Question 1

The coinsurance provision requires that the insurance company will pay a portion of your financial losses in the event of a catastrophe.

Accepted Answer

A) True 
 B)False

Question 2

Felix's $2,000 TV was stolen. He has no record of its purchase, however, he knows his insurance company will reimburse him the full value of the TV.

Accepted Answer

A) True 
 B)False

Question 3

Coverage A: Dwelling protects

Accepted Answer

A)  personal property in a dwelling. 
B)  unattached structures on the dwelling site. 
C)  your home. 
D)  any attachments to your home. 
E)  both C and D above 
A)  personal property in a dwelling. 
B)  unattached structures on the dwelling site. 
C)  your home. 
D)  any attachments to your home. 
E)  both C and D above

Question 4

You plan to purchase a personal automobile policy on your new car. You want to be able to understand the four basic parts, which are:

Accepted Answer

Part A:Liability coverage provides prote

Question 5

While you were walking your dog, she bit a child. Medical treatment for the child would fall under Coverage C: Personal Property

Accepted Answer

A) True 
 B)False

Question 6

Lisa and Eric want to keep the cost down on the homeowner's insurance they will need. After talking to their parents they developed a list of ways to do so. Identify the one mistake on it.

Accepted Answer

A)  Take as high a deductible as you can afford to self insure. 
B)  Install an adequate security system. 
C)  Pay your insurance premiums quarterly. 
D)  Install adequate smoke detectors. 
E)  Insure your cars with the homeowner's company. 
A)  Take as high a deductible as you can afford to self insure. 
B)  Install an adequate security system. 
C)  Pay your insurance premiums quarterly. 
D)  Install adequate smoke detectors. 
E)  Insure your cars with the homeowner's company.

Question 7

In the United States, the first type of homeowner's insurance was fire insurance,
offered in 1935 by a small company in Charleston, South Carolina.

Accepted Answer

A) True 
 B)False

Question 8

Uninsured motorists coverage

Accepted Answer

A)  can be purchased by uninsured drivers after an accident to retroactively cover their losses. 
B)  will not provide coverage if the other driver's insurance company is insolvent. 
C)  will cover injuries caused by a hit-and-run driver. 
D)  All of the above are true. 
A)  can be purchased by uninsured drivers after an accident to retroactively cover their losses. 
B)  will not provide coverage if the other driver's insurance company is insolvent. 
C)  will cover injuries caused by a hit-and-run driver. 
D)  All of the above are true.

Question 9

Eric and Lisa Lambert are purchasing a home for the first time. Their insurance company wants them to insure at least ________ of the home's full replacement cost.

Accepted Answer

A)  70% 
B)  75% 
C)  80% 
D)  85% 
E)  90% 
A)  70% 
B)  75% 
C)  80% 
D)  85% 
E)  90%

Question 10

________ would provide coverage for you against injuries caused by a negligent driver whose insurance company is insolvent.

Accepted Answer

A)  Collision coverage 
B)  Personal liability coverage 
C)  Negligent driver rider 
D)  Uninsured motorist's protection coverage 
E)  none of the above 
A)  Collision coverage 
B)  Personal liability coverage 
C)  Negligent driver rider 
D)  Uninsured motorist's protection coverage 
E)  none of the above

Question 11

Insurers in California are required to offer ________ coverage to consumers due to the substantial risk factors in that state.

Accepted Answer

A)  renters 
B)  liability 
C)  inflation 
D)  earthquake 
E)  bankruptcy 
A)  renters 
B)  liability 
C)  inflation 
D)  earthquake 
E)  bankruptcy

Question 12

Each automobile policy contains both liability and property damage coverage.

Accepted Answer

A) True 
 B)False

Question 13

Your backyard shed was damaged by a windstorm. Your coverage is based under Coverage D: Loss of Use.

Accepted Answer

A) True 
 B)False

Question 14

In general, which of the following is true regarding the amount of liability insurance you should carry?

Accepted Answer

A)  It should never be greater than your state's minimum 
B)  It should be inversely proportional to your net worth 
C)  The greater your assets, the more coverage you should carry 
D)  None of the above are correct 
A)  It should never be greater than your state's minimum 
B)  It should be inversely proportional to your net worth 
C)  The greater your assets, the more coverage you should carry 
D)  None of the above are correct

Question 15

Provide an explanation of Section II: Personal Liability Coverage.

Accepted Answer

This part of a homeowner's insurance pol

Question 16

Your laptop computer was stolen out of your car at school. It will be covered under your PAP.

Accepted Answer

A) True 
 B)False

Question 17

While you were visiting a friend, someone robbed their apartment and stole your laptop computer. Unfortunately, they did not have renter's insurance. Where can you look for help to replace your computer?

Accepted Answer

A)  The landlord's loss of use coverage. 
B)  Your homeowner's insurance policy. 
C)  Your friend through small claims court. 
D)  None of the above are correct. 
A)  The landlord's loss of use coverage. 
B)  Your homeowner's insurance policy. 
C)  Your friend through small claims court. 
D)  None of the above are correct.

Question 18

It is possible to have a different deductible for collision loss than you have for comprehensive physical damages.

Accepted Answer

A) True 
 B)False

Question 19

What characteristics will affect the cost of your car insurance?

Accepted Answer

A)  the type of automobile you drive 
B)  where you reside 
C)  how many miles you drive 
D)  all of the above 
E)  all but B are correct 
A)  the type of automobile you drive 
B)  where you reside 
C)  how many miles you drive 
D)  all of the above 
E)  all but B are correct

Question 20

Your best friend's apartment has just been robbed, and he had no insurance. What would you suggest to your friend to better protect himself from such losses in the future?

Accepted Answer

A)  Purchase renter's insurance and add a personal articles floater. 
B)  Take out personal property replacement cost coverage. 
C)  Take a written and video tape inventory of your property. 
D)  Only B and C above 
E)  A, B, and C above 
A)  Purchase renter's insurance and add a personal articles floater. 
B)  Take out personal property replacement cost coverage. 
C)  Take a written and video tape inventory of your property. 
D)  Only B and C above 
E)  A, B, and C above

The coinsurance provision requires that the insurance company will pay a portion of your financial losses in the event of a catastrophe.

Felix's $2,000 TV was stolen. He has no record of its purchase, however, he knows his insurance company will reimburse him the full value of the TV.

Coverage A: Dwelling protects

You plan to purchase a personal automobile policy on your new car. You want to be able to understand the four basic parts, which are:

While you were walking your dog, she bit a child. Medical treatment for the child would fall under Coverage C: Personal Property

Lisa and Eric want to keep the cost down on the homeowner's insurance they will need. After talking to their parents they developed a list of ways to do so. Identify the one mistake on it.

In the United States, the first type of homeowner's insurance was fire insurance, offered in 1935 by a small company in Charleston, South Carolina.

Uninsured motorists coverage

Eric and Lisa Lambert are purchasing a home for the first time. Their insurance company wants them to insure at least ________ of the home's full replacement cost.

________ would provide coverage for you against injuries caused by a negligent driver whose insurance company is insolvent.

Insurers in California are required to offer ________ coverage to consumers due to the substantial risk factors in that state.

Each automobile policy contains both liability and property damage coverage.

Your backyard shed was damaged by a windstorm. Your coverage is based under Coverage D: Loss of Use.

In general, which of the following is true regarding the amount of liability insurance you should carry?

Provide an explanation of Section II: Personal Liability Coverage.

Your laptop computer was stolen out of your car at school. It will be covered under your PAP.

While you were visiting a friend, someone robbed their apartment and stole your laptop computer. Unfortunately, they did not have renter's insurance. Where can you look for help to replace your computer?

It is possible to have a different deductible for collision loss than you have for comprehensive physical damages.

What characteristics will affect the cost of your car insurance?

Your best friend's apartment has just been robbed, and he had no insurance. What would you suggest to your friend to better protect himself from such losses in the future?

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

Exam 10: Property and Liability Insurance

The coinsurance provision requires that the insurance company will pay a portion of your financial losses in the event of a catastrophe.

Felix's $2,000 TV was stolen. He has no record of its purchase, however, he knows his insurance company will reimburse him the full value of the TV.

Coverage A: Dwelling protects

You plan to purchase a personal automobile policy on your new car. You want to be able to understand the four basic parts, which are:

While you were walking your dog, she bit a child. Medical treatment for the child would fall under Coverage C: Personal Property

Lisa and Eric want to keep the cost down on the homeowner's insurance they will need. After talking to their parents they developed a list of ways to do so. Identify the one mistake on it.

In the United States, the first type of homeowner's insurance was fire insurance, offered in 1935 by a small company in Charleston, South Carolina.

Uninsured motorists coverage

Eric and Lisa Lambert are purchasing a home for the first time. Their insurance company wants them to insure at least ________ of the home's full replacement cost.

________ would provide coverage for you against injuries caused by a negligent driver whose insurance company is insolvent.

Insurers in California are required to offer ________ coverage to consumers due to the substantial risk factors in that state.

Each automobile policy contains both liability and property damage coverage.

Your backyard shed was damaged by a windstorm. Your coverage is based under Coverage D: Loss of Use.

In general, which of the following is true regarding the amount of liability insurance you should carry?

Provide an explanation of Section II: Personal Liability Coverage.

Your laptop computer was stolen out of your car at school. It will be covered under your PAP.

While you were visiting a friend, someone robbed their apartment and stole your laptop computer. Unfortunately, they did not have renter's insurance. Where can you look for help to replace your computer?

It is possible to have a different deductible for collision loss than you have for comprehensive physical damages.

What characteristics will affect the cost of your car insurance?

Your best friend's apartment has just been robbed, and he had no insurance. What would you suggest to your friend to better protect himself from such losses in the future?

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