Question 1

Which of the following is not correct?

Accepted Answer

A)  Renter's insurance is important if you own an expensive TV and game center. 
B)  Renter's insurance covers your possessions and provides liability coverage for you. 
C)  Your auto insurance policy will cover valuable possessions if you keep them in your garage with your car. 
D)  Renter's insurance does not cover the structure of your apartment or rental home. 
A)  Renter's insurance is important if you own an expensive TV and game center. 
B)  Renter's insurance covers your possessions and provides liability coverage for you. 
C)  Your auto insurance policy will cover valuable possessions if you keep them in your garage with your car. 
D)  Renter's insurance does not cover the structure of your apartment or rental home. C

Question 2

Individuals who need additional protection often supplement their auto and homeowner's policy with a(n)________ personal liability policy.

Accepted Answer

umbrella

Question 3

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. C

Question 4

The 100 in 100/300/50 refers to the

Accepted Answer

A)  property damage liability coverage. 
B)  limit for bodily injury claims that can be paid to one person. 
C)  amount of the deductible. 
D)  total coverage for an accident. 
A)  property damage liability coverage. 
B)  limit for bodily injury claims that can be paid to one person. 
C)  amount of the deductible. 
D)  total coverage for an accident.

Question 5

Insurance can protect your existing net worth and also increase the likelihood that you will be able to increase your net worth in the future.

Accepted Answer

A) True 
 B)False

Question 6

Auto insurance fraud is not a problem in states that have implemented no-fault insurance programs.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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 9

Events that are typically not covered by your homeowner's insurance include all of the following,except

Accepted Answer

A)  termites. 
B)  bursting of frozen pipes. 
C)  earthquakes. 
D)  nuclear accidents. 
A)  termites. 
B)  bursting of frozen pipes. 
C)  earthquakes. 
D)  nuclear accidents.

Question 10

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

Question 11

Use the following two columns of items to answer the matching questions below:
-medical payments coverage

Accepted Answer

A) requires individuals who drive cars to purchase a minimum amount of liability insurance 
B) pays for injuries to you or people in your car in an accident where you (the driver) are at fault 
C) a set dollar amount that you are responsible for paying before any coverage is provided by your insurer 
D) covers damage to your car as a result of theft, fire, vandalism, or various other events 
E) vehicle insurance to cover various injuries, your property, and the property of others
F)covers damage to your car when you are at fault in an accident 
A) requires individuals who drive cars to purchase a minimum amount of liability insurance 
B) pays for injuries to you or people in your car in an accident where you (the driver) are at fault 
C) a set dollar amount that you are responsible for paying before any coverage is provided by your insurer 
D) covers damage to your car as a result of theft, fire, vandalism, or various other events 
E) vehicle insurance to cover various injuries, your property, and the property of others
F)covers damage to your car when you are at fault in an accident

Question 12

All other things being equal,which of the following factors could lower a person's auto insurance rates?

Accepted Answer

A)  Living in a small town 
B)  Driving the car to work rather than for pleasure only 
C)  Receiving a parking ticket 
D)  having a poor credit history 
A)  Living in a small town 
B)  Driving the car to work rather than for pleasure only 
C)  Receiving a parking ticket 
D)  having a poor credit history

Question 13

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 on the back seat $300
∙ Replacement of rear windshield $100

Accepted Answer

A)  $200 
B)  $250 
C)  $450 
D)  $750 
A)  $200 
B)  $250 
C)  $450 
D)  $750

Question 14

Insurance protects you against potential financial losses or liability that result from unexpected events.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not a service company that would rate the financial condition of insurance companies?

Accepted Answer

A)  A.M. Best 
B)  Kelly's Blue Book 
C)  Moody's Investor Services 
D)  Standard and Poor's Corporation 
A)  A.M. Best 
B)  Kelly's Blue Book 
C)  Moody's Investor Services 
D)  Standard and Poor's Corporation

Question 16

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 17

Which of the following is not a characteristic of an umbrella policy?

Accepted Answer

A)  It provides additional liability insurance. 
B)  It replaces other policies. 
C)  It protects wealth. 
D)  It is optional coverage. 
A)  It provides additional liability insurance. 
B)  It replaces other policies. 
C)  It protects wealth. 
D)  It is optional coverage.

Question 18

Use the following two columns of items to answer the matching questions below:
-auto insurance

Accepted Answer

A) requires individuals who drive cars to purchase a minimum amount of liability insurance 
B) pays for injuries to you or people in your car in an accident where you (the driver) are at fault 
C) a set dollar amount that you are responsible for paying before any coverage is provided by your insurer 
D) covers damage to your car as a result of theft, fire, vandalism, or various other events 
E) vehicle insurance to cover various injuries, your property, and the property of others
F)covers damage to your car when you are at fault in an accident 
A) requires individuals who drive cars to purchase a minimum amount of liability insurance 
B) pays for injuries to you or people in your car in an accident where you (the driver) are at fault 
C) a set dollar amount that you are responsible for paying before any coverage is provided by your insurer 
D) covers damage to your car as a result of theft, fire, vandalism, or various other events 
E) vehicle insurance to cover various injuries, your property, and the property of others
F)covers damage to your car when you are at fault in an accident

Question 19

In general,insurance companies generate their revenue from the payments received for policies and from the return earned from investing the payments until the funds are needed to cover claims.

Accepted Answer

A) True 
 B)False

Question 20

Independent insurance agents work for one particular company.

Accepted Answer

A) True 
 B)False

Which of the following is not correct?

Individuals who need additional protection often supplement their auto and homeowner's policy with a(n)________ personal liability policy.

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?

The 100 in 100/300/50 refers to the

Insurance can protect your existing net worth and also increase the likelihood that you will be able to increase your net worth in the future.

Auto insurance fraud is not a problem in states that have implemented no-fault insurance programs.

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

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

Events that are typically not covered by your homeowner's insurance include all of the following,except

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?

Use the following two columns of items to answer the matching questions below: -medical payments coverage

All other things being equal,which of the following factors could lower a person's auto insurance rates?

Insurance protects you against potential financial losses or liability that result from unexpected events.

Which of the following is not a service company that would rate the financial condition of insurance companies?

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.

Which of the following is not a characteristic of an umbrella policy?

Use the following two columns of items to answer the matching questions below: -auto insurance

In general,insurance companies generate their revenue from the payments received for policies and from the return earned from investing the payments until the funds are needed to cover claims.

Independent insurance agents work for one particular company.

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

Which of the following is not correct?

Individuals who need additional protection often supplement their auto and homeowner's policy with a(n)________ personal liability policy.

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?

The 100 in 100/300/50 refers to the

Insurance can protect your existing net worth and also increase the likelihood that you will be able to increase your net worth in the future.

Auto insurance fraud is not a problem in states that have implemented no-fault insurance programs.

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

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

Events that are typically not covered by your homeowner's insurance include all of the following,except

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?

Use the following two columns of items to answer the matching questions below: -medical payments coverage

All other things being equal,which of the following factors could lower a person's auto insurance rates?

Insurance protects you against potential financial losses or liability that result from unexpected events.

Which of the following is not a service company that would rate the financial condition of insurance companies?

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.

Which of the following is not a characteristic of an umbrella policy?

Use the following two columns of items to answer the matching questions below: -auto insurance

In general,insurance companies generate their revenue from the payments received for policies and from the return earned from investing the payments until the funds are needed to cover claims.

Independent insurance agents work for one particular company.

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