Question 1

John Meadow rents an apartment and wants tenant's insurance or an ________ policy.

Accepted Answer

A)  HO-1 
B)  HO-2 
C)  HO-3 
D)  HO-4 
E)  HO-6 
A)  HO-1 
B)  HO-2 
C)  HO-3 
D)  HO-4 
E)  HO-6

Question 2

You have the most popular house on the block for the neighborhood children to play at. You have a trampoline, tree fort and jungle gym. Your family also has two large German shepherd dogs. What should you consider given the described situation?

Accepted Answer

A)  Purchasing personal property replacement cost coverage. 
B)  Purchasing earthquake coverage. 
C)  Purchasing an umbrella policy. 
D)  None of the above. 
A)  Purchasing personal property replacement cost coverage. 
B)  Purchasing earthquake coverage. 
C)  Purchasing an umbrella policy. 
D)  None of the above.

Question 3

Suppose Lisa and Eric do not purchase an adequate amount of insurance on their home. In the event of a claim, they would pay a portion of it. This is the

Accepted Answer

A)  inflation guard. 
B)  added liability. 
C)  replacement cost. 
D)  coinsurance provision. 
E)  70 percent rule. 
A)  inflation guard. 
B)  added liability. 
C)  replacement cost. 
D)  coinsurance provision. 
E)  70 percent rule.

Question 4

Your insurance credit score depends on, among other things, your payment history and the types of credit used.

Accepted Answer

A) True 
 B)False

Question 5

In your many travels, you have suddenly found yourself in an auto accident - the very first one where you are at fault. Both cars are blocking a bridge with heavy city traffic. What should you do?

Accepted Answer

A)  Stay at the scene of the accident - have someone call the police and get medical help. 
B)  Move the cars to a safe place so no one else gets hit. 
C)  Call a lawyer to meet you at the scene of the accident. 
D)  Refrain from admitting guilt or signing anything. 
E)  all of the above except C 
A)  Stay at the scene of the accident - have someone call the police and get medical help. 
B)  Move the cars to a safe place so no one else gets hit. 
C)  Call a lawyer to meet you at the scene of the accident. 
D)  Refrain from admitting guilt or signing anything. 
E)  all of the above except C

Question 6

You had several of your son's friends over last night for a sleepover. While dropping off their child, one of the parents did not see your basketball hoop and smashed it beyond repair with her car. Where would you look for damage payment?

Accepted Answer

A)  the driver's homeowner's insurance 
B)  section II of the driver's homeowner's insurance 
C)  the driver's automobile liability coverage 
D)  the driver's automobile comprehensive insurance 
E)  the driver's automobile collision insurance 
A)  the driver's homeowner's insurance 
B)  section II of the driver's homeowner's insurance 
C)  the driver's automobile liability coverage 
D)  the driver's automobile comprehensive insurance 
E)  the driver's automobile collision insurance

Question 7

Which of the following are among the most common driver distractions that lead to insurance claims?

Accepted Answer

A)  talking on cell phones 
B)  applying make-up or shaving 
C)  reading something 
D)  eating something 
E)  all of the above are cited as the most common driver distractions 
A)  talking on cell phones 
B)  applying make-up or shaving 
C)  reading something 
D)  eating something 
E)  all of the above are cited as the most common driver distractions

Question 8

Your home is hit by a strong wind storm that causes serious damage to one end of it. The rest of your home is livable. What do you do?

Accepted Answer

Report your loss immediately.Next, make

Question 9

What type of auto insurance protects you in the case of accident regardless of who caused the accident?

Accepted Answer

A)  no-cause insurance 
B)  no-fault insurance 
C)  no-litigation insurance 
D)  cause-free insurance 
E)  none of the above 
A)  no-cause insurance 
B)  no-fault insurance 
C)  no-litigation insurance 
D)  cause-free insurance 
E)  none of the above

Question 10

Charlie drives his own vehicle as a taxi on weekends in his home town. With his PAP coverage, his automobile is covered since he is carrying passengers for a fee.

Accepted Answer

A) True 
 B)False

Question 11

Your written or video inventory of your assets should be kept in a safe place such as a lock box at your bank.

Accepted Answer

A) True 
 B)False

Question 12

For a minor traffic accident, it is not necessary to call the police if you plan on submitting a claim to your insurance company.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following are not discounts for PAP coverage?

Accepted Answer

A)  good student discount 
B)  anti-theft equipment discount 
C)  low miles per gallon discount 
D)  accident free discount 
E)  all of the above are discounts for PAP. 
A)  good student discount 
B)  anti-theft equipment discount 
C)  low miles per gallon discount 
D)  accident free discount 
E)  all of the above are discounts for PAP.

Question 14

Francis was just learning to drive. She forgot to put the car into park and it rolled down the driveway and into the neighbor's automobile. What part of her automobile insurance policy will cover the damage to her neighbor's automobile?

Accepted Answer

A)  Part A: liability coverage 
B)  Part B: medical expense coverage 
C)  Part C: uninsured motorists coverage 
D)  Part D: damage to your automobile coverage 
A)  Part A: liability coverage 
B)  Part B: medical expense coverage 
C)  Part C: uninsured motorists coverage 
D)  Part D: damage to your automobile coverage

Question 15

What should a 20-year-old man consider when he is thinking about purchasing a new car?

Accepted Answer

A)  The sportier the car he purchases is, the more his insurance will cost. 
B)  Because of his demographics, he will pay higher rates for car insurance. 
C)  The type of car he purchases could have a dramatic impact on the cost of his insurance. 
D)  All of the above are correct. 
E)  All but A are correct. 
A)  The sportier the car he purchases is, the more his insurance will cost. 
B)  Because of his demographics, he will pay higher rates for car insurance. 
C)  The type of car he purchases could have a dramatic impact on the cost of his insurance. 
D)  All of the above are correct. 
E)  All but A are correct.

Question 16

On your home owners policy ________ protects any personal property that's owned or used by the policyholder, regardless of the location of this property. In other words, if you're on a vacation in Hawaii and someone hits you with a pineapple and steals your suitcase, your personal property is still covered.

Accepted Answer

A)  Coverage A 
B)  Coverage B 
C)  Coverage C 
D)  Coverage D 
E)  none of the above 
A)  Coverage A 
B)  Coverage B 
C)  Coverage C 
D)  Coverage D 
E)  none of the above

Question 17

If you wanted to obtain an endorsement that automatically updates the level of property coverage based on an index of replacement costs that continually updates the cost of building a home, you would ask for a(n)

Accepted Answer

A)  inflation guard. 
B)  automatic adjustment policy. 
C)  replacement cost index. 
D)  continual adjustment policy. 
E)  none of the above 
A)  inflation guard. 
B)  automatic adjustment policy. 
C)  replacement cost index. 
D)  continual adjustment policy. 
E)  none of the above

Question 18

The replacement value of the house less accumulated depreciation (which is the decline in value over time due to wear and tear) is known as ________.

Accepted Answer

A)  actual cash value 
B)  replacement value 
C)  market value 
D)  depreciation 
E)  none of the above 
A)  actual cash value 
B)  replacement value 
C)  market value 
D)  depreciation 
E)  none of the above

Question 19

Which of the following is not a consideration in determining the amount of homeowner's insurance a person needs?

Accepted Answer

A)  Cover the entire replacement cost in the event of a complete loss. 
B)  Match the insurance coverage of similar homes in your neighborhood. 
C)  Protect against the effect of inflation eroding away your coverage. 
D)  Purchase flood or earthquake coverage if you are in an area prone to these occurrences. 
E)  Determine if detached structures are adequately covered under standard policies. 
A)  Cover the entire replacement cost in the event of a complete loss. 
B)  Match the insurance coverage of similar homes in your neighborhood. 
C)  Protect against the effect of inflation eroding away your coverage. 
D)  Purchase flood or earthquake coverage if you are in an area prone to these occurrences. 
E)  Determine if detached structures are adequately covered under standard policies.

Question 20

What is it about liability coverage that makes it so important?

Accepted Answer

A)  There is no way to know in advance what your potential liability loss will be. 
B)  Huge sums of money are handed out in settlements over lawsuits over auto accidents. 
C)  This coverage will pay all legal costs should you be involved in a civil case arising from an accident. 
D)  All of the above are correct. 
A)  There is no way to know in advance what your potential liability loss will be. 
B)  Huge sums of money are handed out in settlements over lawsuits over auto accidents. 
C)  This coverage will pay all legal costs should you be involved in a civil case arising from an accident. 
D)  All of the above are correct.

