Question 1

Section II of the homeowner's insurance contract covers

Accepted Answer

A)  libel. 
B)  contractual wrongdoing. 
C)  the house and contents. 
D)  liability of the insured. 
E)  none of these. 
A)  libel. 
B)  contractual wrongdoing. 
C)  the house and contents. 
D)  liability of the insured. 
E)  none of these.

Question 2

The Principle of Indemnity does NOT apply to life and health insurance.

Accepted Answer

A) True 
 B)False

Question 3

The type of car you drive has little effect on your auto insurance premiums.

Accepted Answer

A) True 
 B)False

Question 4

Negligence results when a person

Accepted Answer

A)  is not insured. 
B)  acts as a "reasonable person." 
C)  fails to act as a "reasonable person." 
D)  admits it. 
E)  is more than 18 years old. 
A)  is not insured. 
B)  acts as a "reasonable person." 
C)  fails to act as a "reasonable person." 
D)  admits it. 
E)  is more than 18 years old.

Question 5

You could save money on your car insurance premiums by

Accepted Answer

A)  buying a 4-door sedan. 
B)  choosing a $1,000 deductible. 
C)  moving to a small town. 
D)  all of these. 
E)  none of these would make any difference. 
A)  buying a 4-door sedan. 
B)  choosing a $1,000 deductible. 
C)  moving to a small town. 
D)  all of these. 
E)  none of these would make any difference.

Question 6

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.
-Your $10,000 stamp collection would be best protected under [your HO policy | a personal property floater].

Accepted Answer

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

Question 7

A house with a replacement value of $110,000 is currently insured for $90,000.The house has suffered a $15,000 loss from windstorm damage.The insurance company will pay the full $15,000 less the deductible.

Accepted Answer

A) True 
 B)False

Question 8

Who is covered under medical payment coverage of your automobile policy?

Accepted Answer

A)  Your daughter's friends riding in your car. 
B)  The driver of the car you hit. 
C)  The pedestrian you hit while crossing the street.. 
D)  a and c 
E)  all of the above 
A)  Your daughter's friends riding in your car. 
B)  The driver of the car you hit. 
C)  The pedestrian you hit while crossing the street.. 
D)  a and c 
E)  all of the above

Question 9

Auto insurance premiums will be highest for

Accepted Answer

A)  John,24 years old,no accidents,5 parking tickets. 
B)  Amanda,35 years old,no accidents or tickets. 
C)  Alex,30 years old,one minor accident in last five years. 
D)  Cindy,18 years old,clean driving record,in college away from home. 
E)  Oliver,23 years old,one accident,2 speeding tickets. 
A)  John,24 years old,no accidents,5 parking tickets. 
B)  Amanda,35 years old,no accidents or tickets. 
C)  Alex,30 years old,one minor accident in last five years. 
D)  Cindy,18 years old,clean driving record,in college away from home. 
E)  Oliver,23 years old,one accident,2 speeding tickets.

Question 10

A captive agent represents many insurance companies.

Accepted Answer

A) True 
 B)False

Question 11

Section I of the homeowner's insurance policy covers

Accepted Answer

A)  the home only. 
B)  the house and the garage. 
C)  negligence of an insured. 
D)  the home and its contents. 
E)  negligence and the house. 
A)  the home only. 
B)  the house and the garage. 
C)  negligence of an insured. 
D)  the home and its contents. 
E)  negligence and the house.

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.
-The type of car you drive will have [no | a large] effect on the premiums you pay.

Accepted Answer

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

Question 13

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.
-You will almost [never | always] need the services of a public claims adjustor to settle your claim with an insurance company.

Accepted Answer

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

Question 14

The right of ____ gives the insurer the right to recover its costs from the at-fault party after the company has paid a claim to its insured.

Accepted Answer

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

Question 15

Coinsurance is a policy provision to discourage the policyholder from being

Accepted Answer

A)  over insured. 
B)  underinsured. 
C)  insured only if specified by lending agency. 
D)  insured with more than one company. 
E)  insured by government agencies. 
A)  over insured. 
B)  underinsured. 
C)  insured only if specified by lending agency. 
D)  insured with more than one company. 
E)  insured by government agencies.

Question 16

Actual cash value is defined as replacement cost minus depreciation.

Accepted Answer

A) True 
 B)False

Question 17

Homeowners' insurance premiums are determined by

Accepted Answer

A)  policy limits. 
B)  perils covered. 
C)  deductibles chosen. 
D)  all of these. 
E)  none of these. 
A)  policy limits. 
B)  perils covered. 
C)  deductibles chosen. 
D)  all of these. 
E)  none of these.

Question 18

Property inventories are important to identify insurance needs and to substantiate claims.

Accepted Answer

A) True 
 B)False

Question 19

You will insure your house for $90,000.The premium on an HO-3 policy will be greater than that of an HO-2 policy.

Accepted Answer

A) True 
 B)False

Question 20

More HO-1 policies are sold each year than the HO-2 and HO-3 policies combined.

Accepted Answer

A) True 
 B)False

Section II of the homeowner's insurance contract covers

The Principle of Indemnity does NOT apply to life and health insurance.

The type of car you drive has little effect on your auto insurance premiums.

Negligence results when a person

You could save money on your car insurance premiums by

A house with a replacement value of $110,000 is currently insured for $90,000.The house has suffered a $15,000 loss from windstorm damage.The insurance company will pay the full $15,000 less the deductible.

Who is covered under medical payment coverage of your automobile policy?

Auto insurance premiums will be highest for

A captive agent represents many insurance companies.

Section I of the homeowner's insurance policy covers

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 type of car you drive will have [no | a large] effect on the premiums you pay.

The right of ____ gives the insurer the right to recover its costs from the at-fault party after the company has paid a claim to its insured.

Coinsurance is a policy provision to discourage the policyholder from being

Actual cash value is defined as replacement cost minus depreciation.

Homeowners' insurance premiums are determined by

Property inventories are important to identify insurance needs and to substantiate claims.

You will insure your house for $90,000.The premium on an HO-3 policy will be greater than that of an HO-2 policy.

More HO-1 policies are sold each year than the HO-2 and HO-3 policies combined.

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

Section II of the homeowner's insurance contract covers

The Principle of Indemnity does NOT apply to life and health insurance.

The type of car you drive has little effect on your auto insurance premiums.

Negligence results when a person

You could save money on your car insurance premiums by

A house with a replacement value of $110,000 is currently insured for $90,000.The house has suffered a $15,000 loss from windstorm damage.The insurance company will pay the full $15,000 less the deductible.

Who is covered under medical payment coverage of your automobile policy?

Auto insurance premiums will be highest for

A captive agent represents many insurance companies.

Section I of the homeowner's insurance policy covers

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 type of car you drive will have [no | a large] effect on the premiums you pay.

The right of ____ gives the insurer the right to recover its costs from the at-fault party after the company has paid a claim to its insured.

Coinsurance is a policy provision to discourage the policyholder from being

Actual cash value is defined as replacement cost minus depreciation.

Homeowners' insurance premiums are determined by

Property inventories are important to identify insurance needs and to substantiate claims.

You will insure your house for $90,000.The premium on an HO-3 policy will be greater than that of an HO-2 policy.

More HO-1 policies are sold each year than the HO-2 and HO-3 policies combined.

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