Question 1

Cindy was contacted by her home insurance agent to discuss ways to decrease her premium.Which of the following should NOT reduce her premium?

Accepted Answer

A)  Installing an alarm system. 
B)  Increasing the amount of coverage. 
C)  Installing smoke detectors or a fire extinguisher. 
D)  Increasing her deductible. 
E)  All of these should reduce her premium. 
A)  Installing an alarm system. 
B)  Increasing the amount of coverage. 
C)  Installing smoke detectors or a fire extinguisher. 
D)  Increasing her deductible. 
E)  All of these should reduce her premium.

Question 2

Motor vehicle crashes cost more than ______ in lost wages and medical bills every year.

Accepted Answer

A)  $10,000 
B)  $750,000 
C)  $12 million 
D)  $150 billion 
E)  $2 trillion 
A)  $10,000 
B)  $750,000 
C)  $12 million 
D)  $150 billion 
E)  $2 trillion

Question 3

If you need information to compare Acme Home Insurance and Zebra Home Insurance,you should contact the state insurance commissioner or a consumer organization that deals with insurance.

Accepted Answer

A) True 
 B)False

Question 4

Barbara left a skateboard on her front steps.Her neighbor tripped on the skateboard and was injured.The fact that Barbara didn't put away the skateboard is called

Accepted Answer

A)  Hazard. 
B)  Negligence. 
C)  Peril. 
D)  Premium. 
E)  Risk. 
A)  Hazard. 
B)  Negligence. 
C)  Peril. 
D)  Premium. 
E)  Risk.

Question 5

Sammy was driving on the highway and drove over a piece of metal that was on the highway.The metal punctured her gas tank.This damage would be covered under her

Accepted Answer

A)  Uninsured motorist's protection. 
B)  Property damage liability policy. 
C)  Collision policy. 
D)  Comprehensive physical damage policy. 
E)  Bodily injury liability policy. 
A)  Uninsured motorist's protection. 
B)  Property damage liability policy. 
C)  Collision policy. 
D)  Comprehensive physical damage policy. 
E)  Bodily injury liability policy.

Question 6

Insurance allows someone to

Accepted Answer

A)  Reduce risk. 
B)  Assume risk. 
C)  Shift risk. 
D)  Avoid risk. 
E)  Eliminate risk. 
A)  Reduce risk. 
B)  Assume risk. 
C)  Shift risk. 
D)  Avoid risk. 
E)  Eliminate risk.

Question 7

Barbara left a skateboard on her front steps.Her neighbor tripped on the skateboard and was injured.The skateboard was a

Accepted Answer

A)  Hazard. 
B)  Negligence. 
C)  Peril. 
D)  Premium. 
E)  Risk. 
A)  Hazard. 
B)  Negligence. 
C)  Peril. 
D)  Premium. 
E)  Risk.

Question 8

Which of the following is NOT a type of motor vehicle insurance available to drivers?

Accepted Answer

A)  Wage loss insurance 
B)  Emergency road service coverage 
C)  Rental reimbursement coverage 
D)  All of these may be available to drivers 
E)  Nonel of these is optional. 
A)  Wage loss insurance 
B)  Emergency road service coverage 
C)  Rental reimbursement coverage 
D)  All of these may be available to drivers 
E)  Nonel of these is optional.

Question 9

It is illegal to use a credit score to determine the premium to charge an individual.

Accepted Answer

A) True 
 B)False

Question 10

Risk management is an organized plan for protecting yourself,your family,and your property.

Accepted Answer

A) True 
 B)False

Question 11

Personal liability coverage does NOT protect

Accepted Answer

A)  An occasional babysitter. 
B)  The homeowner. 
C)  A visitor. 
D)  Members of the homeowner's family. 
E)  A housekeeper. 
A)  An occasional babysitter. 
B)  The homeowner. 
C)  A visitor. 
D)  Members of the homeowner's family. 
E)  A housekeeper.

Question 12

An insurance program

Accepted Answer

A)  Should be constant through one's life. 
B)  Should change along with needs and goals. 
C)  Should minimize personal property and liability risks. 
D)  Should be constant through one's life, and should minimize personal property and liability risks. 
E)  Should minimize personal property and liability risks, and change along with one's needs and goals. 
A)  Should be constant through one's life. 
B)  Should change along with needs and goals. 
C)  Should minimize personal property and liability risks. 
D)  Should be constant through one's life, and should minimize personal property and liability risks. 
E)  Should minimize personal property and liability risks, and change along with one's needs and goals.

Question 13

Which of the following is correct?

Accepted Answer

A)  The best risk management plan is constant through one's life. 
B)  Once a plan is set up, it should be reviewed every 10 years. 
C)  A solid risk management plan works well without insurance as a component. 
D)  One question that should be asked when developing a risk management plan is "What do I need to insure?" 
E)  The main goal of insurance should be to maximize personal, property, and liability risks. 
A)  The best risk management plan is constant through one's life. 
B)  Once a plan is set up, it should be reviewed every 10 years. 
C)  A solid risk management plan works well without insurance as a component. 
D)  One question that should be asked when developing a risk management plan is "What do I need to insure?" 
E)  The main goal of insurance should be to maximize personal, property, and liability risks.

Question 14

Once a risk management plan is in place,the insurance programs that were set up should remain the same even as family needs change.

