Question 1

Purchasing a technology stock that may or may not increase in price is an example of ___________ risk.

Accepted Answer

A)  speculative 
B)  pure 
C)  commercial 
D)  personal 
E)  liability 
A)  speculative 
B)  pure 
C)  commercial 
D)  personal 
E)  liability

Question 2

The legal responsibility for the financial cost of another person's losses or injuries is referred to as

Accepted Answer

A)  theft. 
B)  robbery. 
C)  liability. 
D)  assigned risk. 
E)  collusion. 
A)  theft. 
B)  robbery. 
C)  liability. 
D)  assigned risk. 
E)  collusion.

Question 3

Defective house wiring is an example of a

Accepted Answer

A)  hazard. 
B)  peril. 
C)  risk. 
D)  speculation. 
E)  negligence. 
A)  hazard. 
B)  peril. 
C)  risk. 
D)  speculation. 
E)  negligence.

Question 4

Identify the areas covered by tenants' insurance. 
I. Personal property protection.
II. Additional living expenses.
III. Personal liability.
IV. Replacement value of premises.

Accepted Answer

A)  I, II and III only 
B)  I and III only 
C)  II, III and IV only 
D)  I, II, III and IV 
E)  I, II, and IV 
A)  I, II and III only 
B)  I and III only 
C)  II, III and IV only 
D)  I, II, III and IV 
E)  I, II, and IV

Question 5

Hazard

Accepted Answer

A)  is the chance that something may be lost. 
B)  is the cause of a possible loss. 
C)  increases the likelihood of loss through some peril. 
D)  is loss possibilities due to negligence resulting in bodily harm or property damage to others. 
E)  is a risk that carries a chance of either loss or gain. 
A)  is the chance that something may be lost. 
B)  is the cause of a possible loss. 
C)  increases the likelihood of loss through some peril. 
D)  is loss possibilities due to negligence resulting in bodily harm or property damage to others. 
E)  is a risk that carries a chance of either loss or gain.

Question 6

________ is an automobile insurance program in which drivers involved in accidents collect medical expenses, lost wages, and related injury costs from their own insurance companies.

Accepted Answer

A)  Medical payments 
B)  No-fault insurance 
C)  Uninsured motorist's protection 
D)  Bodily injury liability 
E)  Comprehensive insurance 
A)  Medical payments 
B)  No-fault insurance 
C)  Uninsured motorist's protection 
D)  Bodily injury liability 
E)  Comprehensive insurance

Question 7

Which of the following home insurance policies will have the highest premium? $\begin{array}{c}
\begin{array}{lll}
\text{Policy Form}\
\text{Standard}\
\text{Broad}\
\text{Comprehensive}\
\end{array}
\begin{array}{lll}
\text{Building}\
\text{Named perils}\
\text{All risk}\
\text{All risk}\
\end{array}
\begin{array}{lll}
\text{Contents}\
\text{Named perils}\
\text{Named perils}\
\text{All risk}\
\end{array}
\end{array}$

Accepted Answer

A)  Standard 
B)  Broad 
C)  Comprehensive 
D)  All forms will have the same cost. 
E)  Broad and Comprehensive are equally expensive 
A)  Standard 
B)  Broad 
C)  Comprehensive 
D)  All forms will have the same cost. 
E)  Broad and Comprehensive are equally expensive

Question 8

Wind damage occurs to your car costing $3,000 to repair. If you have a $500 deductible for collision and full coverage for comprehensive, what portion of the claim will the insurance company pay?

Accepted Answer

A)  $500 
B)  $1,300 
C)  $2,500 
D)  $3,000 
E)  $3,500 
A)  $500 
B)  $1,300 
C)  $2,500 
D)  $3,000 
E)  $3,500

Question 9

Comprehensive coverage would cover financial losses due to

Accepted Answer

A)  injuries caused by a driver without insurance. 
B)  damage to your car in an accident for which you were at fault. 
C)  damage to your car caused by wind or hail. 
D)  legal action against you for an accident. 
E)  damage to a neighbor's tree with your car. 
A)  injuries caused by a driver without insurance. 
B)  damage to your car in an accident for which you were at fault. 
C)  damage to your car caused by wind or hail. 
D)  legal action against you for an accident. 
E)  damage to a neighbor's tree with your car.

Question 10

Driver classification is a category based on the driver's age, gender, marital status, driving record, and driving habits

Accepted Answer

A) True 
 B)False

Question 11

Your geographic location is a major factor in determining the ____________ used to calculate your automobile insurance premiums.

Accepted Answer

A)  driver classification 
B)  assigned risk pool 
C)  coverage level 
D)  legal responsibilities 
E)  rating territory 
A)  driver classification 
B)  assigned risk pool 
C)  coverage level 
D)  legal responsibilities 
E)  rating territory

Question 12

The purpose of minimum insurance legislation is to

Accepted Answer

A)  risk of injury or death. 
B)  possibility of damage, destruction or theft. 
C)  third party liability. 
D)  A and B are correct. 
E)  A, B and C are correct. 
A)  risk of injury or death. 
B)  possibility of damage, destruction or theft. 
C)  third party liability. 
D)  A and B are correct. 
E)  A, B and C are correct.

Question 13

Your home insurance provides for replacement value for personal property losses. A television is stolen. It cost $1,000 two years ago and has an expected life of 5 years. A comparable television costs $500 today. What amount will the insurance company pay?

