Question 1

Describe each of the six HO packaged policies. Which one is the most common?

Accepted Answer

HO-1 is the basic form.It provides very

Question 2

Outline the considerations for choosing the amount of homeowner's insurance you need.

Accepted Answer

Purchase enough homeowner's insurance to

Question 3

On your automobile insurance policy, medical expense coverage doesn't have per person limits.

Accepted Answer

A) True 
 B)False

Question 4

Describe the difference between actual cash value and replacement value.

Accepted Answer

Homeowner's insurance is set up to pay t

Question 5

What determines the cost of your homeowner's insurance?

Accepted Answer

A)  the location of your home 
B)  the type of structure 
C)  the level of coverage and policy type 
D)  All of the above 
A)  the location of your home 
B)  the type of structure 
C)  the level of coverage and policy type 
D)  All of the above

Question 6

The personal automobile policy (PAP) provides broad coverage, but there are a number of standard exceptions. Give five of them here.

Accepted Answer

You are not covered when:
-intentional i

Question 7

What factors are considered when insurance companies decide what rates to charge you for homeowner's insurance?

Accepted Answer

A)  Whether you have an in-home sprinkler system. 
B)  What type of building materials were used in the house. 
C)  Your credit score. 
D)  All of the above are correct. 
E)  All but B are correct. 
A)  Whether you have an in-home sprinkler system. 
B)  What type of building materials were used in the house. 
C)  Your credit score. 
D)  All of the above are correct. 
E)  All but B are correct.

Question 8

Pretend you are an insurance agent. Explain the coinsurance and 80 percent rule to a client.

Accepted Answer

The coinsurance provision requires you t

Question 9

Which of the following could increase the cost of your auto insurance?

Accepted Answer

A)  driving a sportier car 
B)  driving more miles per year 
C)  decreasing the amount of your deductible 
D)  All of the above 
A)  driving a sportier car 
B)  driving more miles per year 
C)  decreasing the amount of your deductible 
D)  All of the above

Question 10

You have recently inherited a sum of money. You are purchasing an old Victorian home which was built in 1856. The type of insurance needed on the house would be

Accepted Answer

A)  HO-1. 
B)  HO-4. 
C)  HO-6. 
D)  HO-8 . 
A)  HO-1. 
B)  HO-4. 
C)  HO-6. 
D)  HO-8 .

Question 11

No-fault insurance only pays for your losses if you were not at fault in the accident.

Accepted Answer

A) True 
 B)False

Question 12

To effectively collect on a loss when filing a homeowner's claim, the first step should be

Accepted Answer

A)  to make temporary repairs to protect your property. 
B)  confirm the adjuster's estimate. 
C)  make a detailed list of everything lost or damaged. 
D)  maintain records of the insurance settlement process, especially expenses. 
E)  report your loss to your insurance agent, and the police if applicable. 
A)  to make temporary repairs to protect your property. 
B)  confirm the adjuster's estimate. 
C)  make a detailed list of everything lost or damaged. 
D)  maintain records of the insurance settlement process, especially expenses. 
E)  report your loss to your insurance agent, and the police if applicable.

Question 13

Suppose burglars trashed your apartment and stole your personal property. Your rent is $350 per month and you had to live in another apartment house for two months while the landlord had the apartment put back into livable condition. Under which section of an HO policy would you be covered and how much would you recover because of the move?

Accepted Answer

A)  Section I coverage C, $350 
B)  Section I coverage C, $700 
C)  Section I coverage D, $350 
D)  Section I coverage D, $700 
E)  Section II coverage, $350 
A)  Section I coverage C, $350 
B)  Section I coverage C, $700 
C)  Section I coverage D, $350 
D)  Section I coverage D, $700 
E)  Section II coverage, $350

Question 14

One way to lower the premiums you pay on your insurance is to have a higher deductible.

Accepted Answer

A) True 
 B)False

Question 15

Rosanne was in a car crash a few years ago that left her with hearing loss. She has decided to sue the owner of the other automobile for the medical costs of recovering her hearing. How many years, from the date of the crash, does she have to file a claim for the expenses?

Accepted Answer

A)  1 year 
B)  2 years 
C)  3 years 
D)  4 years 
E)  There is no time limit for filing for medical expenses. 
A)  1 year 
B)  2 years 
C)  3 years 
D)  4 years 
E)  There is no time limit for filing for medical expenses.

Question 16

The disadvantage of actual cash value coverage of personal property compared to replacement cost coverage is that it

Accepted Answer

A)  will reimburse you for replacement cost minus estimated depreciation. 
B)  will reimburse you for the cash value of a new item. 
C)  must be reported as a loss on your tax return. 
D)  does not have to be reported as a loss on your tax return. 
E)  none of the above 
A)  will reimburse you for replacement cost minus estimated depreciation. 
B)  will reimburse you for the cash value of a new item. 
C)  must be reported as a loss on your tax return. 
D)  does not have to be reported as a loss on your tax return. 
E)  none of the above

Question 17

Under standard PAP coverage, you're not covered when you are using a vehicle without the permission of its owner.

Accepted Answer

A) True 
 B)False

Question 18

While transporting your TV to the repair shop, someone stole it from your car. Your TV is covered under your homeowner's coverage.

Accepted Answer

A) True 
 B)False

Question 19

The purpose of a personal umbrella policy, as an addition to your homeowner's policy, is primarily to protect you from

Accepted Answer

A)  acts of God, such as falling objects, hail, etc. 
B)  flood damage. 
C)  lawsuits and judgments. 
D)  faulty construction of your home. 
E)  contested title to your property. 
A)  acts of God, such as falling objects, hail, etc. 
B)  flood damage. 
C)  lawsuits and judgments. 
D)  faulty construction of your home. 
E)  contested title to your property.

Question 20

With no-fault insurance you can still sue for "pain and suffering" but only if the other driver was at fault.

Accepted Answer

A) True 
 B)False

Describe each of the six HO packaged policies. Which one is the most common?

Outline the considerations for choosing the amount of homeowner's insurance you need.

On your automobile insurance policy, medical expense coverage doesn't have per person limits.

Describe the difference between actual cash value and replacement value.

What determines the cost of your homeowner's insurance?

The personal automobile policy (PAP) provides broad coverage, but there are a number of standard exceptions. Give five of them here.

What factors are considered when insurance companies decide what rates to charge you for homeowner's insurance?

Pretend you are an insurance agent. Explain the coinsurance and 80 percent rule to a client.

Which of the following could increase the cost of your auto insurance?

You have recently inherited a sum of money. You are purchasing an old Victorian home which was built in 1856. The type of insurance needed on the house would be

No-fault insurance only pays for your losses if you were not at fault in the accident.

To effectively collect on a loss when filing a homeowner's claim, the first step should be

One way to lower the premiums you pay on your insurance is to have a higher deductible.

Rosanne was in a car crash a few years ago that left her with hearing loss. She has decided to sue the owner of the other automobile for the medical costs of recovering her hearing. How many years, from the date of the crash, does she have to file a claim for the expenses?

The disadvantage of actual cash value coverage of personal property compared to replacement cost coverage is that it

Under standard PAP coverage, you're not covered when you are using a vehicle without the permission of its owner.

While transporting your TV to the repair shop, someone stole it from your car. Your TV is covered under your homeowner's coverage.

The purpose of a personal umbrella policy, as an addition to your homeowner's policy, is primarily to protect you from

With no-fault insurance you can still sue for "pain and suffering" but only if the other driver was at fault.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Using Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Investment Basics

Securities Markets

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

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Exam 10: Property and Liability Insurance

Describe each of the six HO packaged policies. Which one is the most common?

Outline the considerations for choosing the amount of homeowner's insurance you need.

On your automobile insurance policy, medical expense coverage doesn't have per person limits.

Describe the difference between actual cash value and replacement value.

What determines the cost of your homeowner's insurance?

The personal automobile policy (PAP) provides broad coverage, but there are a number of standard exceptions. Give five of them here.

What factors are considered when insurance companies decide what rates to charge you for homeowner's insurance?

Pretend you are an insurance agent. Explain the coinsurance and 80 percent rule to a client.

Which of the following could increase the cost of your auto insurance?

You have recently inherited a sum of money. You are purchasing an old Victorian home which was built in 1856. The type of insurance needed on the house would be

No-fault insurance only pays for your losses if you were not at fault in the accident.

To effectively collect on a loss when filing a homeowner's claim, the first step should be

One way to lower the premiums you pay on your insurance is to have a higher deductible.

Rosanne was in a car crash a few years ago that left her with hearing loss. She has decided to sue the owner of the other automobile for the medical costs of recovering her hearing. How many years, from the date of the crash, does she have to file a claim for the expenses?

The disadvantage of actual cash value coverage of personal property compared to replacement cost coverage is that it

Under standard PAP coverage, you're not covered when you are using a vehicle without the permission of its owner.

While transporting your TV to the repair shop, someone stole it from your car. Your TV is covered under your homeowner's coverage.

The purpose of a personal umbrella policy, as an addition to your homeowner's policy, is primarily to protect you from

With no-fault insurance you can still sue for "pain and suffering" but only if the other driver was at fault.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Using Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Investment Basics

Securities Markets

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters