Question 1

Auto insurance rates are based upon all of the following except 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

Most states have financial responsibility laws that require individuals who drive cars to purchase a minimum amount of liability insurance.

Accepted Answer

A) True 
 B)False

Question 3

All of the following may qualify so an applicant for an auto insurance discount,except

Accepted Answer

A)  making high grades. 
B)  completing a driver's training program. 
C)  having several cars insured with the same company. 
D)  being under 25 years old. 
A)  making high grades. 
B)  completing a driver's training program. 
C)  having several cars insured with the same company. 
D)  being under 25 years old.

Question 4

A cash value home insurance policy pays the actual costs of replacing the damaged property.

Accepted Answer

A) True 
 B)False

Question 5

A personal umbrella policy provides liability coverage to replace coverage that would normally be provided by an automobile or homeowner's policy.

Accepted Answer

A) True 
 B)False

Question 6

If your car is in an accident with another person who has no auto insurance,which of the following statements is not correct?

Accepted Answer

A)  Your uninsured motorist coverage will cover you and your car. 
B)  Many states in the U.S. will cover you and your car from their insurance fund. 
C)  You are not covered if the accident was your fault. 
D)  Both B and C are incorrect 
A)  Your uninsured motorist coverage will cover you and your car. 
B)  Many states in the U.S. will cover you and your car from their insurance fund. 
C)  You are not covered if the accident was your fault. 
D)  Both B and C are incorrect

Question 7

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 8

The additional living expenses component of a homeowner's policy is designed to

Accepted Answer

A)  pay for temporary housing while your home is repaired from covered damage. 
B)  cover damage to your property while you are away from home. 
C)  reimburse a homeowner for damage done by a visitor. 
D)  pay for medical expenses or people injured on your property. 
A)  pay for temporary housing while your home is repaired from covered damage. 
B)  cover damage to your property while you are away from home. 
C)  reimburse a homeowner for damage done by a visitor. 
D)  pay for medical expenses or people injured on your property.

Question 9

All of the following actions are possible ways to reduce your homeowner's insurance,except

Accepted Answer

A)  installing better locks or a security system. 
B)  not making small claims against your policy. 
C)  changing insurance companies whenever you renew your policy. 
D)  shopping around and getting quotes from several companies. 
A)  installing better locks or a security system. 
B)  not making small claims against your policy. 
C)  changing insurance companies whenever you renew your policy. 
D)  shopping around and getting quotes from several companies.

Question 10

Which of the following is not covered in a standard homeowner's policy?

Accepted Answer

A)  Lightning hits your house and it burns to the ground. 
B)  Your house is broken into and all the furniture is stolen. 
C)  The river near your house overflows its bank and washes your house away. 
D)  A hailstorm damages the roof of your house. 
A)  Lightning hits your house and it burns to the ground. 
B)  Your house is broken into and all the furniture is stolen. 
C)  The river near your house overflows its bank and washes your house away. 
D)  A hailstorm damages the roof of your house.

Question 11

Which of the following statements is not true concerning comprehensive and collision insurance?

Accepted Answer

A)  If you are financing a car, this insurance is required by the lender. 
B)  Financially, it is advisable to take out the lowest deductible possible. 
C)  You may want to drop this coverage on an older car that is not being financed. 
D)  The deductible is really a form of self insurance. 
A)  If you are financing a car, this insurance is required by the lender. 
B)  Financially, it is advisable to take out the lowest deductible possible. 
C)  You may want to drop this coverage on an older car that is not being financed. 
D)  The deductible is really a form of self insurance.

Question 12

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 13

The liability component of your homeowner's policy will cover all of the following situations except one.Which situation will not be covered?

Accepted Answer

A)  Your dog bites a guest and the guest sues you. 
B)  While your accountant is visiting you, she trips on your carpet and sues you. 
C)  Your neighbor who thinks you have promised to trim a tree in his yard sues you for not doing it. 
D)  An uninvited salesman walking up your sidewalk trips and falls. He sues you. 
A)  Your dog bites a guest and the guest sues you. 
B)  While your accountant is visiting you, she trips on your carpet and sues you. 
C)  Your neighbor who thinks you have promised to trim a tree in his yard sues you for not doing it. 
D)  An uninvited salesman walking up your sidewalk trips and falls. He sues you.

Question 14

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

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 15

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

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Underwriters for an insurance company do not

Accepted Answer

A)  market insurance policies. 
B)  calculate the risks of specific policies. 
C)  decide what insurance policies to offer. 
D)  decide what premiums to charge. 
A)  market insurance policies. 
B)  calculate the risks of specific policies. 
C)  decide what insurance policies to offer. 
D)  decide what premiums to charge.

Question 18

The ________ is the amount that you will need to pay if your car is damaged in an accident that was your fault.

Accepted Answer

The answer of The ________ is the amount that you...

Question 19

Homeowners insurance premiums are heavily influenced by all of the following except

Accepted Answer

A)  number of children who live in the home. 
B)  amount of the deductible. 
C)  location of the residence. 
D)  degree of protection desired. 
A)  number of children who live in the home. 
B)  amount of the deductible. 
C)  location of the residence. 
D)  degree of protection desired.

Question 20

The insurance agent's role includes all of the following,except for

Accepted Answer

A)  assessing the client's risk of loss. 
B)  assisting the client in determining the amount of insurance they may need. 
C)  working with the insurance company to prepare the client's insurance policy. 
D)  assisting the client in filing a claim for coverage. 
A)  assessing the client's risk of loss. 
B)  assisting the client in determining the amount of insurance they may need. 
C)  working with the insurance company to prepare the client's insurance policy. 
D)  assisting the client in filing a claim for coverage.

Exam 11: Auto and Homeowners Insurance

Auto insurance rates are based upon all of the following except your

Most states have financial responsibility laws that require individuals who drive cars to purchase a minimum amount of liability insurance.

All of the following may qualify so an applicant for an auto insurance discount,except

A cash value home insurance policy pays the actual costs of replacing the damaged property.

A personal umbrella policy provides liability coverage to replace coverage that would normally be provided by an automobile or homeowner's policy.

If your car is in an accident with another person who has no auto insurance,which of the following statements is not correct?

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

The additional living expenses component of a homeowner's policy is designed to

All of the following actions are possible ways to reduce your homeowner's insurance,except

Which of the following is not covered in a standard homeowner's policy?

Which of the following statements is not true concerning comprehensive and collision insurance?

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

The liability component of your homeowner's policy will cover all of the following situations except one.Which situation will not be covered?

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

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

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

Underwriters for an insurance company do not

The ________ is the amount that you will need to pay if your car is damaged in an accident that was your fault.

Homeowners insurance premiums are heavily influenced by all of the following except

The insurance agent's role includes all of the following,except for

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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