Question 1

Your car is damaged by fire while parked in your garage.Protection would be provided by

Accepted Answer

A)  comprehensive auto coverage. 
B)  property damage liability coverage. 
C)  homeowner's personal property coverage. 
D)  homeowner's dwelling unit coverage. 
E)  auto collision coverage. 
A)  comprehensive auto coverage. 
B)  property damage liability coverage. 
C)  homeowner's personal property coverage. 
D)  homeowner's dwelling unit coverage. 
E)  auto collision coverage.

Question 2

The principle of ____ states that an insured should not be compensated by an insurance company in an amount exceeding the economic loss.

Accepted Answer

A)  subrogation 
B)  insurable interest 
C)  coinsurance 
D)  indemnity 
E)  none of these 
A)  subrogation 
B)  insurable interest 
C)  coinsurance 
D)  indemnity 
E)  none of these

Question 3

Connie rented a hotel room while on vacation.If someone breaks into her room,her HO-4 policy will cover her stolen property.

Accepted Answer

A) True 
 B)False

Question 4

Auto insurance premiums are generally reduced by

Accepted Answer

A)  choosing a higher deductible. 
B)  buying a sporty "high powered" car. 
C)  moving to a larger city. 
D)  avoiding carpooling to work. 
E)  all of the above 
A)  choosing a higher deductible. 
B)  buying a sporty "high powered" car. 
C)  moving to a larger city. 
D)  avoiding carpooling to work. 
E)  all of the above

Question 5

Jake drove Amanda's truck to the football bowl game because his car was broken.On the way home,Jake was involved in an accident that was his fault.The resulting liability damages totaled $85,000.Jake has $100,000 liability coverage on his car,and Amanda has $50,000 on her truck.How would the $85,000 liability damages be paid for this accident?

Accepted Answer

A)  $50,000 from Amanda's policy with no further payment 
B)  $85,000 from Jake's policy 
C)  $50,000 from Amanda's policy plus $35,000 from Jake's policy 
D)  $50,000 from Amanda's policy plus $35,000 out of Jake's pocket 
E)  $50,000 from Amanda's policy plus $35,000 out of Amanda's pocket. 
A)  $50,000 from Amanda's policy with no further payment 
B)  $85,000 from Jake's policy 
C)  $50,000 from Amanda's policy plus $35,000 from Jake's policy 
D)  $50,000 from Amanda's policy plus $35,000 out of Jake's pocket 
E)  $50,000 from Amanda's policy plus $35,000 out of Amanda's pocket.

Question 6

One should never admit fault at the scene of an accident.

Accepted Answer

A) True 
 B)False

Question 7

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-The factor that is likely to have the greatest effect on your automobile insurance is your [driving record | address].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 8

An HO-1 policy lists more perils for which you are insured than an HO-3 does.

Accepted Answer

A) True 
 B)False

Question 9

Your son left his skateboard at the bottom of the basement stairs.While going downstairs to change a broken light bulb,you step on the skateboard and break your ankle during the fall.Medical damages total $1,455.How much will your $140,000 homeowners' insurance policy pay for this accident? The policy has $100,000 comprehensive liability coverage and medical payments of $1,000/person.

Accepted Answer

A)  $ 0 
B)  $ 250 
C)  $ 500 
D)  $1,000 
E)  $1,455 
A)  $ 0 
B)  $ 250 
C)  $ 500 
D)  $1,000 
E)  $1,455

Question 10

Internal limits are normally specified in the homeowners' insurance contract for some categories of personal property.

Accepted Answer

A) True 
 B)False

Question 11

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-During your lifetime,you are more likely to be sued for negligence as a result of owning a [car | home].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 12

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-Uninsured motorist insurance is quite [expensive | inexpensive].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 13

Liability coverage provides payment to the

Accepted Answer

A)  insured for damage. 
B)  family members of insured. 
C)  holder of auto loan. 
D)  lawyer needed to defend criminal offense. 
E)  non-family members involved in the accident. 
A)  insured for damage. 
B)  family members of insured. 
C)  holder of auto loan. 
D)  lawyer needed to defend criminal offense. 
E)  non-family members involved in the accident.

Question 14

Earthquakes are covered under most homeowners policies.

Accepted Answer

A) True 
 B)False

Question 15

Jamil and Vicky purchased a $200,000 homeowners policy for their house in 1988.They have renewed the policy each year since and have replacement coverage.This policy has a $1,000 deductible.Their home now has a replacement value of $275,000.Last week they came home to find a small fire which caused the following damages:   How much will the insurance company pay for the $50,000 loss to their home?

Accepted Answer

A)  $ 50,000 less the deductible 
B)  $ 45,000 less the deductible 
C)  $ 50,700 less the deductible 
D)  $200,000 less the deductible 
E)  none of the above 
A)  $ 50,000 less the deductible 
B)  $ 45,000 less the deductible 
C)  $ 50,700 less the deductible 
D)  $200,000 less the deductible 
E)  none of the above

Question 16

Donna,who is single and 30-years-old,has received several speeding tickets recently and was shocked by the effect on her auto insurance.Donna drives a 2002 Pontiac Firebird,is currently not covered by health insurance,has an emergency fund of $25,000,an income of $100,000 per year,and an investment portfolio of $230,000.She is trying to reduce the price of her auto insurance.Which of the following actions is most likely to be advisable.

Accepted Answer

A)  lower her liability limits to the minimum allowed in her state 
B)  drop her medical payments coverage 
C)  raise her deductible from $250 to $1,000 
D)  drop her comprehensive coverage and keep collision-only 
E)  drop everything from her policy except the liability insurance 
A)  lower her liability limits to the minimum allowed in her state 
B)  drop her medical payments coverage 
C)  raise her deductible from $250 to $1,000 
D)  drop her comprehensive coverage and keep collision-only 
E)  drop everything from her policy except the liability insurance

Your car is damaged by fire while parked in your garage.Protection would be provided by

The principle of ____ states that an insured should not be compensated by an insurance company in an amount exceeding the economic loss.

Connie rented a hotel room while on vacation.If someone breaks into her room,her HO-4 policy will cover her stolen property.

Auto insurance premiums are generally reduced by

One should never admit fault at the scene of an accident.

An HO-1 policy lists more perils for which you are insured than an HO-3 does.

Internal limits are normally specified in the homeowners' insurance contract for some categories of personal property.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Uninsured motorist insurance is quite [expensive | inexpensive].

Liability coverage provides payment to the

Earthquakes are covered under most homeowners policies.

Understanding the Financial Planning Process

Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

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Exam 10: Protecting Your Property

Your car is damaged by fire while parked in your garage.Protection would be provided by

The principle of ____ states that an insured should not be compensated by an insurance company in an amount exceeding the economic loss.

Connie rented a hotel room while on vacation.If someone breaks into her room,her HO-4 policy will cover her stolen property.

Auto insurance premiums are generally reduced by

One should never admit fault at the scene of an accident.

An HO-1 policy lists more perils for which you are insured than an HO-3 does.

Internal limits are normally specified in the homeowners' insurance contract for some categories of personal property.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Uninsured motorist insurance is quite [expensive | inexpensive].

Liability coverage provides payment to the

Earthquakes are covered under most homeowners policies.

Understanding the Financial Planning Process

Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters