Question 1

Negligence occurs when someone:

Accepted Answer

A) is not insured. 
B) fails to act as an insured. 
C) fails to act in a reasonable manner. 
D) admits an error. 
E) is more than 18 years of age. 
A) is not insured. 
B) fails to act as an insured. 
C) fails to act in a reasonable manner. 
D) admits an error. 
E) is more than 18 years of age. C

Question 2

Section II of a homeowner's insurance contract covers:

Accepted Answer

A) hospitalization costs for the insured. 
B) damages caused by a covered peril. 
C) living expenses while an insured's house is repaired. 
D) paying successfully pursued liability claims against an insured. 
E) damages caused by people renting the property. 
A) hospitalization costs for the insured. 
B) damages caused by a covered peril. 
C) living expenses while an insured's house is repaired. 
D) paying successfully pursued liability claims against an insured. 
E) damages caused by people renting the property. D

Question 3

The premiums for homeowner's insurance policies are affected by the type of structure and its location.

Accepted Answer

A) True 
 B)False  True

Question 4

Section I of a homeowner's insurance policy covers:

Accepted Answer

A) the cost of defending the insured. 
B) the reasonable expenses incurred by an insured in helping the insurance company's defense. 
C) hospitalization costs provided to the insured. 
D) the dwelling, accompanying structures, and personal property of the insured. 
E) the liability for negligence of the insured. 
A) the cost of defending the insured. 
B) the reasonable expenses incurred by an insured in helping the insurance company's defense. 
C) hospitalization costs provided to the insured. 
D) the dwelling, accompanying structures, and personal property of the insured. 
E) the liability for negligence of the insured.

Question 5

The principle of indemnity will prevent:

Accepted Answer

A) the act of one person from being assigned to another. 
B) an insured from collecting more than what he or she has lost. 
C) a negligent third party from being held liable for damages if the injured party is insured. 
D) a significant amount of loss control activity. 
E) an insurer from ever waiving its right to subrogation. 
A) the act of one person from being assigned to another. 
B) an insured from collecting more than what he or she has lost. 
C) a negligent third party from being held liable for damages if the injured party is insured. 
D) a significant amount of loss control activity. 
E) an insurer from ever waiving its right to subrogation.

Question 6

The personal property floater:

Accepted Answer

A) provides either blanket or scheduled coverage of items that are not covered adequately in a standard homeowner's policy. 
B) is available to meet the needs of "innocent" victims of accidents who are negligently injured by uninsured, underinsured, or hit-and-run motorists. 
C) is a specialized inland marine policy covering boats and trailers used with boats. 
D) covers against liability caused by the ownership or use of items of personal property. 
E) is an additional amount of insurance equal to a specified percentage of the replacement value of the property. 
A) provides either blanket or scheduled coverage of items that are not covered adequately in a standard homeowner's policy. 
B) is available to meet the needs of "innocent" victims of accidents who are negligently injured by uninsured, underinsured, or hit-and-run motorists. 
C) is a specialized inland marine policy covering boats and trailers used with boats. 
D) covers against liability caused by the ownership or use of items of personal property. 
E) is an additional amount of insurance equal to a specified percentage of the replacement value of the property.

Question 7

A captive agent typically represents two to ten different insurance companies.

Accepted Answer

A) True 
 B)False

Question 8

A personal liability umbrella policy is more likely to be opted for by people:

Accepted Answer

A) who cannot afford a basic health policy. 
B) who cannot afford basic homeowner's and automobile insurance. 
C) with a moderate to high level of income and net worth. 
D) with a low level of income and net worth. 
E) who have recently retired or experienced a drop in income. 
A) who cannot afford a basic health policy. 
B) who cannot afford basic homeowner's and automobile insurance. 
C) with a moderate to high level of income and net worth. 
D) with a low level of income and net worth. 
E) who have recently retired or experienced a drop in income.

Question 9

Which of the following statements regarding companies that sell insurance directly to consumers is true?

Accepted Answer

A) Their insurance agents review the loss claims and file a lawsuit against the negligent party. 
B) They hire only Certified Insurance Counselors as their captive agents. 
C) Their premiums are generally lower than for companies that sell insurance through agents. 
D) They reimburse a higher amount of insurance claims than the companies that sell insurance through agents. 
E) Their deductibles are lower than the companies that sell insurance through agents. 
A) Their insurance agents review the loss claims and file a lawsuit against the negligent party. 
B) They hire only Certified Insurance Counselors as their captive agents. 
C) Their premiums are generally lower than for companies that sell insurance through agents. 
D) They reimburse a higher amount of insurance claims than the companies that sell insurance through agents. 
E) Their deductibles are lower than the companies that sell insurance through agents.

Question 10

A house with a replacement value of $110,000 is currently insured for $90,000. The house is damaged in a windstorm, causing a loss of $15,000. The insurance company will pay an amount equal to $15,000 less the deductible.

Accepted Answer

A) True 
 B)False

Question 11

A personal liability umbrella policy typically includes:

Accepted Answer

A) subsidies for flood insurance established in cooperation with a private insurance agent. 
B) added liability coverage for homeowner's and automobile insurance. 
C) coverage for only other types of vehicles such as mobile homes. 
D) the basic health and homeowner's protection needed by most families. 
E) the provision for assessment of liability by the police at the scene of the accident. 
A) subsidies for flood insurance established in cooperation with a private insurance agent. 
B) added liability coverage for homeowner's and automobile insurance. 
C) coverage for only other types of vehicles such as mobile homes. 
D) the basic health and homeowner's protection needed by most families. 
E) the provision for assessment of liability by the police at the scene of the accident.

Question 12

A(n)_____  agent represents multiple insurance companies.

