Question 1

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. E

Question 2

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 protection for you if you are legally liable for bodily injury and property damage caused by your automobile.It includes payment for any judgment awarded,court costs,and legal defense fees.
Part B: Medical expense coverage pays medical bills and funeral expenses,with limits per person,for you and your passengers.
Part C: Uninsured motorist's protection coverage protects you by covering bodily injury and property damage caused by drivers without liability insurance.It is required in many states.
Part D: Damage to your automobile provides coverage for collision with another vehicle or an object.With collision insurance,losses are covered regardless of whose fault it is.

Question 3

Since there were no witnesses to the robbery at your apartment,there is no reason to contact the police.

Accepted Answer

A) True 
 B)False  False

Question 4

Property insurance protects you from the financial risk associated with property losses.

Accepted Answer

A) True 
 B)False

Question 5

Alfred lost his 3-year-old camera.It cost him $200 three years ago and had a life expectancy of 6 years.Alfred has actual cash value insurance on this camera,which means his insurance company will issue him a check for ________ for his loss.A new camera costs $150.

Accepted Answer

A)  $75 
B)  $150 
C)  $200 
D)  none of the above 
A)  $75 
B)  $150 
C)  $200 
D)  none of the above

Question 6

You were standing on the sidewalk waiting for a bus when a car lost control,jumped the curb,and hit you in the leg causing medical injuries.Which of the following provides reimbursement for your medical expenses?

Accepted Answer

A)  The driver's collision coverage. 
B)  The driver's liability coverage. 
C)  Your comprehensive physical damages coverage. 
D)  Your medical expenses coverage 
E)  Both B and D are correct. 
A)  The driver's collision coverage. 
B)  The driver's liability coverage. 
C)  Your comprehensive physical damages coverage. 
D)  Your medical expenses coverage 
E)  Both B and D are correct.

Question 7

Rosemary was hit by another vehicle on the way home from work.She believes the other driver was under the influence of alcohol.Rosemary is not within her rights to demand that the other driver take an alcohol test.

Accepted Answer

A) True 
 B)False

Question 8

Elvis drove expensive cars.Which of the following was not a determinant in his automobile insurance costs?

Accepted Answer

A)  Type of vehicle 
B)  His personal characteristics 
C)  His driving record 
D)  Where he lived 
E)  All of the above WERE determinants in the cost of his auto insurance. 
A)  Type of vehicle 
B)  His personal characteristics 
C)  His driving record 
D)  Where he lived 
E)  All of the above WERE determinants in the cost of his auto insurance.

Question 9

Reggie was hosting a BBQ when the deck fell off his house.Several of his friends were hurt in the accident.Luckily for Reggie he has ________ coverage on his home owner's insurance.

Accepted Answer

A)  personal articles 
B)  loss of use 
C)  personal liability 
D)  none of the above 
A)  personal articles 
B)  loss of use 
C)  personal liability 
D)  none of the above

Question 10

Comprehensive physical damage coverage would cover damage if your car were hit in a parking lot.

Accepted Answer

A) True 
 B)False

Question 11

A lower insurance credit score generally results in lower homeowner's insurance rates.

Accepted Answer

A) True 
 B)False

Question 12

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 13

Combined single limit liability coverage allows for either separate coverage limits for bodily injury and property damage,split-coverage limits per person,or both.

Accepted Answer

A) True 
 B)False

Question 14

In addition to paying the policy limits for the damages you caused,the insurer also agrees under Part A to defend you in any civil cases arising from the accident and to pay all legal costs.

Accepted Answer

A) True 
 B)False

Question 15

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 16

The greater your financial assets,the less automobile insurance coverage you should carry because you can afford the financial loss.

Accepted Answer

A) True 
 B)False

Question 17

Your home and property have a market value of $240,000.To meet the coinsurance provision,you would need at least ________ of insurance.

Accepted Answer

A)  $144,000 
B)  $168,000 
C)  $192,000 
D)  $216,000 
E)  none of the above 
A)  $144,000 
B)  $168,000 
C)  $192,000 
D)  $216,000 
E)  none of the above

Question 18

With PAP coverage,if you're driving a car you don't own,your medical expenses won't be covered but those of other injured passengers or pedestrians will be.