Accepted Answer

A) True 
 B)False

Question 15

Zachary lived in a neighborhood that was known for gang activity.One day,he noticed that his car had been vandalized.This damage would be covered under his

Accepted Answer

A)  Uninsured motorist's protection. 
B)  Property damage liability policy. 
C)  Collision policy. 
D)  Comprehensive physical damage policy. 
E)  The vehicle would not be covered because he was not in it when the damage occurred. 
A)  Uninsured motorist's protection. 
B)  Property damage liability policy. 
C)  Collision policy. 
D)  Comprehensive physical damage policy. 
E)  The vehicle would not be covered because he was not in it when the damage occurred.

Question 16

What is an example of a property loss?

Accepted Answer

Examples include physical damage caused

Question 17

Medical payments coverage applies to medical expenses of

Accepted Answer

A)  Anyone in your vehicle, including you. 
B)  Anyone in your vehicle who is injured, except the driver. 
C)  The driver, but no passengers who are injured. 
D)  The owner of the vehicle, but not other passengers. 
E)  The uninsured motorist who causes an accident. 
A)  Anyone in your vehicle, including you. 
B)  Anyone in your vehicle who is injured, except the driver. 
C)  The driver, but no passengers who are injured. 
D)  The owner of the vehicle, but not other passengers. 
E)  The uninsured motorist who causes an accident.

Question 18

The two basic types of risk that people face regarding their personal property are

Accepted Answer

A)  Basic and criminal. 
B)  Physical damage and destruction. 
C)  Destruction and basic. 
D)  Physical damage and damage caused by criminal behavior. 
E)  Negligence and criminal behavior. 
A)  Basic and criminal. 
B)  Physical damage and destruction. 
C)  Destruction and basic. 
D)  Physical damage and damage caused by criminal behavior. 
E)  Negligence and criminal behavior.

Question 19

List four factors that affect the cost of home insurance and examine how each affects this cost.

Accepted Answer

Factors include
• Location of home-close

Question 20

Sandra is contacting several insurance companies to compare coverage for her home.Which of the following should NOT affect her premium?

Accepted Answer

A)  Alarm system 
B)  Amount of coverage 
C)  Type of structure 
D)  Deductible 
E)  Proximity to a school 
A)  Alarm system 
B)  Amount of coverage 
C)  Type of structure 
D)  Deductible 
E)  Proximity to a school

Cindy was contacted by her home insurance agent to discuss ways to decrease her premium.Which of the following should NOT reduce her premium?

Motor vehicle crashes cost more than ______ in lost wages and medical bills every year.

If you need information to compare Acme Home Insurance and Zebra Home Insurance,you should contact the state insurance commissioner or a consumer organization that deals with insurance.

Barbara left a skateboard on her front steps.Her neighbor tripped on the skateboard and was injured.The fact that Barbara didn't put away the skateboard is called

Sammy was driving on the highway and drove over a piece of metal that was on the highway.The metal punctured her gas tank.This damage would be covered under her

Insurance allows someone to

Barbara left a skateboard on her front steps.Her neighbor tripped on the skateboard and was injured.The skateboard was a

Which of the following is NOT a type of motor vehicle insurance available to drivers?

It is illegal to use a credit score to determine the premium to charge an individual.

Risk management is an organized plan for protecting yourself,your family,and your property.

Personal liability coverage does NOT protect

An insurance program

Which of the following is correct?

Once a risk management plan is in place,the insurance programs that were set up should remain the same even as family needs change.

Zachary lived in a neighborhood that was known for gang activity.One day,he noticed that his car had been vandalized.This damage would be covered under his

What is an example of a property loss?

Medical payments coverage applies to medical expenses of

The two basic types of risk that people face regarding their personal property are

List four factors that affect the cost of home insurance and examine how each affects this cost.

Sandra is contacting several insurance companies to compare coverage for her home.Which of the following should NOT affect her premium?

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Account

Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

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Exam 8: Home and Automobile Insurance

Cindy was contacted by her home insurance agent to discuss ways to decrease her premium.Which of the following should NOT reduce her premium?

Motor vehicle crashes cost more than ______ in lost wages and medical bills every year.

If you need information to compare Acme Home Insurance and Zebra Home Insurance,you should contact the state insurance commissioner or a consumer organization that deals with insurance.

Barbara left a skateboard on her front steps.Her neighbor tripped on the skateboard and was injured.The fact that Barbara didn't put away the skateboard is called

Sammy was driving on the highway and drove over a piece of metal that was on the highway.The metal punctured her gas tank.This damage would be covered under her

Insurance allows someone to

Barbara left a skateboard on her front steps.Her neighbor tripped on the skateboard and was injured.The skateboard was a

Which of the following is NOT a type of motor vehicle insurance available to drivers?

It is illegal to use a credit score to determine the premium to charge an individual.

Risk management is an organized plan for protecting yourself,your family,and your property.

Personal liability coverage does NOT protect

An insurance program

Which of the following is correct?

Once a risk management plan is in place,the insurance programs that were set up should remain the same even as family needs change.

Zachary lived in a neighborhood that was known for gang activity.One day,he noticed that his car had been vandalized.This damage would be covered under his

What is an example of a property loss?

Medical payments coverage applies to medical expenses of

The two basic types of risk that people face regarding their personal property are

List four factors that affect the cost of home insurance and examine how each affects this cost.

Sandra is contacting several insurance companies to compare coverage for her home.Which of the following should NOT affect her premium?

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Account

Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Filters