Question 1

A brick home should usually cost less to insure than a similar structure made of wood.

Accepted Answer

A) True 
 B)False

Question 2

Home insurance policies include coverage for all of the following except

Accepted Answer

A)  Credit card fraud. 
B)  The cost of removing damaged property. 
C)  Temporary repairs after a loss to prevent further damage. 
D)  Business property. 
E)  Emergency removal of property to protect it from damage. 
A)  Credit card fraud. 
B)  The cost of removing damaged property. 
C)  Temporary repairs after a loss to prevent further damage. 
D)  Business property. 
E)  Emergency removal of property to protect it from damage.

Question 3

Zach 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 he paid for it. 
B)  He should insure the building for its replacement value to receive the full cost of repairing or replacing it. 
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 he paid for it. 
B)  He should insure the building for its replacement value to receive the full cost of repairing or replacing it. 
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 4

Vincent 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 he paid for 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 55-75% 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 he paid for 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 55-75% of his home's insured amount. 
E)  His insured amount should remain the same as long as he lives in his house.

Question 5

Which of the following is NOT correct about renter's insurance?

Accepted Answer

A)  The broad form covers personal property against perils specified in the policy. 
B)  Renter's insurance covers the building and other structures on the site. 
C)  The comprehensive form protects personal property against perils not specifically excluded in the policy. 
D)  Typical coverage pays only the actual cash value of one's losses. 
E)  Renter's insurance includes personal property protection, additional living expenses, and personal liability. 
A)  The broad form covers personal property against perils specified in the policy. 
B)  Renter's insurance covers the building and other structures on the site. 
C)  The comprehensive form protects personal property against perils not specifically excluded in the policy. 
D)  Typical coverage pays only the actual cash value of one's losses. 
E)  Renter's insurance includes personal property protection, additional living expenses, and personal liability.

Question 6

If you choose to insure your home or your vehicle,you are using

Accepted Answer

A)  Risk avoidance. 
B)  Risk reduction. 
C)  Risk assumption. 
D)  Risk shifting. 
E)  Risk increasing. 
A)  Risk avoidance. 
B)  Risk reduction. 
C)  Risk assumption. 
D)  Risk shifting. 
E)  Risk increasing.

Question 7

Insurance coverage for a rental is more expensive than insurance coverage for a mobile home.

Accepted Answer

A) True 
 B)False

Question 8

If you choose to wear your seatbelt,you are using

Accepted Answer

A)  Risk avoidance. 
B)  Risk reduction. 
C)  Risk assumption. 
D)  Risk shifting. 
E)  Risk increasing. 
A)  Risk avoidance. 
B)  Risk reduction. 
C)  Risk assumption. 
D)  Risk shifting. 
E)  Risk increasing.

Question 9

Two main types of risk are related to your home and your vehicle.What are these main risks?

Accepted Answer

The main risks are risk of dam

Question 10

Discuss the amount of home insurance you should have.

Accepted Answer

The amount of home insurance should be b

Question 11

What is the fee that a policyholder pays when an insurance company agrees to take on the risk?

Accepted Answer

A)  Coverage 
B)  Insured 
C)  Premium 
D)  Peril 
E)  Risk 
A)  Coverage 
B)  Insured 
C)  Premium 
D)  Peril 
E)  Risk

Question 12

Barnaby 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 he paid for 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 policy should automatically increase coverage as construction costs rise. 
A)  He should base the amount of insurance on the price he paid for 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 policy should automatically increase coverage as construction costs rise.

Question 13

The actual cash value method of settling claims is based on the replacement cost of an item less depreciation.

Accepted Answer

A) True 
 B)False

Question 14

Homeowner's insurance covers all of the following except

Accepted Answer

A)  A detached garage. 
B)  Trees and shrubs. 
C)  A tool shed. 
D)  Personal property. 
E)  All of these are covered. 
A)  A detached garage. 
B)  Trees and shrubs. 
C)  A tool shed. 
D)  Personal property. 
E)  All of these are covered.

Question 15

If you have a loss due to a flood,

Accepted Answer

A)  Your homeowner's insurance should normally cover the loss. 
B)  You need to have purchased special coverage if you live in an area that has frequent floods in order to be covered. 
C)  FEMA (Federal Emergency Management Agency) will automatically provide coverage if this is your second flood loss. 
D)  You need an umbrella policy for coverage. 
E)  Your additional living expenses coverage will apply if you move to an area that has not flooded in one year. 
A)  Your homeowner's insurance should normally cover the loss. 
B)  You need to have purchased special coverage if you live in an area that has frequent floods in order to be covered. 
C)  FEMA (Federal Emergency Management Agency) will automatically provide coverage if this is your second flood loss. 
D)  You need an umbrella policy for coverage. 
E)  Your additional living expenses coverage will apply if you move to an area that has not flooded in one year.

Question 16

Last month some of your friends were injured in an accident.Their total injuries were as follows:   Coverage was 100/300/50.What was the total medical coverage in this accident?

Accepted Answer

A)  $40,000 
B)  $85,000 
C)  $125,000 
D)  $225,000 
E)  $250,000 
A)  $40,000 
B)  $85,000 
C)  $125,000 
D)  $225,000 
E)  $250,000

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Al left his vehicle parked on the street in the front of his house when he went on vacation.While he was gone,his street flooded and his car was severely damaged.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)  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 19

Explain the coverage under the following and provide an example of each:
a.Property damage liability.
b.Collision.
c.Comprehensive physical damage.

Accepted Answer

Examples include these:
a.Property damag

Question 20

Various states are trying to reduce the time and cost of settling vehicle injury cases.One alternative is

Accepted Answer

A)  Omitting uninsured motorist's protection. 
B)  Requiring the driver to pay all medical expenses. 
C)  Using the no-fault system. 
D)  Requiring emergency road service coverage. 
E)  Having the state pay for driver's insurance. 
A)  Omitting uninsured motorist's protection. 
B)  Requiring the driver to pay all medical expenses. 
C)  Using the no-fault system. 
D)  Requiring emergency road service coverage. 
E)  Having the state pay for driver's insurance.

A brick home should usually cost less to insure than a similar structure made of wood.

Home insurance policies include coverage for all of the following except

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

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

Which of the following is NOT correct about renter's insurance?

If you choose to insure your home or your vehicle,you are using

Insurance coverage for a rental is more expensive than insurance coverage for a mobile home.

If you choose to wear your seatbelt,you are using

Two main types of risk are related to your home and your vehicle.What are these main risks?

Discuss the amount of home insurance you should have.

What is the fee that a policyholder pays when an insurance company agrees to take on the risk?

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

The actual cash value method of settling claims is based on the replacement cost of an item less depreciation.

Homeowner's insurance covers all of the following except

If you have a loss due to a flood,

Last month some of your friends were injured in an accident.Their total injuries were as follows: Coverage was 100/300/50.What was the total medical coverage in this accident?

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

Al left his vehicle parked on the street in the front of his house when he went on vacation.While he was gone,his street flooded and his car was severely damaged.This damage would be covered under his

Explain the coverage under the following and provide an example of each: a.Property damage liability. b.Collision. c.Comprehensive physical damage.

Various states are trying to reduce the time and cost of settling vehicle injury cases.One alternative is

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

A brick home should usually cost less to insure than a similar structure made of wood.

Home insurance policies include coverage for all of the following except

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

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

Which of the following is NOT correct about renter's insurance?

If you choose to insure your home or your vehicle,you are using

Insurance coverage for a rental is more expensive than insurance coverage for a mobile home.

If you choose to wear your seatbelt,you are using

Two main types of risk are related to your home and your vehicle.What are these main risks?

Discuss the amount of home insurance you should have.

What is the fee that a policyholder pays when an insurance company agrees to take on the risk?

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

The actual cash value method of settling claims is based on the replacement cost of an item less depreciation.

Homeowner's insurance covers all of the following except

If you have a loss due to a flood,

Last month some of your friends were injured in an accident.Their total injuries were as follows: Coverage was 100/300/50.What was the total medical coverage in this accident?

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

Al left his vehicle parked on the street in the front of his house when he went on vacation.While he was gone,his street flooded and his car was severely damaged.This damage would be covered under his

Explain the coverage under the following and provide an example of each: a.Property damage liability. b.Collision. c.Comprehensive physical damage.

Various states are trying to reduce the time and cost of settling vehicle injury cases.One alternative is

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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