Accepted Answer

A)  $100 
B)  $150 
C)  $200 
D)  $350 
E)  $500 
A)  $100 
B)  $150 
C)  $200 
D)  $350 
E)  $500

Question 14

Replacement cost for settling property insurance claims is more costly than the actual cash value method.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is likely to increase your car insurance premium? 
I. You live in a rural area.
II. You are over 70.
III. You usually carry several passengers.

Accepted Answer

A)  I and II, only 
B)  II and III, only 
C)  I and III, only 
D)  I, II and III 
E)  I only 
A)  I and II, only 
B)  II and III, only 
C)  I and III, only 
D)  I, II and III 
E)  I only

Question 16

The most common method of dealing with risk is to shift, or transfer it to an insurance company or some other organization.

Accepted Answer

A) True 
 B)False

Question 17

The purpose of a household inventory is to

Accepted Answer

A)  reduce insurance costs. 
B)  lower the chance of negligence 
C)  obtain personal property floater coverage. 
D)  increase liability coverage. 
E)  verify owned property. 
A)  reduce insurance costs. 
B)  lower the chance of negligence 
C)  obtain personal property floater coverage. 
D)  increase liability coverage. 
E)  verify owned property.

Question 18

What events are commonly covered in a homeowner's insurance policy?

Accepted Answer

Most home insurance policies include cov

Question 19

Home insurance costs are affected most directly by

Accepted Answer

A)  the number of claims in an area. 
B)  insurance agents' commission. 
C)  government regulations that set premiums. 
D)  processing costs of claims. 
E)  the profits of the insurance company. 
A)  the number of claims in an area. 
B)  insurance agents' commission. 
C)  government regulations that set premiums. 
D)  processing costs of claims. 
E)  the profits of the insurance company.

Question 20

The purpose of a high-risk pool is to assist people with poor driving records in obtaining automobile insurance coverage.

Accepted Answer

A) True 
 B)False

Purchasing a technology stock that may or may not increase in price is an example of ___________ risk.

The legal responsibility for the financial cost of another person's losses or injuries is referred to as

Defective house wiring is an example of a

Identify the areas covered by tenants' insurance. I. Personal property protection. II. Additional living expenses. III. Personal liability. IV. Replacement value of premises.

Hazard

________ is an automobile insurance program in which drivers involved in accidents collect medical expenses, lost wages, and related injury costs from their own insurance companies.

Which of the following home insurance policies will have the highest premium? Policy Form Standard Broad Comprehensive Building Named perils All risk All risk Contents Named perils Named perils All risk

Wind damage occurs to your car costing $3,000 to repair. If you have a $500 deductible for collision and full coverage for comprehensive, what portion of the claim will the insurance company pay?

Comprehensive coverage would cover financial losses due to

Driver classification is a category based on the driver's age, gender, marital status, driving record, and driving habits

Your geographic location is a major factor in determining the ____________ used to calculate your automobile insurance premiums.

The purpose of minimum insurance legislation is to

Your home insurance provides for replacement value for personal property losses. A television is stolen. It cost $1,000 two years ago and has an expected life of 5 years. A comparable television costs $500 today. What amount will the insurance company pay?

Replacement cost for settling property insurance claims is more costly than the actual cash value method.

Which of the following is likely to increase your car insurance premium? I. You live in a rural area. II. You are over 70. III. You usually carry several passengers.

The most common method of dealing with risk is to shift, or transfer it to an insurance company or some other organization.

The purpose of a household inventory is to

What events are commonly covered in a homeowner's insurance policy?

Home insurance costs are affected most directly by

The purpose of a high-risk pool is to assist people with poor driving records in obtaining automobile 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

Exam 8: Home and Automobile Insurance

Purchasing a technology stock that may or may not increase in price is an example of ___________ risk.

The legal responsibility for the financial cost of another person's losses or injuries is referred to as

Defective house wiring is an example of a

Identify the areas covered by tenants' insurance. I. Personal property protection. II. Additional living expenses. III. Personal liability. IV. Replacement value of premises.

Hazard

________ is an automobile insurance program in which drivers involved in accidents collect medical expenses, lost wages, and related injury costs from their own insurance companies.

Which of the following home insurance policies will have the highest premium? Policy Form Standard Broad Comprehensive Building Named perils All risk All risk Contents Named perils Named perils All risk

Wind damage occurs to your car costing $3,000 to repair. If you have a $500 deductible for collision and full coverage for comprehensive, what portion of the claim will the insurance company pay?

Comprehensive coverage would cover financial losses due to

Driver classification is a category based on the driver's age, gender, marital status, driving record, and driving habits

Your geographic location is a major factor in determining the ____________ used to calculate your automobile insurance premiums.

The purpose of minimum insurance legislation is to

Your home insurance provides for replacement value for personal property losses. A television is stolen. It cost $1,000 two years ago and has an expected life of 5 years. A comparable television costs $500 today. What amount will the insurance company pay?

Replacement cost for settling property insurance claims is more costly than the actual cash value method.

Which of the following is likely to increase your car insurance premium? I. You live in a rural area. II. You are over 70. III. You usually carry several passengers.

The most common method of dealing with risk is to shift, or transfer it to an insurance company or some other organization.

The purpose of a household inventory is to

What events are commonly covered in a homeowner's insurance policy?

Home insurance costs are affected most directly by

The purpose of a high-risk pool is to assist people with poor driving records in obtaining automobile 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