Question 1

Which of the following is NOT correct?

Accepted Answer

A)  If you live in a rural area, your auto insurance premium will likely be lower than if you live in a city. 
B)  In general, young drivers (under 25) and elderly drivers (over 70) have more frequent and more serious accidents. 
C)  Multiple accidents or traffic violations can increase insurance rates. 
D)  The number of small claims you have should not affect your premium. 
E)  Your credit score can cause your premium to change. 
A)  If you live in a rural area, your auto insurance premium will likely be lower than if you live in a city. 
B)  In general, young drivers (under 25) and elderly drivers (over 70) have more frequent and more serious accidents. 
C)  Multiple accidents or traffic violations can increase insurance rates. 
D)  The number of small claims you have should not affect your premium. 
E)  Your credit score can cause your premium to change.

Question 2

The first step to setting up an insurance program is to set insurance goals.

Accepted Answer

A) True 
 B)False

Question 3

Cheyenne has a home insured for $300,000.It would cost $320,000 to rebuild her home.If she has home insurance that provides personal property coverage at 70% of value,how much of her belongings would be covered?

Accepted Answer

A)  $120,000 
B)  $210,000 
C)  $224,000 
D)  $300,000 
E)  $320,000 
A)  $120,000 
B)  $210,000 
C)  $224,000 
D)  $300,000 
E)  $320,000

Question 4

An example of a peril is defective wiring.

Accepted Answer

A) True 
 B)False

Question 5

List three types of coverage in a homeowner's insurance policy.

Accepted Answer

Homeowner's insurance coverage includes

Question 6

A homeowner policy provides coverage for additional living expenses after a fire.

Accepted Answer

A) True 
 B)False

Question 7

Personal property insurance covers

Accepted Answer

A)  All personal property. 
B)  Furniture and appliances, but not clothing or some electronics. 
C)  Clothing and some electronics, but not furniture and appliances. 
D)  All items up to 200% of the insured value of the home. 
E)  Personal property items up to 55-75% of the insured value of the home. 
A)  All personal property. 
B)  Furniture and appliances, but not clothing or some electronics. 
C)  Clothing and some electronics, but not furniture and appliances. 
D)  All items up to 200% of the insured value of the home. 
E)  Personal property items up to 55-75% of the insured value of the home.

Question 8

Why is it important to compare home insurance companies?

Accepted Answer

Rates can vary by more than 30

Question 9

Yogi is applying for insurance for his new home.Which of the following is correct?

Accepted Answer

A)  He should base the amount of insurance on the price to rebuild or repair it. 
B)  He should insure the building for 75% of its replacement cost. 
C)  He should use the actual cash value method for settling claims to receive the full cost of repairing or replacing his personal belongings. 
D)  His personal belongings should automatically be covered with his home at 125% of his home's insured amount. 
E)  His insured amount should remain the same as long as he lives in his house. 
A)  He should base the amount of insurance on the price to rebuild or repair it. 
B)  He should insure the building for 75% of its replacement cost. 
C)  He should use the actual cash value method for settling claims to receive the full cost of repairing or replacing his personal belongings. 
D)  His personal belongings should automatically be covered with his home at 125% of his home's insured amount. 
E)  His insured amount should remain the same as long as he lives in his house.

Question 10

Samuel should buy insurance in order to eliminate his risk.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following questions should one ask when developing a risk management plan?

Accepted Answer

A)  What do I need to insure? 
B)  How much should I insure something for? 
C)  What kind of insurance should I buy? 
D)  Whom should I buy insurance from? 
E)  All of these questions should be asked when developing a risk management plan. 
A)  What do I need to insure? 
B)  How much should I insure something for? 
C)  What kind of insurance should I buy? 
D)  Whom should I buy insurance from? 
E)  All of these questions should be asked when developing a risk management plan.

Question 12

Liability is defined as

Accepted Answer

A)  An insurance program for individuals and households. 
B)  The legal responsibility for the financial cost of another person's losses or injuries. 
C)  Negligence. 
D)  A loss due to physical damage. 
E)  Risk assumption. 
A)  An insurance program for individuals and households. 
B)  The legal responsibility for the financial cost of another person's losses or injuries. 
C)  Negligence. 
D)  A loss due to physical damage. 
E)  Risk assumption.

Question 13

Angela should decrease her deductible from $1,000 to $250 in order to reduce her home insurance premium.

Accepted Answer

A) True 
 B)False

Question 14

Discuss what 100/300/50 means with relation to liability coverage for automobile insurance.

Accepted Answer

These amounts represent thousands of dol

Question 15

Sam's house should be insured for the amount he originally paid for it.

Accepted Answer

A) True 
 B)False

Question 16

Insurance that covers valuable items,such as an expensive harp,is called

Accepted Answer

A)  Buildings and other structures coverage. 
B)  Homeowner's insurance. 
C)  Personal property floater. 
D)  Household inventory insurance. 
E)  Personal property insurance. 
A)  Buildings and other structures coverage. 
B)  Homeowner's insurance. 
C)  Personal property floater. 
D)  Household inventory insurance. 
E)  Personal property insurance.

Question 17

An individual who purchases insurance is

Accepted Answer

A)  The insurance company. 
B)  A policyholder. 
C)  An insurer. 
D)  A victim. 
E)  An employer. 
A)  The insurance company. 
B)  A policyholder. 
C)  An insurer. 
D)  A victim. 
E)  An employer.

Question 18

Homeowner's insurance covers all of the following except

Accepted Answer

A)  Three months in a hotel after a house fire. 
B)  Theft of a diamond necklace valued at $25,000. 
C)  A three-year-old television. 
D)  A fire that damages your neighbor's roof that was caused by a spark from your grill. 
E)  Medical costs for a visitor who slipped on your steps and broke his ankle. 
A)  Three months in a hotel after a house fire. 
B)  Theft of a diamond necklace valued at $25,000. 
C)  A three-year-old television. 
D)  A fire that damages your neighbor's roof that was caused by a spark from your grill. 
E)  Medical costs for a visitor who slipped on your steps and broke his ankle.

Question 19

What are three ways that you can maintain or reduce your auto insurance rates?

Accepted Answer

Many answers are appropriate:
• Improve

Question 20

Motor vehicle insurance falls into two categories: protection for bodily injury and protection for property damage.

Accepted Answer

A) True 
 B)False

Which of the following is NOT correct?

The first step to setting up an insurance program is to set insurance goals.

Cheyenne has a home insured for $300,000.It would cost $320,000 to rebuild her home.If she has home insurance that provides personal property coverage at 70% of value,how much of her belongings would be covered?

An example of a peril is defective wiring.

List three types of coverage in a homeowner's insurance policy.

A homeowner policy provides coverage for additional living expenses after a fire.

Personal property insurance covers

Why is it important to compare home insurance companies?

Yogi is applying for insurance for his new home.Which of the following is correct?

Samuel should buy insurance in order to eliminate his risk.

Which of the following questions should one ask when developing a risk management plan?

Liability is defined as

Angela should decrease her deductible from $1,000 to $250 in order to reduce her home insurance premium.

Discuss what 100/300/50 means with relation to liability coverage for automobile insurance.

Sam's house should be insured for the amount he originally paid for it.

Insurance that covers valuable items,such as an expensive harp,is called

An individual who purchases insurance is

Homeowner's insurance covers all of the following except

What are three ways that you can maintain or reduce your auto insurance rates?

Motor vehicle insurance falls into two categories: protection for bodily injury and protection for property damage.

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

Exam 8: Home and Automobile Insurance

Which of the following is NOT correct?

The first step to setting up an insurance program is to set insurance goals.

Cheyenne has a home insured for $300,000.It would cost $320,000 to rebuild her home.If she has home insurance that provides personal property coverage at 70% of value,how much of her belongings would be covered?

An example of a peril is defective wiring.

List three types of coverage in a homeowner's insurance policy.

A homeowner policy provides coverage for additional living expenses after a fire.

Personal property insurance covers

Why is it important to compare home insurance companies?

Yogi is applying for insurance for his new home.Which of the following is correct?

Samuel should buy insurance in order to eliminate his risk.

Which of the following questions should one ask when developing a risk management plan?

Liability is defined as

Angela should decrease her deductible from $1,000 to $250 in order to reduce her home insurance premium.

Discuss what 100/300/50 means with relation to liability coverage for automobile insurance.

Sam's house should be insured for the amount he originally paid for it.

Insurance that covers valuable items,such as an expensive harp,is called

An individual who purchases insurance is

Homeowner's insurance covers all of the following except

What are three ways that you can maintain or reduce your auto insurance rates?

Motor vehicle insurance falls into two categories: protection for bodily injury and protection for property damage.

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