John Meadow rents an apartment and wants tenant's insurance or an ________ policy.

You have the most popular house on the block for the neighborhood children to play at. You have a trampoline, tree fort and jungle gym. Your family also has two large German shepherd dogs. What should you consider given the described situation?

Suppose Lisa and Eric do not purchase an adequate amount of insurance on their home. In the event of a claim, they would pay a portion of it. This is the

Your insurance credit score depends on, among other things, your payment history and the types of credit used.

In your many travels, you have suddenly found yourself in an auto accident - the very first one where you are at fault. Both cars are blocking a bridge with heavy city traffic. What should you do?

You had several of your son's friends over last night for a sleepover. While dropping off their child, one of the parents did not see your basketball hoop and smashed it beyond repair with her car. Where would you look for damage payment?

Which of the following are among the most common driver distractions that lead to insurance claims?

Your home is hit by a strong wind storm that causes serious damage to one end of it. The rest of your home is livable. What do you do?

What type of auto insurance protects you in the case of accident regardless of who caused the accident?

Charlie drives his own vehicle as a taxi on weekends in his home town. With his PAP coverage, his automobile is covered since he is carrying passengers for a fee.

Your written or video inventory of your assets should be kept in a safe place such as a lock box at your bank.

For a minor traffic accident, it is not necessary to call the police if you plan on submitting a claim to your insurance company.

Which of the following are not discounts for PAP coverage?

Francis was just learning to drive. She forgot to put the car into park and it rolled down the driveway and into the neighbor's automobile. What part of her automobile insurance policy will cover the damage to her neighbor's automobile?

What should a 20-year-old man consider when he is thinking about purchasing a new car?

If you wanted to obtain an endorsement that automatically updates the level of property coverage based on an index of replacement costs that continually updates the cost of building a home, you would ask for a(n)

The replacement value of the house less accumulated depreciation (which is the decline in value over time due to wear and tear) is known as ________.

Which of the following is not a consideration in determining the amount of homeowner's insurance a person needs?

What is it about liability coverage that makes it so important?

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

John Meadow rents an apartment and wants tenant's insurance or an ________ policy.

You have the most popular house on the block for the neighborhood children to play at. You have a trampoline, tree fort and jungle gym. Your family also has two large German shepherd dogs. What should you consider given the described situation?

Suppose Lisa and Eric do not purchase an adequate amount of insurance on their home. In the event of a claim, they would pay a portion of it. This is the

Your insurance credit score depends on, among other things, your payment history and the types of credit used.

In your many travels, you have suddenly found yourself in an auto accident - the very first one where you are at fault. Both cars are blocking a bridge with heavy city traffic. What should you do?

You had several of your son's friends over last night for a sleepover. While dropping off their child, one of the parents did not see your basketball hoop and smashed it beyond repair with her car. Where would you look for damage payment?

Which of the following are among the most common driver distractions that lead to insurance claims?

Your home is hit by a strong wind storm that causes serious damage to one end of it. The rest of your home is livable. What do you do?

What type of auto insurance protects you in the case of accident regardless of who caused the accident?

Charlie drives his own vehicle as a taxi on weekends in his home town. With his PAP coverage, his automobile is covered since he is carrying passengers for a fee.

Your written or video inventory of your assets should be kept in a safe place such as a lock box at your bank.

For a minor traffic accident, it is not necessary to call the police if you plan on submitting a claim to your insurance company.

Which of the following are not discounts for PAP coverage?

Francis was just learning to drive. She forgot to put the car into park and it rolled down the driveway and into the neighbor's automobile. What part of her automobile insurance policy will cover the damage to her neighbor's automobile?

What should a 20-year-old man consider when he is thinking about purchasing a new car?

If you wanted to obtain an endorsement that automatically updates the level of property coverage based on an index of replacement costs that continually updates the cost of building a home, you would ask for a(n)

The replacement value of the house less accumulated depreciation (which is the decline in value over time due to wear and tear) is known as ________.

Which of the following is not a consideration in determining the amount of homeowner's insurance a person needs?

What is it about liability coverage that makes it so important?

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