Question 1

Risk management is an organized strategy for protecting assets and people.

Accepted Answer

A) True 
 B)False

Question 2

If you have a $2,000 claim resulting from a fire in your home and your policy stipulates that your deductible is $500, then the insurance company will pay you

Accepted Answer

A)  $2,000 
B)  $1,500 
C)  $1,000 
D)  $500 
E)  $2,500 
A)  $2,000 
B)  $1,500 
C)  $1,000 
D)  $500 
E)  $2,500

Question 3

What factors affect the cost of home insurance?

Accepted Answer

The main influences on home insurance co

Question 4

In the insurance industry, the term "peril" represents ________________.

Accepted Answer

A)  the chance that something may be lost 
B)  the cause of the possible loss 
C)  a habit that increases the likelihood of loss 
D)  the actual loss experienced 
E)  your record of past losses 
A)  the chance that something may be lost 
B)  the cause of the possible loss 
C)  a habit that increases the likelihood of loss 
D)  the actual loss experienced 
E)  your record of past losses

Question 5

Vicarious liability refers to

Accepted Answer

A)  failure to take ordinary and reasonable care. 
B)  when a person is held responsible for actions of another person. 
C)  property damage. 
D)  high risk insurance coverage. 
E)  common hazards in our society. 
A)  failure to take ordinary and reasonable care. 
B)  when a person is held responsible for actions of another person. 
C)  property damage. 
D)  high risk insurance coverage. 
E)  common hazards in our society.

Question 6

Your home insurance provides for replacement value for personal property losses. A microwave is stolen. It cost $300 two years ago and has an expected life of six years. A comparable microwave costs $200 today. What amount will the insurance company pay?

Accepted Answer

A)  $100 
B)  $150 
C)  $200 
D)  $350 
E)  $300 
A)  $100 
B)  $150 
C)  $200 
D)  $350 
E)  $300

Question 7

Anne has an expensive diamond ring. Which coverage from the following list would pay for damage or theft of this item?

Accepted Answer

A)  an umbrella policy 
B)  a household inventory 
C)  additional living expense coverage 
D)  a personal articles endorsement 
E)  a coinsurance floater 
A)  an umbrella policy 
B)  a household inventory 
C)  additional living expense coverage 
D)  a personal articles endorsement 
E)  a coinsurance floater

Question 8

Which of the following coverage's would pay for medical care for people who were injured in your automobile?

Accepted Answer

A)  comprehensive 
B)  bodily injury liability 
C)  collision 
D)  accident benefits 
E)  no-fault insurance 
A)  comprehensive 
B)  bodily injury liability 
C)  collision 
D)  accident benefits 
E)  no-fault insurance

Question 9

The requirement for a minimum level of home insurance coverage refers to which of the following?

Accepted Answer

A)  Deductible 
B)  Specified perils 
C)  Endorsement 
D)  Co-insurance 
E)  Basic 
A)  Deductible 
B)  Specified perils 
C)  Endorsement 
D)  Co-insurance 
E)  Basic

Question 10

The higher the deductible you choose for your car insurance, the higher the premium.

Accepted Answer

A) True 
 B)False

Question 11

If a homeowner leaves toys on stairs that result in injury to a delivery person, this may be ruled as

Accepted Answer

A)  vicarious liability. 
B)  negligence. 
C)  assigned risk. 
D)  umbrella coverage. 
E)  coinsurance. 
A)  vicarious liability. 
B)  negligence. 
C)  assigned risk. 
D)  umbrella coverage. 
E)  coinsurance.

Question 12

Voluntary medical payments coverage in a home insurance policy is designed to pay for legal action taken against a homeowner who may be legally responsible for injury or property damage of others.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is a system in which drivers involved in an accident collect medical expenses, lost wages, and related injury costs from their own insurance company?

Accepted Answer

A)  assigned risk pool 
B)  no-fault insurance 
C)  comprehensive system 
D)  financial responsibility coverage 
E)  uninsured motorist's protection 
A)  assigned risk pool 
B)  no-fault insurance 
C)  comprehensive system 
D)  financial responsibility coverage 
E)  uninsured motorist's protection

Question 14

Most home insurance policies provide coverage for

Accepted Answer

A)  earthquake damage. 
B)  flood damage. 
C)  an umbrella liability. 
D)  basic personal liability. 
E)  medical payments. 
A)  earthquake damage. 
B)  flood damage. 
C)  an umbrella liability. 
D)  basic personal liability. 
E)  medical payments.

Question 15

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

Accepted Answer

While protection from financial loss as

Question 16

Which of the following are not covered by tenant's insurance?

Accepted Answer

A)  medical expenses for injuries to visitors 
B)  fire damage of the building's roof 
C)  additional living expenses 
D)  accidental damage to the property of others 
E)  cost of legal action due to personal liability 
A)  medical expenses for injuries to visitors 
B)  fire damage of the building's roof 
C)  additional living expenses 
D)  accidental damage to the property of others 
E)  cost of legal action due to personal liability

Question 17

Personal property refers to the contents of your home-clothes, furniture, appliances, and similar items covered by homeowner's insurance.

Accepted Answer

A) True 
 B)False

Question 18

Tenant's insurance would include coverage for all of the following except

Accepted Answer

A)  additional living expense coverage. 
B)  personal liability. 
C)  building and other structures. 
D)  personal property. 
E)  protection against financial loss due to damage. 
A)  additional living expense coverage. 
B)  personal liability. 
C)  building and other structures. 
D)  personal property. 
E)  protection against financial loss due to damage.

Question 19

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

Accepted Answer

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

Question 20

The additional living expenses component of a home insurance policy is designed to

Accepted Answer

A)  pay for temporary housing while your home is repaired. 
B)  cover damage to property while away from home. 
C)  reimburse a homeowner for damage done by a visitor. 
D)  pay for medical expenses of people injured on your property. 
E)  pay for repairs caused by fire or other hazards. 
A)  pay for temporary housing while your home is repaired. 
B)  cover damage to property while away from home. 
C)  reimburse a homeowner for damage done by a visitor. 
D)  pay for medical expenses of people injured on your property. 
E)  pay for repairs caused by fire or other hazards.

Risk management is an organized strategy for protecting assets and people.

If you have a $2,000 claim resulting from a fire in your home and your policy stipulates that your deductible is $500, then the insurance company will pay you

What factors affect the cost of home insurance?

In the insurance industry, the term "peril" represents ________________.

Vicarious liability refers to

Your home insurance provides for replacement value for personal property losses. A microwave is stolen. It cost $300 two years ago and has an expected life of six years. A comparable microwave costs $200 today. What amount will the insurance company pay?

Anne has an expensive diamond ring. Which coverage from the following list would pay for damage or theft of this item?

Which of the following coverage's would pay for medical care for people who were injured in your automobile?

The requirement for a minimum level of home insurance coverage refers to which of the following?

The higher the deductible you choose for your car insurance, the higher the premium.

If a homeowner leaves toys on stairs that result in injury to a delivery person, this may be ruled as

Voluntary medical payments coverage in a home insurance policy is designed to pay for legal action taken against a homeowner who may be legally responsible for injury or property damage of others.

Which of the following is a system in which drivers involved in an accident collect medical expenses, lost wages, and related injury costs from their own insurance company?

Most home insurance policies provide coverage for

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

Which of the following are not covered by tenant's insurance?

Personal property refers to the contents of your home-clothes, furniture, appliances, and similar items covered by homeowner's insurance.

Tenant's insurance would include coverage for all of the following except

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

The additional living expenses component of a home insurance policy is designed to

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

Risk management is an organized strategy for protecting assets and people.

If you have a $2,000 claim resulting from a fire in your home and your policy stipulates that your deductible is $500, then the insurance company will pay you

What factors affect the cost of home insurance?

In the insurance industry, the term "peril" represents ________________.

Vicarious liability refers to

Your home insurance provides for replacement value for personal property losses. A microwave is stolen. It cost $300 two years ago and has an expected life of six years. A comparable microwave costs $200 today. What amount will the insurance company pay?

Anne has an expensive diamond ring. Which coverage from the following list would pay for damage or theft of this item?

Which of the following coverage's would pay for medical care for people who were injured in your automobile?

The requirement for a minimum level of home insurance coverage refers to which of the following?

The higher the deductible you choose for your car insurance, the higher the premium.

If a homeowner leaves toys on stairs that result in injury to a delivery person, this may be ruled as

Voluntary medical payments coverage in a home insurance policy is designed to pay for legal action taken against a homeowner who may be legally responsible for injury or property damage of others.

Which of the following is a system in which drivers involved in an accident collect medical expenses, lost wages, and related injury costs from their own insurance company?

Most home insurance policies provide coverage for

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

Which of the following are not covered by tenant's insurance?

Personal property refers to the contents of your home-clothes, furniture, appliances, and similar items covered by homeowner's insurance.

Tenant's insurance would include coverage for all of the following except

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

The additional living expenses component of a home insurance policy is designed to

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