Question 1

Which of the following refers to a category based on your place of residence that is used to set automobile insurance premiums?

Accepted Answer

A)  rating territory 
B)  assigned risk pool 
C)  no-fault system 
D)  driver classification 
E)  use of the vehicle 
A)  rating territory 
B)  assigned risk pool 
C)  no-fault system 
D)  driver classification 
E)  use of the vehicle A

Question 2

Liability risk

Accepted Answer

A)  carries a chance of either loss or gain, such as gambling or investing in a new business. 
B)  is the cause of a possible loss. 
C)  increases the likelihood of loss through some peril. 
D)  are the uncertainties of direct or indirect losses to property due to fire, windstorms, accidents, theft, and other hazards. 
E)  is loss possibilities due to negligence resulting in bodily harm or property damage to others. 
A)  carries a chance of either loss or gain, such as gambling or investing in a new business. 
B)  is the cause of a possible loss. 
C)  increases the likelihood of loss through some peril. 
D)  are the uncertainties of direct or indirect losses to property due to fire, windstorms, accidents, theft, and other hazards. 
E)  is loss possibilities due to negligence resulting in bodily harm or property damage to others. E

Question 3

Which of the following factors is used to determine a person's driver classification?

Accepted Answer

A)  Age 
B)  Type and age of vehicle 
C)  Claims in your geographic area 
D)  Insurance company claim processing costs 
E)  State insurance premium regulations 
A)  Age 
B)  Type and age of vehicle 
C)  Claims in your geographic area 
D)  Insurance company claim processing costs 
E)  State insurance premium regulations A

Question 4

The driver classification category is based on automobile style, model, and value of the vehicle.

Accepted Answer

A) True 
 B)False

Question 5

There are no significant differences in home owner rates when comparing different insurance companies

Accepted Answer

A) True 
 B)False

Question 6

No-fault insurance systems have consistently reduced the time and costs involved in settling claims.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following refers to a category based on age, sex, marital status, and driving habits that is used to set automobile insurance premiums?

Accepted Answer

A)  rating territory 
B)  assigned risk pool 
C)  no-fault system 
D)  driver classification 
E)  use of the vehicle 
A)  rating territory 
B)  assigned risk pool 
C)  no-fault system 
D)  driver classification 
E)  use of the vehicle

Question 8

Risk is

Accepted Answer

A)  the chance that something may be lost. 
B)  is the cause of a possible loss. 
C)  the increased likelihood of loss through some peril. 
D)  uncertainties of direct or indirect losses to property due to fire, windstorms, accidents, theft, and other hazards. 
E)  loss possibilities due to negligence resulting in bodily harm or property damage to others. 
A)  the chance that something may be lost. 
B)  is the cause of a possible loss. 
C)  the increased likelihood of loss through some peril. 
D)  uncertainties of direct or indirect losses to property due to fire, windstorms, accidents, theft, and other hazards. 
E)  loss possibilities due to negligence resulting in bodily harm or property damage to others.

Question 9

Wind damage occurs to your car costing $1,000 to repair. If you have a $300 deductible for collision and full coverage for comprehensive, what portion of the claim will the insurance company pay?

Accepted Answer

A)  $300 
B)  $1,300 
C)  $500 
D)  $700 
E)  $800 
A)  $300 
B)  $1,300 
C)  $500 
D)  $700 
E)  $800

Question 10

The homeowners' pets are included in the coverage provided by the homeowners insurance.

Accepted Answer

A) True 
 B)False

Question 11

Peril is defined as

Accepted Answer

A)  the refusal by an insurance company to pay for the covered loss. 
B)  the cause of risk. 
C)  the cause of a possible loss. 
D)  an uncertainty as to loss. 
E)  risk 
A)  the refusal by an insurance company to pay for the covered loss. 
B)  the cause of risk. 
C)  the cause of a possible loss. 
D)  an uncertainty as to loss. 
E)  risk

Question 12

Which of the following would be covered by a home insurance policy?

Accepted Answer

A)  earthquake damage 
B)  flooding 
C)  brush fires 
D)  wind damage to your roof 
E)  theft of business supplies from your office 
A)  earthquake damage 
B)  flooding 
C)  brush fires 
D)  wind damage to your roof 
E)  theft of business supplies from your office

Question 13

Vicarious liability refers to the failure to take ordinary or reasonable care in a situation.

Accepted Answer

A) True 
 B)False

Question 14

A rider is an addition of coverage to a standard insurance policy.

Accepted Answer

A) True 
 B)False

Question 15

Collision coverage pays for damage to your vehicle for such hazards as fire, theft, or wind damage.

Accepted Answer

A) True 
 B)False

Question 16

A speculative risk is a risk that carries a chance of either loss or gain.

Accepted Answer

A) True 
 B)False

Question 17

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

Question 18

Personal belongings of a high value can be protected with a personal articles endorsement.

Accepted Answer

A) True 
 B)False

Question 19

Starting a small business that may or may not succeed is an example of speculative risk.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A)  an automobile 
B)  a garage 
C)  a house 
D)  appliances 
E)  trees and shrubs 
A)  an automobile 
B)  a garage 
C)  a house 
D)  appliances 
E)  trees and shrubs

Which of the following refers to a category based on your place of residence that is used to set automobile insurance premiums?

Liability risk

Which of the following factors is used to determine a person's driver classification?

The driver classification category is based on automobile style, model, and value of the vehicle.

There are no significant differences in home owner rates when comparing different insurance companies

No-fault insurance systems have consistently reduced the time and costs involved in settling claims.

Which of the following refers to a category based on age, sex, marital status, and driving habits that is used to set automobile insurance premiums?

Risk is

Wind damage occurs to your car costing $1,000 to repair. If you have a $300 deductible for collision and full coverage for comprehensive, what portion of the claim will the insurance company pay?

The homeowners' pets are included in the coverage provided by the homeowners insurance.

Peril is defined as

Which of the following would be covered by a home insurance policy?

Vicarious liability refers to the failure to take ordinary or reasonable care in a situation.

A rider is an addition of coverage to a standard insurance policy.

Collision coverage pays for damage to your vehicle for such hazards as fire, theft, or wind damage.

A speculative risk is a risk that carries a chance of either loss or gain.

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

Personal belongings of a high value can be protected with a personal articles endorsement.

Starting a small business that may or may not succeed is an example of speculative risk.

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

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

The Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source Credit: the Costs of Credit Alternatives

The Finances of Housing

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

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Exam 8: Home and Automobile Insurance

Which of the following refers to a category based on your place of residence that is used to set automobile insurance premiums?

Liability risk

Which of the following factors is used to determine a person's driver classification?

The driver classification category is based on automobile style, model, and value of the vehicle.

There are no significant differences in home owner rates when comparing different insurance companies

No-fault insurance systems have consistently reduced the time and costs involved in settling claims.

Which of the following refers to a category based on age, sex, marital status, and driving habits that is used to set automobile insurance premiums?

Risk is

Wind damage occurs to your car costing $1,000 to repair. If you have a $300 deductible for collision and full coverage for comprehensive, what portion of the claim will the insurance company pay?

The homeowners' pets are included in the coverage provided by the homeowners insurance.

Peril is defined as

Which of the following would be covered by a home insurance policy?

Vicarious liability refers to the failure to take ordinary or reasonable care in a situation.

A rider is an addition of coverage to a standard insurance policy.

Collision coverage pays for damage to your vehicle for such hazards as fire, theft, or wind damage.

A speculative risk is a risk that carries a chance of either loss or gain.

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

Personal belongings of a high value can be protected with a personal articles endorsement.

Starting a small business that may or may not succeed is an example of speculative risk.

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

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

The Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source Credit: the Costs of Credit Alternatives

The Finances of Housing

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters