Question 1

Auto insurance rates are based upon all but your

Accepted Answer

A) age. 
B) height and weight. 
C) driving record. 
D) gender. 
A) age. 
B) height and weight. 
C) driving record. 
D) gender.

Question 2

Auto insurance rates are based upon

Accepted Answer

A) whether you keep your car in the garage or not. 
B) your marital status. 
C) the number of miles and the type of driving you do each year. 
D) the condition of your vehicle. 
A) whether you keep your car in the garage or not. 
B) your marital status. 
C) the number of miles and the type of driving you do each year. 
D) the condition of your vehicle.

Question 3

Since insurance companies rely mostly on their premiums to cover claims,they price their insurance policies to reflect the probability of a claim and the size of the claim.

Accepted Answer

A) True 
 B)False

Question 4

The best way to reduce your homeowner's insurance premiums is to

Accepted Answer

A) insure your home for only 60% of its value,since it is unlikely to be completely destroyed. 
B) drop coverage for medical payments. 
C) increase deductibles. 
D) eliminate liability coverage. 
A) insure your home for only 60% of its value,since it is unlikely to be completely destroyed. 
B) drop coverage for medical payments. 
C) increase deductibles. 
D) eliminate liability coverage.

Question 5

If you have an accident resulting in $2,000 damage to your car and have $500 deductible collision coverage,which of the following statements is true?

Accepted Answer

A) Your insurance company will pay $2,000. 
B) You will pay $1,500. 
C) You will pay the first $500 and your insurance company will pay $1,500. 
D) You and your insurance company will split the $2,000 damage,each paying $1,000. 
A) Your insurance company will pay $2,000. 
B) You will pay $1,500. 
C) You will pay the first $500 and your insurance company will pay $1,500. 
D) You and your insurance company will split the $2,000 damage,each paying $1,000.

Question 6

Collision coverage is normally limited to the car itself and not to items that were damaged while in the car.

Accepted Answer

A) True 
 B)False

Question 7

All of the following actions are suggestions to reduce your homeowner's insurance except

Accepted Answer

A) install better locks or a security system. 
B) don't make small claims against your policy. 
C) change insurance companies whenever you renew your policy. 
D) shop around and get quotes from several companies. 
A) install better locks or a security system. 
B) don't make small claims against your policy. 
C) change insurance companies whenever you renew your policy. 
D) shop around and get quotes from several companies.

Question 8

List two ways to reduce your homeowner's insurance premiums.

Accepted Answer

Any two of the following: ∙ Increase you

Question 9

You have cash value coverage for your personal property on your homeowner's policy.A camera that cost you $300 eight years ago had a life expectancy of 10 years.The camera was stolen,and a new one will cost only $200.How much will the insurance company pay?

Accepted Answer

A) $60 
B) $100 
C) $200 
D) $300 
A) $60 
B) $100 
C) $200 
D) $300

Question 10

What three insurance components do automobile and homeowner's policies usually have in common?

Accepted Answer

Liability,

Question 11

Having adequate amounts of auto and homeowner's insurance affects your financial plan by

Accepted Answer

A) limiting your liability to others. 
B) protecting your net worth and making it larger in the future. 
C) making you less likely to be sued. 
D) All of the above 
A) limiting your liability to others. 
B) protecting your net worth and making it larger in the future. 
C) making you less likely to be sued. 
D) All of the above

Question 12

All of the following statements about uninsured motorist coverage are true except

Accepted Answer

A) this coverage is recommended since many drivers are uninsured. 
B) it applies to accidents caused by a hit-and-run driver. 
C) it replaces bodily injury liability when you are at fault. 
D) it pays when a driver who is at fault has an insurance company that goes bankrupt 
A) this coverage is recommended since many drivers are uninsured. 
B) it applies to accidents caused by a hit-and-run driver. 
C) it replaces bodily injury liability when you are at fault. 
D) it pays when a driver who is at fault has an insurance company that goes bankrupt

Question 13

Your automobile insurance policy contains policy limits of 200/300/100.If you have an accident in which you are deemed at fault and two people sustain bodily injury that result in combined claims of $450,000,how much of the claim will not be covered under your insurance policy?
(a)$250,000
(b)$150,000
(c)$350,000
(d)$450,000

Accepted Answer

(b)The middle number,300,is th

Question 14

Which of the following is not true about the state financial liability laws?

Accepted Answer

A) They require individuals who drive cars to purchase a minimum amount of liability insurance. 
B) They are the same for all states. 
C) They may require proof of insurance to register a car. 
D) They may require proof of insurance when drivers are involved in an accident. 
A) They require individuals who drive cars to purchase a minimum amount of liability insurance. 
B) They are the same for all states. 
C) They may require proof of insurance to register a car. 
D) They may require proof of insurance when drivers are involved in an accident.

Question 15

Of the following statements,which is not true regarding no-fault insurance?

Accepted Answer

A) Not all states have no-fault insurance 
B) It helps determine which driver is at fault and which has no-fault 
C) It is intended to avoid costly legal battles 
D) It penalizes drivers who cause accidents 
A) Not all states have no-fault insurance 
B) It helps determine which driver is at fault and which has no-fault 
C) It is intended to avoid costly legal battles 
D) It penalizes drivers who cause accidents

Question 16

________ is not a suggested risk management method.

Accepted Answer

A) Avoiding risks 
B) Ignoring risks 
C) Accepting risks 
D) Insuring against risks 
A) Avoiding risks 
B) Ignoring risks 
C) Accepting risks 
D) Insuring against risks

Question 17

While renter's insurance does protect your property,it does not cover liability in the event that a friend or neighbor is injured while at your apartment.

Accepted Answer

A) True 
 B)False

Question 18

It is a good idea to list all of your personal assets,estimate the market value of each item,and then film the contents of your house with a video camera to be able to show proof of their existence.

Accepted Answer

A) True 
 B)False

Question 19

Collision and comprehensive coverage is optional in most states except if you are financing your car in which case you must have this coverage to protect the lender.

Accepted Answer

A) True 
 B)False

Question 20

You can use the Internet to obtain

Accepted Answer

A) estimates on auto insurance rates. 
B) new car prices. 
C) blue book values on used vehicles. 
D) All of the above. 
A) estimates on auto insurance rates. 
B) new car prices. 
C) blue book values on used vehicles. 
D) All of the above.

Auto insurance rates are based upon all but your

Auto insurance rates are based upon

Since insurance companies rely mostly on their premiums to cover claims,they price their insurance policies to reflect the probability of a claim and the size of the claim.

The best way to reduce your homeowner's insurance premiums is to

If you have an accident resulting in $2,000 damage to your car and have $500 deductible collision coverage,which of the following statements is true?

Collision coverage is normally limited to the car itself and not to items that were damaged while in the car.

All of the following actions are suggestions to reduce your homeowner's insurance except

List two ways to reduce your homeowner's insurance premiums.

You have cash value coverage for your personal property on your homeowner's policy.A camera that cost you $300 eight years ago had a life expectancy of 10 years.The camera was stolen,and a new one will cost only $200.How much will the insurance company pay?

What three insurance components do automobile and homeowner's policies usually have in common?

Having adequate amounts of auto and homeowner's insurance affects your financial plan by

All of the following statements about uninsured motorist coverage are true except

Which of the following is not true about the state financial liability laws?

Of the following statements,which is not true regarding no-fault insurance?

________ is not a suggested risk management method.

While renter's insurance does protect your property,it does not cover liability in the event that a friend or neighbor is injured while at your apartment.

It is a good idea to list all of your personal assets,estimate the market value of each item,and then film the contents of your house with a video camera to be able to show proof of their existence.

Collision and comprehensive coverage is optional in most states except if you are financing your car in which case you must have this coverage to protect the lender.

You can use the Internet to obtain

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

Exam 11: Auto and Homeowners Insurance

Auto insurance rates are based upon all but your

Auto insurance rates are based upon

Since insurance companies rely mostly on their premiums to cover claims,they price their insurance policies to reflect the probability of a claim and the size of the claim.

The best way to reduce your homeowner's insurance premiums is to

If you have an accident resulting in $2,000 damage to your car and have $500 deductible collision coverage,which of the following statements is true?

Collision coverage is normally limited to the car itself and not to items that were damaged while in the car.

All of the following actions are suggestions to reduce your homeowner's insurance except

List two ways to reduce your homeowner's insurance premiums.

You have cash value coverage for your personal property on your homeowner's policy.A camera that cost you $300 eight years ago had a life expectancy of 10 years.The camera was stolen,and a new one will cost only $200.How much will the insurance company pay?

What three insurance components do automobile and homeowner's policies usually have in common?

Having adequate amounts of auto and homeowner's insurance affects your financial plan by

All of the following statements about uninsured motorist coverage are true except

Which of the following is not true about the state financial liability laws?

Of the following statements,which is not true regarding no-fault insurance?

________ is not a suggested risk management method.

While renter's insurance does protect your property,it does not cover liability in the event that a friend or neighbor is injured while at your apartment.

It is a good idea to list all of your personal assets,estimate the market value of each item,and then film the contents of your house with a video camera to be able to show proof of their existence.

Collision and comprehensive coverage is optional in most states except if you are financing your car in which case you must have this coverage to protect the lender.

You can use the Internet to obtain

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