Accepted Answer

A) True 
 B)False

Question 19

Since most homeowners' claims are for relatively small amounts,high deductibles will keep your insurance costs down.

Accepted Answer

A) True 
 B)False

Question 20

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.

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

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:

Since there were no witnesses to the robbery at your apartment,there is no reason to contact the police.

Property insurance protects you from the financial risk associated with property losses.

Alfred lost his 3-year-old camera.It cost him $200 three years ago and had a life expectancy of 6 years.Alfred has actual cash value insurance on this camera,which means his insurance company will issue him a check for ________ for his loss.A new camera costs $150.

You were standing on the sidewalk waiting for a bus when a car lost control,jumped the curb,and hit you in the leg causing medical injuries.Which of the following provides reimbursement for your medical expenses?

Rosemary was hit by another vehicle on the way home from work.She believes the other driver was under the influence of alcohol.Rosemary is not within her rights to demand that the other driver take an alcohol test.

Elvis drove expensive cars.Which of the following was not a determinant in his automobile insurance costs?

Reggie was hosting a BBQ when the deck fell off his house.Several of his friends were hurt in the accident.Luckily for Reggie he has ________ coverage on his home owner's insurance.

Comprehensive physical damage coverage would cover damage if your car were hit in a parking lot.

A lower insurance credit score generally results in lower homeowner's insurance rates.

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

Combined single limit liability coverage allows for either separate coverage limits for bodily injury and property damage,split-coverage limits per person,or both.

In addition to paying the policy limits for the damages you caused,the insurer also agrees under Part A to defend you in any civil cases arising from the accident and to pay all legal costs.

The greater your financial assets,the less automobile insurance coverage you should carry because you can afford the financial loss.

Your home and property have a market value of $240,000.To meet the coinsurance provision,you would need at least ________ of insurance.

With PAP coverage,if you're driving a car you don't own,your medical expenses won't be covered but those of other injured passengers or pedestrians will be.

Since most homeowners' claims are for relatively small amounts,high deductibles will keep your insurance costs down.

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 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

Student and Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Investment Basics

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

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

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:

Since there were no witnesses to the robbery at your apartment,there is no reason to contact the police.

Property insurance protects you from the financial risk associated with property losses.

Alfred lost his 3-year-old camera.It cost him $200 three years ago and had a life expectancy of 6 years.Alfred has actual cash value insurance on this camera,which means his insurance company will issue him a check for ________ for his loss.A new camera costs $150.

You were standing on the sidewalk waiting for a bus when a car lost control,jumped the curb,and hit you in the leg causing medical injuries.Which of the following provides reimbursement for your medical expenses?

Rosemary was hit by another vehicle on the way home from work.She believes the other driver was under the influence of alcohol.Rosemary is not within her rights to demand that the other driver take an alcohol test.

Elvis drove expensive cars.Which of the following was not a determinant in his automobile insurance costs?

Reggie was hosting a BBQ when the deck fell off his house.Several of his friends were hurt in the accident.Luckily for Reggie he has ________ coverage on his home owner's insurance.

Comprehensive physical damage coverage would cover damage if your car were hit in a parking lot.

A lower insurance credit score generally results in lower homeowner's insurance rates.

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

Combined single limit liability coverage allows for either separate coverage limits for bodily injury and property damage,split-coverage limits per person,or both.

In addition to paying the policy limits for the damages you caused,the insurer also agrees under Part A to defend you in any civil cases arising from the accident and to pay all legal costs.

The greater your financial assets,the less automobile insurance coverage you should carry because you can afford the financial loss.

Your home and property have a market value of $240,000.To meet the coinsurance provision,you would need at least ________ of insurance.

With PAP coverage,if you're driving a car you don't own,your medical expenses won't be covered but those of other injured passengers or pedestrians will be.

Since most homeowners' claims are for relatively small amounts,high deductibles will keep your insurance costs down.

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 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

Student and Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Investment Basics

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