Question 1

Your home insurance policy has a $250 deductible.If a small fire causes $600 damage to your home,what amount of the claim would the insurance company pay?

Accepted Answer

A) $250 
B) $350 
C) $450 
D) $600 
A) $250 
B) $350 
C) $450 
D) $600 B

Question 2

Which risk management alternative is feasible when the likelihood of an event that could cause a financial loss is very low and the potential financial loss due to the event is small?

Accepted Answer

A) Avoid risk 
B) Reduce risk 
C) Accept risk 
D) Insure against risk 
A) Avoid risk 
B) Reduce risk 
C) Accept risk 
D) Insure against risk C

Question 3

In general,the most expensive part of your automobile policy is ________ coverage.

Accepted Answer

A) liability 
B) comprehensive and collision 
C) medical payments 
D) uninsured motorist 
A) liability 
B) comprehensive and collision 
C) medical payments 
D) uninsured motorist A

Question 4

The insurance that will cover your possessions if you lease an apartment is called ________.

Accepted Answer

The answer of The insurance that will cover your possessions...

Question 5

All other things being equal,which of the following people would have the lowest insurance rates?

Accepted Answer

A) A person living in a small town compared to a large one 
B) A person who drives his or her car to work rather than for pleasure 
C) A person with a speeding ticket versus a person with three parking tickets 
D) A person with a car alarm versus a person with anti-lock brakes and airbags 
A) A person living in a small town compared to a large one 
B) A person who drives his or her car to work rather than for pleasure 
C) A person with a speeding ticket versus a person with three parking tickets 
D) A person with a car alarm versus a person with anti-lock brakes and airbags

Question 6

Medical payments coverage insures against costs of medical care for you and other passengers in your car when you are at fault in an accident.

Accepted Answer

A) True 
 B)False

Question 7

Auto insurance discounts are given for all except which of the following?

Accepted Answer

A) Anti-lock brakes 
B) Alarms 
C) Leather seats 
D) Airbags 
A) Anti-lock brakes 
B) Alarms 
C) Leather seats 
D) Airbags

Question 8

Some states have implemented ________ insurance programs which do not hold a specific driver liable for causing an accident.

Accepted Answer

The answer of Some states have implemented ________ insurance programs...

Question 9

Legal expenses incurred by an insurance company when defending you against a lawsuit are deducted from your limits of liability coverage.

Accepted Answer

A) True 
 B)False

Question 10

People are more willing to purchase or increase their insurance coverage when

Accepted Answer

A) economic conditions are favorable and incomes are lower. 
B) economic conditions are favorable and incomes are higher. 
C) economic conditions are weak and incomes are lower. 
D) None of the above. 
A) economic conditions are favorable and incomes are lower. 
B) economic conditions are favorable and incomes are higher. 
C) economic conditions are weak and incomes are lower. 
D) None of the above.

Question 11

One method of managing risk is to accept risk by seeking to limit your exposure to a financial loss.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following would be considered the most high-risk driver?

Accepted Answer

A) Nineteen year old female 
B) Nineteen year old male 
C) Twenty-eight year old female 
D) Twenty-eight year old male 
A) Nineteen year old female 
B) Nineteen year old male 
C) Twenty-eight year old female 
D) Twenty-eight year old male

Question 13

Some credit cards provide you with collision and comprehensive insurance benefits if you use that card to pay for car rentals.

Accepted Answer

A) True 
 B)False

Question 14

States with no-fault insurance programs do not hold specific drivers liable for causing accidents.

Accepted Answer

A) True 
 B)False

Question 15

Since insurance is a regulated industry,the rates for automobile policies are relatively the same among different companies operating in a state.

Accepted Answer

A) True 
 B)False

Question 16

Your home insurance provides for replacement value for personal property losses.Your china hutch was vandalized and completely destroyed.Your hutch cost $400 four years ago,but a new one will cost you $600.How much will the insurance company pay?

Accepted Answer

A) $400 
B) $200 
C) $600 
D) Nothing,vandalism is not covered. 
A) $400 
B) $200 
C) $600 
D) Nothing,vandalism is not covered.

Question 17

If an insurance policy carries a $250 deductible and an accident results in the following losses,what will be the reimbursement from the insurance company under your collision and comprehensive coverage?
∙ Replacement of trailer hitch $200
∙ Replacement of rear bumper $150
∙ Replacement of computer being carried in back seat $300
∙ Replacement of rear windshield $100
(a)$200
(b)$250
(c)450
(d)750

Accepted Answer

The answer of If an insurance policy carries a $250...