Accepted Answer

A) captive 
B) business 
C) casualty 
D) independent 
E) dealer's 
A) captive 
B) business 
C) casualty 
D) independent 
E) dealer's

Question 13

An increase in the amount of the deductible will:

Accepted Answer

A) increase the insurance coverage. 
B) decrease the replacement cost of the insured property. 
C) decrease the amount of insurance premiums. 
D) increase the personal property floater coverage for the insured property. 
E) decrease the value of the property. 
A) increase the insurance coverage. 
B) decrease the replacement cost of the insured property. 
C) decrease the amount of insurance premiums. 
D) increase the personal property floater coverage for the insured property. 
E) decrease the value of the property.

Question 14

Which of the following homeowner's policies is best suited to a renter of an apartment?

Accepted Answer

A) HO-1 
B) HO-2 
C) HO-3 
D) HO-4 
E) HO-8 
A) HO-1 
B) HO-2 
C) HO-3 
D) HO-4 
E) HO-8

Question 15

When insuring property, people need to consider not only replacing and restoring the actual property in the event of a loss, but also the:

Accepted Answer

A) liability arising from the insured's responsibility for property loss. 
B) construction cost of the property. 
C) home equity in the property. 
D) excess compensation claim for loss to the property. 
E) time used to construct objects. 
A) liability arising from the insured's responsibility for property loss. 
B) construction cost of the property. 
C) home equity in the property. 
D) excess compensation claim for loss to the property. 
E) time used to construct objects.

Question 16

The federal government has introduced a subsidized flood insurance program for homeowners and tenants living in designated communities.

Accepted Answer

A) True 
 B)False

Question 17

Insurance policies provide the opportunity for claims arbitration to settle any disputed liability claims.

Accepted Answer

A) True 
 B)False

Question 18

The first step in buying property and liability insurance is to develop a(n):

Accepted Answer

A) list of insurance agents offering insurance. 
B) inventory of exposures to loss. 
C) statement of premiums of five different insurance companies. 
D) list of floater policies. 
E) replacement cost for your property. 
A) list of insurance agents offering insurance. 
B) inventory of exposures to loss. 
C) statement of premiums of five different insurance companies. 
D) list of floater policies. 
E) replacement cost for your property.

Question 19

Suppose you carelessly, but unintentionally, knocked someone down a flight of stairs in your home. You would be covered by your homeowner's insurance.

Accepted Answer

A) True 
 B)False

Question 20

A higher home insurance cost may result from:

Accepted Answer

A) a low crime rate in the area of the insured's residence. 
B) a low credit score of the insured. 
C) fewer insurance claims from the area of the insured's residence. 
D) the lack of a swimming pool at the insured's residence. 
E) fewer captive insurance agents hired by the insurance company. 
A) a low crime rate in the area of the insured's residence. 
B) a low credit score of the insured. 
C) fewer insurance claims from the area of the insured's residence. 
D) the lack of a swimming pool at the insured's residence. 
E) fewer captive insurance agents hired by the insurance company.

Negligence occurs when someone:

Section II of a homeowner's insurance contract covers:

The premiums for homeowner's insurance policies are affected by the type of structure and its location.

Section I of a homeowner's insurance policy covers:

The principle of indemnity will prevent:

The personal property floater:

A captive agent typically represents two to ten different insurance companies.

A personal liability umbrella policy is more likely to be opted for by people:

Which of the following statements regarding companies that sell insurance directly to consumers is true?

A house with a replacement value of $110,000 is currently insured for $90,000. The house is damaged in a windstorm, causing a loss of $15,000. The insurance company will pay an amount equal to $15,000 less the deductible.

A personal liability umbrella policy typically includes:

A(n)_____ agent represents multiple insurance companies.

An increase in the amount of the deductible will:

Which of the following homeowner's policies is best suited to a renter of an apartment?

When insuring property, people need to consider not only replacing and restoring the actual property in the event of a loss, but also the:

The federal government has introduced a subsidized flood insurance program for homeowners and tenants living in designated communities.

Insurance policies provide the opportunity for claims arbitration to settle any disputed liability claims.

The first step in buying property and liability insurance is to develop a(n):

Suppose you carelessly, but unintentionally, knocked someone down a flight of stairs in your home. You would be covered by your homeowner's insurance.

A higher home insurance cost may result from:

Understanding the Financial 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, Etfs, and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 10: Protecting Your Property

Negligence occurs when someone:

Section II of a homeowner's insurance contract covers:

The premiums for homeowner's insurance policies are affected by the type of structure and its location.

Section I of a homeowner's insurance policy covers:

The principle of indemnity will prevent:

The personal property floater:

A captive agent typically represents two to ten different insurance companies.

A personal liability umbrella policy is more likely to be opted for by people:

Which of the following statements regarding companies that sell insurance directly to consumers is true?

A house with a replacement value of $110,000 is currently insured for $90,000. The house is damaged in a windstorm, causing a loss of $15,000. The insurance company will pay an amount equal to $15,000 less the deductible.

A personal liability umbrella policy typically includes:

A(n)_____ agent represents multiple insurance companies.

An increase in the amount of the deductible will:

Which of the following homeowner's policies is best suited to a renter of an apartment?

When insuring property, people need to consider not only replacing and restoring the actual property in the event of a loss, but also the:

The federal government has introduced a subsidized flood insurance program for homeowners and tenants living in designated communities.

Insurance policies provide the opportunity for claims arbitration to settle any disputed liability claims.

The first step in buying property and liability insurance is to develop a(n):

Suppose you carelessly, but unintentionally, knocked someone down a flight of stairs in your home. You would be covered by your homeowner's insurance.

A higher home insurance cost may result from:

Understanding the Financial 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, Etfs, and Real Estate

Planning for Retirement

Preserving Your Estate

Filters