Question 1

The 100 in 100/300/50 refers to:

Accepted Answer

A) property damage liability coverage. 
B) the amount of the deductible. 
C) collision coverage. 
D) the total coverage for an accident 
E) the limit for bodily injury claims that can be paid to one person. 
A) property damage liability coverage. 
B) the amount of the deductible. 
C) collision coverage. 
D) the total coverage for an accident 
E) the limit for bodily injury claims that can be paid to one person.

Question 2

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 3

Which of the following is considered personal property for home insurance coverage?

Accepted Answer

A) automobile 
B) garage 
C) furniture 
D) house 
E) trees and shrubs 
A) automobile 
B) garage 
C) furniture 
D) house 
E) trees and shrubs

Question 4

Wind damage occurs to your car costing $800 to repair.If you have a $100 deductible for collision and full coverage for comprehensive,what portion of the claim will the insurance company pay?

Accepted Answer

A) $100 
B) $200 
C) $500 
D) $700 
E) $800 
A) $100 
B) $200 
C) $500 
D) $700 
E) $800

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 7

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 8

Replacement cost for settling property insurance claims is less costly than the actual cash value method.

Accepted Answer

A) True 
 B)False

Question 9

Your geographic location is a major factor in determining the ____________ used to calculate your automobile insurance premiums.

Accepted Answer

A) driver classification 
B) assigned risk pool 
C) coverage level 
D) legal responsibilities 
E) rating territory 
A) driver classification 
B) assigned risk pool 
C) coverage level 
D) legal responsibilities 
E) rating territory

Question 10

Personal belongings that have a high value require coverage with a personal property floater.

Accepted Answer

A) True 
 B)False

Question 11

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

Question 12

Which type of automobile insurance is usually considered to be most important?

Accepted Answer

While protection from financial loss as

Question 13

The purpose of financial responsibility laws is to:

Accepted Answer

A) reduce auto insurance costs. 
B) assist poor drivers in getting insurance coverage. 
C) protect the public from financial losses due to auto accidents. 
D) require uninsured motorists coverage. 
E) help drivers with a clean driving record. 
A) reduce auto insurance costs. 
B) assist poor drivers in getting insurance coverage. 
C) protect the public from financial losses due to auto accidents. 
D) require uninsured motorists coverage. 
E) help drivers with a clean driving record.

Question 14

What factors affect the cost of home insurance?

Accepted Answer

The main influences on home insurance co

Question 15

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 16

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

Accepted Answer

Strict liability is present when a perso

Question 17

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 18

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 19

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) legal action against you for an accident. 
E) 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) legal action against you for an accident. 
E) damage to a neighbor's tree caused by your car.

Question 20

The ____________ method to settle claims is based on the current replacement cost of a damaged or lost item less depreciation.

Accepted Answer

A) replacement value 
B) actual cash value 
C) umbrella 
D) endorsement 
E) personal property floater 
A) replacement value 
B) actual cash value 
C) umbrella 
D) endorsement 
E) personal property floater

The 100 in 100/300/50 refers to:

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:

Which of the following is considered personal property for home insurance coverage?

Wind damage occurs to your car costing $800 to repair.If you have a $100 deductible for collision and full coverage for comprehensive,what portion of the claim will the insurance company pay?

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

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:

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

Replacement cost for settling property insurance claims is less costly than the actual cash value method.

Your geographic location is a major factor in determining the ____________ used to calculate your automobile insurance premiums.

Personal belongings that have a high value require coverage with a personal property floater.

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

Which type of automobile insurance is usually considered to be most important?

The purpose of financial responsibility laws is to:

What factors affect the cost of home insurance?

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?

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

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:

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

Comprehensive coverage would cover financial losses due to:

The ____________ method to settle claims is based on the current replacement cost of a damaged or lost item less depreciation.

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 100 in 100/300/50 refers to:

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:

Which of the following is considered personal property for home insurance coverage?

Wind damage occurs to your car costing $800 to repair.If you have a $100 deductible for collision and full coverage for comprehensive,what portion of the claim will the insurance company pay?

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

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:

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

Replacement cost for settling property insurance claims is less costly than the actual cash value method.

Your geographic location is a major factor in determining the ____________ used to calculate your automobile insurance premiums.

Personal belongings that have a high value require coverage with a personal property floater.

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

Which type of automobile insurance is usually considered to be most important?

The purpose of financial responsibility laws is to:

What factors affect the cost of home insurance?

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?

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

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:

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

Comprehensive coverage would cover financial losses due to:

The ____________ method to settle claims is based on the current replacement cost of a damaged or lost item less depreciation.

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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