Question 1

If your neighbor falls down the steps in your home and sues,you could be held responsible for her injuries.

Accepted Answer

A) True 
 B)False

Question 2

Having liability coverage as part of auto and homeowner's policies helps protect your ________ in the event of an accident.

Accepted Answer

A)  insurance rates 
B)  credit rating 
C)  net worth 
D)  house value 
A)  insurance rates 
B)  credit rating 
C)  net worth 
D)  house value

Question 3

The primary function of insurance is to

Accepted Answer

A)  insure you against all types of risk. 
B)  become wealthy from the claims you file. 
C)  maintain your existing level of wealth. 
D)  give you peace of mind. 
A)  insure you against all types of risk. 
B)  become wealthy from the claims you file. 
C)  maintain your existing level of wealth. 
D)  give you peace of mind.

Question 4

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 5

In the context of insurance,the term liability is used to mean that you may be required to pay other individuals for damages that you caused to them or their property.

Accepted Answer

A) True 
 B)False

Question 6

Use the following two columns of items to answer the matching questions below:
-financial responsibility laws

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 7

Which of the following is the only required coverage if you do not have a lien on your car?

Accepted Answer

A)  Liability coverage 
B)  Medical payments to others 
C)  Collision and comprehensive coverage 
D)  None of the coverages are required 
A)  Liability coverage 
B)  Medical payments to others 
C)  Collision and comprehensive coverage 
D)  None of the coverages are required

Question 8

If you have a car accident in which a person in the other car is injured,the type of insurance that would protect you from financial loss is

Accepted Answer

A)  life insurance. 
B)  homeowners insurance. 
C)  health insurance. 
D)  auto insurance. 
A)  life insurance. 
B)  homeowners insurance. 
C)  health insurance. 
D)  auto insurance.

Question 9

Homeowner's insurance provides insurance in the event of property damage or personal liability relating to home ownership,but not theft.

Accepted Answer

A) True 
 B)False

Question 10

The 25 in 50/100/25 refers to ________ coverage.

Accepted Answer

A)  collision 
B)  bodily injury liability 
C)  comprehensive physical damage 
D)  property damage liability 
A)  collision 
B)  bodily injury liability 
C)  comprehensive physical damage 
D)  property damage liability

Question 11

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

Accepted Answer

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

Question 12

Most home insurance policies provide coverage for

Accepted Answer

A)  earthquake damage. 
B)  liability. 
C)  flood damage. 
D)  additional personal property floaters. 
A)  earthquake damage. 
B)  liability. 
C)  flood damage. 
D)  additional personal property floaters.

Question 13

The bodily injury liability coverage of your automobile policy will not pay for

Accepted Answer

A)  medical expenses of those in the other car for an accident that you caused. 
B)  lost wages of those in the other car for an accident that you caused. 
C)  injuries to others in your car due to an accident that you caused. 
D)  pain and suffering awards to those in the other car for an accident that you caused. 
A)  medical expenses of those in the other car for an accident that you caused. 
B)  lost wages of those in the other car for an accident that you caused. 
C)  injuries to others in your car due to an accident that you caused. 
D)  pain and suffering awards to those in the other car for an accident that you caused.

Question 14

Renter's insurance covers your possessions and the structure of the house or condo you are renting.

Accepted Answer

A) True 
 B)False

Question 15

Younger drivers,especially males,between the ages of 16 and 25 are more likely to get in accidents and therefore pay higher insurance premiums.

Accepted Answer

A) True 
 B)False

Question 16

In general,which coverage provides higher total dollar coverage?

Accepted Answer

A)  Medical payments up to $10,000 
B)  Collision coverage 
C)  Comprehensive coverage 
D)  Liability coverage of 100/300 
A)  Medical payments up to $10,000 
B)  Collision coverage 
C)  Comprehensive coverage 
D)  Liability coverage of 100/300

Question 17

An umbrella policy is designed to cover

Accepted Answer

A)  additional buildings on your property. 
B)  property when traveling away from home. 
C)  major personal liability suits. 
D)  flood damage. 
A)  additional buildings on your property. 
B)  property when traveling away from home. 
C)  major personal liability suits. 
D)  flood damage.

Question 18

The comprehensive and collision premium of a Rolls-Royce in relationship to a Chevy

Accepted Answer

A)  will be higher because a Rolls-Royce costs more than a Chevy. 
B)  will be lower because Rolls-Royce drivers will be more careful. 
C)  depends on the insurance rate structure of the state in which the car is insured. 
D)  is a poor investment. 
A)  will be higher because a Rolls-Royce costs more than a Chevy. 
B)  will be lower because Rolls-Royce drivers will be more careful. 
C)  depends on the insurance rate structure of the state in which the car is insured. 
D)  is a poor investment.

Question 19

Which of the following is considered personal property for home insurance coverage?

Accepted Answer

A)  An automobile 
B)  A garage 
C)  Furniture 
D)  Trees and shrubs 
A)  An automobile 
B)  A garage 
C)  Furniture 
D)  Trees and shrubs

Question 20

The coverage that is designed to protect you if you cause an accident where the driver or passenger of the other car sustains injuries and sues you is called ________.

Accepted Answer

bodily inj

Exam 11: Auto and Homeowners Insurance

If your neighbor falls down the steps in your home and sues,you could be held responsible for her injuries.

Having liability coverage as part of auto and homeowner's policies helps protect your ________ in the event of an accident.

The primary function of insurance is to

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

In the context of insurance,the term liability is used to mean that you may be required to pay other individuals for damages that you caused to them or their property.

Use the following two columns of items to answer the matching questions below: -financial responsibility laws

Which of the following is the only required coverage if you do not have a lien on your car?

If you have a car accident in which a person in the other car is injured,the type of insurance that would protect you from financial loss is

Homeowner's insurance provides insurance in the event of property damage or personal liability relating to home ownership,but not theft.

The 25 in 50/100/25 refers to ________ coverage.

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

Most home insurance policies provide coverage for

The bodily injury liability coverage of your automobile policy will not pay for

Renter's insurance covers your possessions and the structure of the house or condo you are renting.

Younger drivers,especially males,between the ages of 16 and 25 are more likely to get in accidents and therefore pay higher insurance premiums.

In general,which coverage provides higher total dollar coverage?

An umbrella policy is designed to cover

The comprehensive and collision premium of a Rolls-Royce in relationship to a Chevy

Which of the following is considered personal property for home insurance coverage?

The coverage that is designed to protect you if you cause an accident where the driver or passenger of the other car sustains injuries and sues you is called ________.

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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