Question 1

Which statement is not true about no-fault insurance systems?

Accepted Answer

A)  They are intended to reduce the time and cost associated with the settlement of automobile injury cases. 
B)  The systems vary from state to state. 
C)  Some states include property damage in the coverage. 
D)  Some states set limits on medical expenses, lost wages, and other claim settlements. 
E)  In recent years, all 50 states had some variation of the system. 
A)  They are intended to reduce the time and cost associated with the settlement of automobile injury cases. 
B)  The systems vary from state to state. 
C)  Some states include property damage in the coverage. 
D)  Some states set limits on medical expenses, lost wages, and other claim settlements. 
E)  In recent years, all 50 states had some variation of the system.

Question 2

The additional living expenses component of a home insurance policy is designed to:

Accepted Answer

A)  pay for temporary housing while your home is repaired. 
B)  cover damage to property while away from home. 
C)  reimburse a homeowner for damage done by a visitor. 
D)  pay for medical expenses of people injured on your property. 
E)  pay for repairs caused by fire or other hazards. 
A)  pay for temporary housing while your home is repaired. 
B)  cover damage to property while away from home. 
C)  reimburse a homeowner for damage done by a visitor. 
D)  pay for medical expenses of people injured on your property. 
E)  pay for repairs caused by fire or other hazards.

Question 3

Another term for liability coverage that protects you from claims if a client holds you responsible for errors or you fail to perform as promised is:

Accepted Answer

A)  umbrella policy. 
B)  personal property floater. 
C)  errors and omissions. 
D)  endorsement. 
E)  self-insurance. 
A)  umbrella policy. 
B)  personal property floater. 
C)  errors and omissions. 
D)  endorsement. 
E)  self-insurance.

Question 4

Home insurance costs are affected most directly by:

Accepted Answer

A)  the profits of the insurance company. 
B)  insurance agents' commission. 
C)  government regulations that set premiums. 
D)  processing costs of claims. 
E)  the number of claims in an area. 
A)  the profits of the insurance company. 
B)  insurance agents' commission. 
C)  government regulations that set premiums. 
D)  processing costs of claims. 
E)  the number of claims in an area.

Question 5

The uncertainties of direct and indirect losses to personal or real property due to fire, wind, accident, theft, etc., are called ____________ risks.

Accepted Answer

A)  personal 
B)  business 
C)  property 
D)  liability 
E)  speculative 
A)  personal 
B)  business 
C)  property 
D)  liability 
E)  speculative

Question 6

Which form of homeowner's policy provides coverage for the most risks?

Accepted Answer

A)  Special 
B)  Basic 
C)  Broad 
D)  Tenants 
E)  Modified coverage 
A)  Special 
B)  Basic 
C)  Broad 
D)  Tenants 
E)  Modified coverage

Question 7

Georgette Valentine has expensive photography equipment for use in her hobby. Which one of the following types of coverage would pay for damage or theft of this equipment?

Accepted Answer

A)  Umbrella policy 
B)  Personal liability 
C)  Additional living expense coverage 
D)  Personal property floater 
E)  Coinsurance floater 
A)  Umbrella policy 
B)  Personal liability 
C)  Additional living expense coverage 
D)  Personal property floater 
E)  Coinsurance floater

Question 8

Which one of the following coverages would pay for medical care for people who were injured in your automobile?

Accepted Answer

A)  Medical payments 
B)  Bodily injury liability 
C)  Collision 
D)  Uninsured coverage 
E)  Underinsured coverage 
A)  Medical payments 
B)  Bodily injury liability 
C)  Collision 
D)  Uninsured coverage 
E)  Underinsured coverage

Question 9

Personal risks, property risks, and liability risks are types of ________ risk.

Accepted Answer

A)  speculative 
B)  avoided 
C)  assumed 
D)  pure 
E)  reduced 
A)  speculative 
B)  avoided 
C)  assumed 
D)  pure 
E)  reduced

Question 10

What type of coverage in a home insurance policy is designed to pay for legal action taken against a homeowner who may be legally responsible for injury or property damage of others?

Accepted Answer

A)  Medical payments 
B)  Liability 
C)  Floater 
D)  Comprehensive 
E)  Personal property 
A)  Medical payments 
B)  Liability 
C)  Floater 
D)  Comprehensive 
E)  Personal property

Question 11

The legal responsibility for the financial cost of another person's losses or injuries is referred to as:

Accepted Answer

A)  theft. 
B)  robbery. 
C)  liability. 
D)  assigned risk. 
E)  collusion. 
A)  theft. 
B)  robbery. 
C)  liability. 
D)  assigned risk. 
E)  collusion.

Question 12

Defective house wiring is an example of a:

Accepted Answer

A)  hazard. 
B)  peril. 
C)  risk. 
D)  speculation. 
E)  planned danger. 
A)  hazard. 
B)  peril. 
C)  risk. 
D)  speculation. 
E)  planned danger.

Question 13

Which one of the following insurance policy provisions requires the insured to pay for part of the loss if the property is not insured for the specified percentage of replacement value?

Accepted Answer

A)  Personal property floater 
B)  An endorsement 
C)  Coinsurance clause 
D)  Umbrella coverage 
E)  Assigned risk clause 
A)  Personal property floater 
B)  An endorsement 
C)  Coinsurance clause 
D)  Umbrella coverage 
E)  Assigned risk clause

Question 14

Which one of the following would not be considered personal property by a homeowner's insurance policy?

Accepted Answer

A)  Furniture 
B)  Jewelry 
C)  Outside deck 
D)  Computer lost while on vacation 
E)  iPod 
A)  Furniture 
B)  Jewelry 
C)  Outside deck 
D)  Computer lost while on vacation 
E)  iPod

Question 15

Kevin Brown rides his bicycle to work so that he doesn't have to worry about getting in a car accident. How is Kevin managing his risk?

Accepted Answer

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

Question 16

Evan McWilliams accidentally collided with a car driven by Francis Sullivan. It was Evan's fault and Francis was seriously injured and had to spend the night in the hospital. What part of Evan's automobile insurance policy would cover Francis's injuries?

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 17

The most common method of dealing with risk is:

Accepted Answer

A)  risk avoidance. 
B)  risk reduction. 
C)  risk shifting. 
D)  risk assumption. 
E)  None of these 
A)  risk avoidance. 
B)  risk reduction. 
C)  risk shifting. 
D)  risk assumption. 
E)  None of these

Question 18

What does the term subrogation mean as it relates to motor vehicle property damage coverage?

Accepted Answer

Subrogation is defined as the

Question 19

A system that requires each insurance company operating in a state to provide coverage to individuals who have been unable to obtain other insurance is referred to as:

Accepted Answer

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

Question 20

Possible losses due to negligence resulting in bodily harm or property damage to others are called ____________ risks.

Accepted Answer

A)  speculative 
B)  liability 
C)  property 
D)  personal 
E)  commercial 
A)  speculative 
B)  liability 
C)  property 
D)  personal 
E)  commercial

Which statement is not true about no-fault insurance systems?

The additional living expenses component of a home insurance policy is designed to:

Another term for liability coverage that protects you from claims if a client holds you responsible for errors or you fail to perform as promised is:

Home insurance costs are affected most directly by:

The uncertainties of direct and indirect losses to personal or real property due to fire, wind, accident, theft, etc., are called ____________ risks.

Which form of homeowner's policy provides coverage for the most risks?

Georgette Valentine has expensive photography equipment for use in her hobby. Which one of the following types of coverage would pay for damage or theft of this equipment?

Which one of the following coverages would pay for medical care for people who were injured in your automobile?

Personal risks, property risks, and liability risks are types of ________ risk.

What type of coverage in a home insurance policy is designed to pay for legal action taken against a homeowner who may be legally responsible for injury or property damage of others?

The legal responsibility for the financial cost of another person's losses or injuries is referred to as:

Defective house wiring is an example of a:

Which one of the following insurance policy provisions requires the insured to pay for part of the loss if the property is not insured for the specified percentage of replacement value?

Which one of the following would not be considered personal property by a homeowner's insurance policy?

Kevin Brown rides his bicycle to work so that he doesn't have to worry about getting in a car accident. How is Kevin managing his risk?

Evan McWilliams accidentally collided with a car driven by Francis Sullivan. It was Evan's fault and Francis was seriously injured and had to spend the night in the hospital. What part of Evan's automobile insurance policy would cover Francis's injuries?

The most common method of dealing with risk is:

What does the term subrogation mean as it relates to motor vehicle property damage coverage?

A system that requires each insurance company operating in a state to provide coverage to individuals who have been unable to obtain other insurance is referred to as:

Possible losses due to negligence resulting in bodily harm or property damage to others are called ____________ risks.

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

Which statement is not true about no-fault insurance systems?

The additional living expenses component of a home insurance policy is designed to:

Another term for liability coverage that protects you from claims if a client holds you responsible for errors or you fail to perform as promised is:

Home insurance costs are affected most directly by:

The uncertainties of direct and indirect losses to personal or real property due to fire, wind, accident, theft, etc., are called ____________ risks.

Which form of homeowner's policy provides coverage for the most risks?

Georgette Valentine has expensive photography equipment for use in her hobby. Which one of the following types of coverage would pay for damage or theft of this equipment?

Which one of the following coverages would pay for medical care for people who were injured in your automobile?

Personal risks, property risks, and liability risks are types of ________ risk.

What type of coverage in a home insurance policy is designed to pay for legal action taken against a homeowner who may be legally responsible for injury or property damage of others?

The legal responsibility for the financial cost of another person's losses or injuries is referred to as:

Defective house wiring is an example of a:

Which one of the following insurance policy provisions requires the insured to pay for part of the loss if the property is not insured for the specified percentage of replacement value?

Which one of the following would not be considered personal property by a homeowner's insurance policy?

Kevin Brown rides his bicycle to work so that he doesn't have to worry about getting in a car accident. How is Kevin managing his risk?

Evan McWilliams accidentally collided with a car driven by Francis Sullivan. It was Evan's fault and Francis was seriously injured and had to spend the night in the hospital. What part of Evan's automobile insurance policy would cover Francis's injuries?

The most common method of dealing with risk is:

What does the term subrogation mean as it relates to motor vehicle property damage coverage?

A system that requires each insurance company operating in a state to provide coverage to individuals who have been unable to obtain other insurance is referred to as:

Possible losses due to negligence resulting in bodily harm or property damage to others are called ____________ risks.

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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