Question 18

Property damage liability covers damages to your car from accidents that are your fault.

Accepted Answer

A) True 
 B)False

Question 19

In the context of insurance,the term liability is used to mean that you may be required to pay someone for damages that you caused.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is true of renter's insurance?

Accepted Answer

A) You only need to buy it if you have possessions of considerable value 
B) It will not cover your liability if a picture falls off the wall and injures a guest in your apartment 
C) Your renter's insurance covers only your own property,not the property of your landlord 
D) Because premiums are small,most people who need it have renter's insurance 
A) You only need to buy it if you have possessions of considerable value 
B) It will not cover your liability if a picture falls off the wall and injures a guest in your apartment 
C) Your renter's insurance covers only your own property,not the property of your landlord 
D) Because premiums are small,most people who need it have renter's insurance

Your home insurance policy has a $250 deductible.If a small fire causes $600 damage to your home,what amount of the claim would the insurance company pay?

Which risk management alternative is feasible when the likelihood of an event that could cause a financial loss is very low and the potential financial loss due to the event is small?

In general,the most expensive part of your automobile policy is ________ coverage.

The insurance that will cover your possessions if you lease an apartment is called ________.

All other things being equal,which of the following people would have the lowest insurance rates?

Medical payments coverage insures against costs of medical care for you and other passengers in your car when you are at fault in an accident.

Auto insurance discounts are given for all except which of the following?

Some states have implemented ________ insurance programs which do not hold a specific driver liable for causing an accident.

Legal expenses incurred by an insurance company when defending you against a lawsuit are deducted from your limits of liability coverage.

People are more willing to purchase or increase their insurance coverage when

One method of managing risk is to accept risk by seeking to limit your exposure to a financial loss.

Which of the following would be considered the most high-risk driver?

Some credit cards provide you with collision and comprehensive insurance benefits if you use that card to pay for car rentals.

States with no-fault insurance programs do not hold specific drivers liable for causing accidents.

Since insurance is a regulated industry,the rates for automobile policies are relatively the same among different companies operating in a state.

Your home insurance provides for replacement value for personal property losses.Your china hutch was vandalized and completely destroyed.Your hutch cost $400 four years ago,but a new one will cost you $600.How much will the insurance company pay?

Property damage liability covers damages to your car from accidents that are your fault.

In the context of insurance,the term liability is used to mean that you may be required to pay someone for damages that you caused.

Which of the following is true of renter's insurance?

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

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Exam 11: Auto and Homeowners Insurance

Your home insurance policy has a $250 deductible.If a small fire causes $600 damage to your home,what amount of the claim would the insurance company pay?

Which risk management alternative is feasible when the likelihood of an event that could cause a financial loss is very low and the potential financial loss due to the event is small?

In general,the most expensive part of your automobile policy is ________ coverage.

The insurance that will cover your possessions if you lease an apartment is called ________.

All other things being equal,which of the following people would have the lowest insurance rates?

Medical payments coverage insures against costs of medical care for you and other passengers in your car when you are at fault in an accident.

Auto insurance discounts are given for all except which of the following?

Some states have implemented ________ insurance programs which do not hold a specific driver liable for causing an accident.

Legal expenses incurred by an insurance company when defending you against a lawsuit are deducted from your limits of liability coverage.

People are more willing to purchase or increase their insurance coverage when

One method of managing risk is to accept risk by seeking to limit your exposure to a financial loss.

Which of the following would be considered the most high-risk driver?

Some credit cards provide you with collision and comprehensive insurance benefits if you use that card to pay for car rentals.

States with no-fault insurance programs do not hold specific drivers liable for causing accidents.

Since insurance is a regulated industry,the rates for automobile policies are relatively the same among different companies operating in a state.

Your home insurance provides for replacement value for personal property losses.Your china hutch was vandalized and completely destroyed.Your hutch cost $400 four years ago,but a new one will cost you $600.How much will the insurance company pay?

Property damage liability covers damages to your car from accidents that are your fault.

In the context of insurance,the term liability is used to mean that you may be required to pay someone for damages that you caused.

Which of the following is true of renter's insurance?

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters