Question 1

Your auto liability insurance shows policy limits of $100,000/$300,000.This means

Accepted Answer

A)  $100,000 would be paid to the people in your automobile and the $300,000 to passengers in the other car. 
B)  $100,000 is the limit per individual with $300,000 divided equally between the remaining passengers. 
C)  $100,000 limit per individual with a $300,000 limit per accident. 
D)  $100,000 limit per individual with $300,000 being paid to the driver of the other car. 
E)  none of the above. 
A)  $100,000 would be paid to the people in your automobile and the $300,000 to passengers in the other car. 
B)  $100,000 is the limit per individual with $300,000 divided equally between the remaining passengers. 
C)  $100,000 limit per individual with a $300,000 limit per accident. 
D)  $100,000 limit per individual with $300,000 being paid to the driver of the other car. 
E)  none of the above.

Question 2

An automobile covered under a policy with a $500 collision deductible is damaged in a collision with a fence.It could be repaired for $15,000,replacement cost is $25,000,and the depreciation and physical condition deduction is $5,000.How much will the insurance company pay?

Accepted Answer

A)  $24,500 
B)  $7,500 
C)  $15,000 
D)  $14,500 
E)  Some other amount 
A)  $24,500 
B)  $7,500 
C)  $15,000 
D)  $14,500 
E)  Some other amount

Question 3

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 4

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

Accepted Answer

A) True 
 B)False

Question 5

Some common liability risks include:

Accepted Answer

A)  driving a car 
B)  entertaining guests at home 
C)  being careless in performing professional duties 
D)  all of the above 
A)  driving a car 
B)  entertaining guests at home 
C)  being careless in performing professional duties 
D)  all of the above

Question 6

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.1779:1779
-Buying collision and comprehensive auto insurance from the dealer selling you the car is considered to be a [good | bad] idea.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 7

Which of the following losses is most likely to be covered under your auto liability insurance?

Accepted Answer

A)  a legal bill incurred by your insurer defending you from a claim related to an accident caused by your negligence. 
B)  a medical bill for your injuries related to an accident that you caused. 
C)  a medical bill for injuries to a passenger in your car arising from an accident in which you were not at fault. 
D)  an auto shop bill for repairs of a car you own due to an accident caused by your negligence. 
E)  an auto repair bill for repairs to the car of a driver who negligently caused an accident with you. 
A)  a legal bill incurred by your insurer defending you from a claim related to an accident caused by your negligence. 
B)  a medical bill for your injuries related to an accident that you caused. 
C)  a medical bill for injuries to a passenger in your car arising from an accident in which you were not at fault. 
D)  an auto shop bill for repairs of a car you own due to an accident caused by your negligence. 
E)  an auto repair bill for repairs to the car of a driver who negligently caused an accident with you.

Question 8

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.1779:1779
-If you are sued,the liability portion of your property insurance [must | has no obligation to] defend you.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 9

Generally,actual cash value is defined as

Accepted Answer

A)  replacement cost. 
B)  original purchase price. 
C)  market value. 
D)  purchase cost minus depreciation. 
E)  replacement cost minus depreciation. 
A)  replacement cost. 
B)  original purchase price. 
C)  market value. 
D)  purchase cost minus depreciation. 
E)  replacement cost minus depreciation.

Question 10

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.1779:1779
-You own your house.The amount of insurance coverage you will have on your furniture will be dependent upon [the replacement value of your house | the amount of insurance on your home].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 11

Age of home affects insurance premiums the most.

Accepted Answer

A) True 
 B)False

Question 12

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.1779:1779
-[Most | Few] tenants carry renters insurance.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 13

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.1779:1779
-Most HO policies [would | would not] contain a clause requiring you to carry insurance equal to a minimum percent of the replacement value of your home in order to be paid in full for small losses.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 14

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.1779:1779
-Umbrella liability insurance is more likely to be needed by [higher | lower] income persons.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 15

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.1779:1779
-If you hit a deer with your car,payment will come from your [collision | comprehensive] protection.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 16

A captive agent represents many insurance companies.

Accepted Answer

A) True 
 B)False

Question 17

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 18

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.1779:1779
-The insurance company [will | will not] provide liability coverage if your dog bites the neighbor.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 19

Liability claims may result from alleged negligent acts.

Accepted Answer

A) True 
 B)False

Question 20

Liability insurance generally provides some coverage for legal fees.

Accepted Answer

A) True 
 B)False

Your auto liability insurance shows policy limits of $100,000/$300,000.This means

An automobile covered under a policy with a $500 collision deductible is damaged in a collision with a fence.It could be repaired for $15,000,replacement cost is $25,000,and the depreciation and physical condition deduction is $5,000.How much will the insurance company pay?

Auto insurance premiums are generally reduced by

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

Some common liability risks include:

Which of the following losses is most likely to be covered under your auto liability insurance?

Generally,actual cash value is defined as

Age of home affects insurance premiums the most.

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.1779:1779 -[Most | Few] tenants carry renters insurance.

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.1779:1779 -Umbrella liability insurance is more likely to be needed by [higher | lower] income persons.

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.1779:1779 -If you hit a deer with your car,payment will come from your [collision | comprehensive] protection.

A captive agent represents many insurance companies.

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.1779:1779 -The insurance company [will | will not] provide liability coverage if your dog bites the neighbor.

Liability claims may result from alleged negligent acts.

Liability insurance generally provides some coverage for legal fees.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

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 auto liability insurance shows policy limits of $100,000/$300,000.This means

An automobile covered under a policy with a $500 collision deductible is damaged in a collision with a fence.It could be repaired for $15,000,replacement cost is $25,000,and the depreciation and physical condition deduction is $5,000.How much will the insurance company pay?

Auto insurance premiums are generally reduced by

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

Some common liability risks include:

Which of the following losses is most likely to be covered under your auto liability insurance?

Generally,actual cash value is defined as

Age of home affects insurance premiums the most.

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.1779:1779 -[Most | Few] tenants carry renters insurance.

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.1779:1779 -Umbrella liability insurance is more likely to be needed by [higher | lower] income persons.

A captive agent represents many insurance companies.

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.1779:1779 -The insurance company [will | will not] provide liability coverage if your dog bites the neighbor.

Liability claims may result from alleged negligent acts.

Liability insurance generally provides some coverage for legal fees.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

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