Question 1

Which of the following statements regarding medical payments coverage in a personal automobile policy (PAP) is true?

Accepted Answer

A)  Medical payments coverage insures a covered individual for medical expenses incurred within 5 years of an automobile accident in an amount not to exceed the policy limit. 
B)  A person must be occupying an automobile when the accidental injury occurs to be eligible for benefits. 
C)  Medical payments coverage provides for reimbursement even if other sources of recovery, such as health insurance or accident insurance, also makes payments. 
D)  In all states, medical payments are subject to subrogation, which means the insurer is entitled to recover any duplicate payments made to the insured. 
E)  Injuries sustained on a bicycle or motorcycle in a traffic accident are covered. 
A)  Medical payments coverage insures a covered individual for medical expenses incurred within 5 years of an automobile accident in an amount not to exceed the policy limit. 
B)  A person must be occupying an automobile when the accidental injury occurs to be eligible for benefits. 
C)  Medical payments coverage provides for reimbursement even if other sources of recovery, such as health insurance or accident insurance, also makes payments. 
D)  In all states, medical payments are subject to subrogation, which means the insurer is entitled to recover any duplicate payments made to the insured. 
E)  Injuries sustained on a bicycle or motorcycle in a traffic accident are covered.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements regarding factors that influence how auto insurance premiums are set is true?

Accepted Answer

A)  Insurance companies charge lower rates for rear-engine models. 
B)  Rates are lower if the insured automobile is driven less than 20 miles one way to work. 
C)  In most states, accidents determined to be the insured's fault incur points and a premium surcharge. 
D)  Discounts are often given for a vehicle that is driven less than 100,000 miles a year. 
E)  Because they are involved in a larger percentage of fatal crashes, unmarried females under age 30 pay higher premiums than do older individuals. 
A)  Insurance companies charge lower rates for rear-engine models. 
B)  Rates are lower if the insured automobile is driven less than 20 miles one way to work. 
C)  In most states, accidents determined to be the insured's fault incur points and a premium surcharge. 
D)  Discounts are often given for a vehicle that is driven less than 100,000 miles a year. 
E)  Because they are involved in a larger percentage of fatal crashes, unmarried females under age 30 pay higher premiums than do older individuals.

Question 4

INSTRUCTIONS: Choose the word or phrase in [ ] that 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. 
[ Comprehensive | Named peril ] policies cover all perils unless they are specifically excluded.

Accepted Answer

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

Question 5

INSTRUCTIONS: Choose the word or phrase in [ ] that 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. 
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 INSTRUCTIONS: Choose the word or phrase in...

Question 6

Which of the following homeowner's policies provides coverage for damage caused by electrical current?

Accepted Answer

A)  HO-7 
B)  HO-2 
C)  HO-8 
D)  HO-9 
E)  HO-1 
A)  HO-7 
B)  HO-2 
C)  HO-8 
D)  HO-9 
E)  HO-1

Question 7

The first step when 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 8

INSTRUCTIONS: Choose the word or phrase in [ ] that 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 relatively [ expensive | inexpensive ].

Accepted Answer

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

Question 9

A $100,000/$300,000 bodily injury liability automobile policy could pay up to $100,000 to one person or up to $300,000 to all injured victims in an accident.

Accepted Answer

A) True 
 B)False

Question 10

INSTRUCTIONS: Choose the word or phrase in [ ] that 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. 
Allstate and Nationwide are major insurance companies that market their products through [ captive | independent ] agents.

Accepted Answer

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

Question 11

To purchase a personal liability umbrella policy, the insured party must already have:

Accepted Answer

A)  federally subsidized flood insurance coverage. 
B)  relatively high liability limits on their homeowner's and auto coverage. 
C)  high levels of personal debt. 
D)  made several claims with the insurance company. 
E)  a poor driving record. 
A)  federally subsidized flood insurance coverage. 
B)  relatively high liability limits on their homeowner's and auto coverage. 
C)  high levels of personal debt. 
D)  made several claims with the insurance company. 
E)  a poor driving record.

Question 12

INSTRUCTIONS: Choose the word or phrase in [ ] that 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 professional designation you want your property insurance agent to have is the [ ACLU | CPCU ].

Accepted Answer

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

Question 13

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 14

Part A liability coverage under a personal automobile policy may be viewed as "following" the _____ first.

Accepted Answer

A)  insured 
B)  family members of the insured 
C)  holder of an auto loan 
D)  vehicle 
E)  insurer 
A)  insured 
B)  family members of the insured 
C)  holder of an auto loan 
D)  vehicle 
E)  insurer

Question 15

At the scene of an accident, the police are only responsible for assessing the:

Accepted Answer

A)  amount of loss. 
B)  amount of the claim. 
C)  liability of the insurance company. 
D)  probability of a law violation. 
E)  extent of any injuries. 
A)  amount of loss. 
B)  amount of the claim. 
C)  liability of the insurance company. 
D)  probability of a law violation. 
E)  extent of any injuries.

Which of the following statements regarding medical payments coverage in a personal automobile policy (PAP) is true?

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

Which of the following statements regarding factors that influence how auto insurance premiums are set is true?

INSTRUCTIONS: Choose the word or phrase in [ ] that 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. [ Comprehensive | Named peril ] policies cover all perils unless they are specifically excluded.

Which of the following homeowner's policies provides coverage for damage caused by electrical current?

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

INSTRUCTIONS: Choose the word or phrase in [ ] that 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 relatively [ expensive | inexpensive ].

A $100,000/$300,000 bodily injury liability automobile policy could pay up to $100,000 to one person or up to $300,000 to all injured victims in an accident.

To purchase a personal liability umbrella policy, the insured party must already have:

Section I of a homeowner's insurance policy covers:

Part A liability coverage under a personal automobile policy may be viewed as "following" the _____ first.

At the scene of an accident, the police are only responsible for assessing the:

Understanding the Financial Planning Process

Developing 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 and Real Estate

Planning for Retirement

Preserving Your Estate

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Exam 10: Protecting Your Property

Which of the following statements regarding medical payments coverage in a personal automobile policy (PAP) is true?

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

Which of the following statements regarding factors that influence how auto insurance premiums are set is true?

Which of the following homeowner's policies provides coverage for damage caused by electrical current?

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

INSTRUCTIONS: Choose the word or phrase in [ ] that 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 relatively [ expensive | inexpensive ].

A $100,000/$300,000 bodily injury liability automobile policy could pay up to $100,000 to one person or up to $300,000 to all injured victims in an accident.

To purchase a personal liability umbrella policy, the insured party must already have:

Section I of a homeowner's insurance policy covers:

Part A liability coverage under a personal automobile policy may be viewed as "following" the _____ first.

At the scene of an accident, the police are only responsible for assessing the:

Understanding the Financial Planning Process

Developing 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 and Real Estate

Planning for Retirement

Preserving Your Estate

Filters