insurance would he have to have to cover this loss?

Accepted Answer

A)  Building and other structures 
B)  Additional living expenses 
C)  Personal property 
D)  Personal liability 
E)  Specialized coverage 
A)  Building and other structures 
B)  Additional living expenses 
C)  Personal property 
D)  Personal liability 
E)  Specialized coverage

Question 19

William Bennett owns a home in Oviedo, Florida. There was a fire in his home and he and his family had to move to a motel until his home could be fixed. What part of his homeowner's insurance policy would cover the cost of the motel?

Accepted Answer

A)  Buildings and other structures 
B)  Additional living expenses 
C)  Personal property 
D)  Personal liability 
E)  Specialized coverage 
A)  Buildings and other structures 
B)  Additional living expenses 
C)  Personal property 
D)  Personal liability 
E)  Specialized coverage

Question 20

Increased liability insurance is available with:

Accepted Answer

A)  an umbrella policy. 
B)  a personal property floater. 
C)  an endorsement. 
D)  a coinsurance clause. 
E)  All of these 
A)  an umbrella policy. 
B)  a personal property floater. 
C)  an endorsement. 
D)  a coinsurance clause. 
E)  All of these

The comprehensive form of homeowner's insurance includes coverage for damage due to floods.

Susan Bize owns a home in Edmond, Oklahoma. She has a coffee maker in the home that has been recalled because it is likely to start fires. The coffee maker is an example of a:

Increased liability insurance is available with an umbrella policy.

No-fault insurance systems have consistently reduced the time and costs involved in settling claims.

Hermione Granger borrowed her best friend's car and was in an accident. She was at fault. The car was totaled. What part of Hermione's automobile insurance policy would cover the damage to her friend's car?

Personal risks are the uncertainties surrounding the loss of income or life due to all except:

Explain the difference between strict and vicarious liability. Provide examples.

Most speculative risks are considered to be uninsurable.

Albert Finney owns a home in Pompano Beach, Florida. His house is broken into and the burglar steals his computer, his big screen TV, his stereo equipment, and his toaster. What part of his homeowner's insurance would cover this loss?

Which of the following would be covered by a home insurance policy?

Thad Joslin was judged at fault in an automobile accident. Three others were awarded damages of $150,000, $75,000, and $75,000. Thad has 100/300 bodily injury liability coverage. What amount, if any, would not be covered by his insurance?

A home made of wood is more expensive to insure than a comparable brick structure.

What factors affect the cost of home insurance?

Which of the following might qualify Amy Farmer for a premium discount on her automobile insurance?

Larry Foster has bought a car with front and side airbags and antilock brakes. How is Larry managing his risk?

Property losses can be categorized into destruction of property, and losses due to:

Joan Stone owns a home in Edmond, Oklahoma. She is worried her property might be damaged due to some unforeseen event. This worry about a loss is an example of a:

Craig Brown owns a home in San Francisco, California. There is a major earthquake and his house is damaged by the earthquake. What type of insurance would he have to have to cover this loss?

William Bennett owns a home in Oviedo, Florida. There was a fire in his home and he and his family had to move to a motel until his home could be fixed. What part of his homeowner's insurance policy would cover the cost of the motel?

Increased liability insurance is available with:

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

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Exam 10: Property and Motor Vehicle Insurance

The comprehensive form of homeowner's insurance includes coverage for damage due to floods.

Susan Bize owns a home in Edmond, Oklahoma. She has a coffee maker in the home that has been recalled because it is likely to start fires. The coffee maker is an example of a:

Increased liability insurance is available with an umbrella policy.

No-fault insurance systems have consistently reduced the time and costs involved in settling claims.

Hermione Granger borrowed her best friend's car and was in an accident. She was at fault. The car was totaled. What part of Hermione's automobile insurance policy would cover the damage to her friend's car?

Personal risks are the uncertainties surrounding the loss of income or life due to all except:

Explain the difference between strict and vicarious liability. Provide examples.

Most speculative risks are considered to be uninsurable.

Albert Finney owns a home in Pompano Beach, Florida. His house is broken into and the burglar steals his computer, his big screen TV, his stereo equipment, and his toaster. What part of his homeowner's insurance would cover this loss?

Which of the following would be covered by a home insurance policy?

Thad Joslin was judged at fault in an automobile accident. Three others were awarded damages of $150,000, $75,000, and $75,000. Thad has 100/300 bodily injury liability coverage. What amount, if any, would not be covered by his insurance?

A home made of wood is more expensive to insure than a comparable brick structure.

What factors affect the cost of home insurance?

Which of the following might qualify Amy Farmer for a premium discount on her automobile insurance?

Larry Foster has bought a car with front and side airbags and antilock brakes. How is Larry managing his risk?

Property losses can be categorized into destruction of property, and losses due to:

Joan Stone owns a home in Edmond, Oklahoma. She is worried her property might be damaged due to some unforeseen event. This worry about a loss is an example of a:

Craig Brown owns a home in San Francisco, California. There is a major earthquake and his house is damaged by the earthquake. What type of insurance would he have to have to cover this loss?

William Bennett owns a home in Oviedo, Florida. There was a fire in his home and he and his family had to move to a motel until his home could be fixed. What part of his homeowner's insurance policy would cover the cost of the motel?

Increased liability insurance is available with:

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

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