Question 1

A friend wants to understand what affects the cost of auto insurance. Explain the factors used to determine the automobile insurance premiums a person pays.

Accepted Answer

The main factors that influence the amou

Question 2

The purpose of a high-risk pool is to

Accepted Answer

A)  provide insurance for poor drivers. 
B)  reduce medical costs associated with auto accidents. 
C)  take unsafe drivers off the road. 
D)  reduce auto insurance premiums with state regulation. 
E)  offer premium discounts to safe drivers. 
A)  provide insurance for poor drivers. 
B)  reduce medical costs associated with auto accidents. 
C)  take unsafe drivers off the road. 
D)  reduce auto insurance premiums with state regulation. 
E)  offer premium discounts to safe drivers.

Question 3

Ahmed Hadad was injured in an accident caused by another driver who did not have insurance. Ahmed's medical expenses would be covered by

Accepted Answer

A)  medical payments. 
B)  collision. 
C)  bodily injury liability. 
D)  uninsured motorist's protection. 
E)  no-fault coverage. 
A)  medical payments. 
B)  collision. 
C)  bodily injury liability. 
D)  uninsured motorist's protection. 
E)  no-fault coverage.

Question 4

Vicarious liability occurs when one person is held responsible for the actions of another person.

Accepted Answer

A) True 
 B)False

Question 5

High winds cause damage to trees, shrubs, and other plants. This insurance claim would be covered under the ____________ component of homeowner's insurance.

Accepted Answer

A)  additional living expenses 
B)  personal property 
C)  building and other structures 
D)  personal liability 
E)  property damage 
A)  additional living expenses 
B)  personal property 
C)  building and other structures 
D)  personal liability 
E)  property damage

Question 6

Risk management is not an organized strategy for protecting and conserving assets and people.

Accepted Answer

A) True 
 B)False

Question 7

Under the ____________ method for settling claims you receive the full cost of repairing or replacing a damaged or lost item and depreciation is not considered.

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 8

Property risks

Accepted Answer

A)  are the chance that something may be lost. 
B)  are the cause of a possible loss. 
C)  are legally defined as uninsurable. 
D)  are the uncertainties of direct or indirect losses to property due to fire, windstorms, accidents, theft, and other hazards. 
E)  are loss possibilities due to negligence resulting in bodily harm or property damage to others. 
A)  are the chance that something may be lost. 
B)  are the cause of a possible loss. 
C)  are legally defined as uninsurable. 
D)  are the uncertainties of direct or indirect losses to property due to fire, windstorms, accidents, theft, and other hazards. 
E)  are loss possibilities due to negligence resulting in bodily harm or property damage to others.

Question 9

Personal risks, property risks, and liability risks are types of speculative risks.

Accepted Answer

A) True 
 B)False

Question 10

While cleaning your home, a worker damages some furniture. You take action against the worker's employer to cover the cost of the damage. This is an example of a(n) ____________ liability.

Accepted Answer

A)  umbrella 
B)  assigned 
C)  common situation 
D)  peril 
E)  vicarious 
A)  umbrella 
B)  assigned 
C)  common situation 
D)  peril 
E)  vicarious

A friend wants to understand what affects the cost of auto insurance. Explain the factors used to determine the automobile insurance premiums a person pays.

The purpose of a high-risk pool is to

Ahmed Hadad was injured in an accident caused by another driver who did not have insurance. Ahmed's medical expenses would be covered by

Vicarious liability occurs when one person is held responsible for the actions of another person.

High winds cause damage to trees, shrubs, and other plants. This insurance claim would be covered under the ____________ component of homeowner's insurance.

Risk management is not an organized strategy for protecting and conserving assets and people.

Under the ____________ method for settling claims you receive the full cost of repairing or replacing a damaged or lost item and depreciation is not considered.

Property risks

Personal risks, property risks, and liability risks are types of speculative risks.

While cleaning your home, a worker damages some furniture. You take action against the worker's employer to cover the cost of the damage. This is an example of a(n) ____________ liability.

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

A friend wants to understand what affects the cost of auto insurance. Explain the factors used to determine the automobile insurance premiums a person pays.

The purpose of a high-risk pool is to

Ahmed Hadad was injured in an accident caused by another driver who did not have insurance. Ahmed's medical expenses would be covered by

Vicarious liability occurs when one person is held responsible for the actions of another person.

High winds cause damage to trees, shrubs, and other plants. This insurance claim would be covered under the ____________ component of homeowner's insurance.

Risk management is not an organized strategy for protecting and conserving assets and people.

Under the ____________ method for settling claims you receive the full cost of repairing or replacing a damaged or lost item and depreciation is not considered.

Property risks

Personal risks, property risks, and liability risks are types of speculative risks.

While cleaning your home, a worker damages some furniture. You take action against the worker's employer to cover the cost of the damage. This is an example of a(n) ____________ liability.

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