Question 1

Your apartment building burned down while you were on vacation.Fortunately,you have renter's insurance.What will your policy cover?

Accepted Answer

A)  Any damages to the building structure 
B)  Your neighbor's personal property 
C)  Your hotel and additional expenses based on a percentage of your property coverage 
D)  All of the above are correct. 
E)  None of the above are correct. 
A)  Any damages to the building structure 
B)  Your neighbor's personal property 
C)  Your hotel and additional expenses based on a percentage of your property coverage 
D)  All of the above are correct. 
E)  None of the above are correct.

Question 2

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 3

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 4

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 5

An attached garage is covered under Coverage B: Other structures.

Accepted Answer

A) True 
 B)False

Question 6

With automobile insurance damage claims,Insurance companies will use the concept of "contributory negligence" to determine how much to pay in damages.What does this concept mean?

Accepted Answer

The term contributory negligence deals w

Question 7

An HO-4 policy is a renter's insurance policy that protects the renter's personal property.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is true?

Accepted Answer

A)  The lower your insurance credit score, the higher your homeowner's insurance rate will be. 
B)  The higher your insurance credit score, the higher your homeowner's insurance rate will be. 
A)  The lower your insurance credit score, the higher your homeowner's insurance rate will be. 
B)  The higher your insurance credit score, the higher your homeowner's insurance rate will be.

Question 9

Most companies allow six endorsements or supplemental coverages to meet their customers' needs.Name and describe the six.Which one is unique and stands apart from the others?

Accepted Answer

-Personal articles floaters provide addi

Question 10

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 11

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 12

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 13

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 14

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 15

You made a list of things to do when involved in an auto accident - but you lost it.You have just been in a wreck with another vehicle.What are five important things to do now?

Accepted Answer

1. Get help for the injured and have som

Question 16

A teenage driver crashes her parents' minivan into an office building,causing $85,000 in damage to the building.The automobile liability insurance limits are 100/250/75.How will the damages be allocated between the driver and the insurance company?

Accepted Answer

A)  The driver will be responsible for $85,000. 
B)  The driver will be responsible for $75,000, the insurance company for $10,000. 
C)  The driver will be responsible for $10,000, the insurance company for $75,000. 
D)  The insurance company will be responsible for $85,000. 
A)  The driver will be responsible for $85,000. 
B)  The driver will be responsible for $75,000, the insurance company for $10,000. 
C)  The driver will be responsible for $10,000, the insurance company for $75,000. 
D)  The insurance company will be responsible for $85,000.

Question 17

When you purchase a(n)________,you are obtaining an extension to a homeowner's insurance policy that provides coverage for all personal property regardless of where it is located.

Accepted Answer

A)  uninsured property addendum 
B)  property addendum 
C)  personal rider 
D)  personal articles floater 
E)  none of the above 
A)  uninsured property addendum 
B)  property addendum 
C)  personal rider 
D)  personal articles floater 
E)  none of the above

Question 18

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 19

Amy Lambert's home is insured for $85,000 and her detached garage is destroyed by a windstorm.She hopes to collect $11,850 under her homeowner's policy.What will happen?

Accepted Answer

A)  Amy will receive $11,850 under Coverage B: Other structures 
B)  Amy will receive $11,850 under Coverage A: Dwelling 
C)  Amy will receive $8,500 under Coverage B: Other structures 
D)  Amy will receive $8,500 under Coverage A: Dwelling 
E)  Amy will receive $11,850 under Coverage C: Personal property 
A)  Amy will receive $11,850 under Coverage B: Other structures 
B)  Amy will receive $11,850 under Coverage A: Dwelling 
C)  Amy will receive $8,500 under Coverage B: Other structures 
D)  Amy will receive $8,500 under Coverage A: Dwelling 
E)  Amy will receive $11,850 under Coverage C: Personal property

Question 20

You want to keep your insurance costs down on your car.Prepare a list of things to ask your agent and to do in general.

Accepted Answer

1. Is your company a high-quality,top-ra

Your apartment building burned down while you were on vacation.Fortunately,you have renter's insurance.What will your policy cover?

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

Which of the following are not discounts for PAP coverage?

An attached garage is covered under Coverage B: Other structures.

With automobile insurance damage claims,Insurance companies will use the concept of "contributory negligence" to determine how much to pay in damages.What does this concept mean?

An HO-4 policy is a renter's insurance policy that protects the renter's personal property.

Which of the following statements is true?

Most companies allow six endorsements or supplemental coverages to meet their customers' needs.Name and describe the six.Which one is unique and stands apart from the others?

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

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

Uninsured motorists coverage

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

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

You made a list of things to do when involved in an auto accident - but you lost it.You have just been in a wreck with another vehicle.What are five important things to do now?

A teenage driver crashes her parents' minivan into an office building,causing $85,000 in damage to the building.The automobile liability insurance limits are 100/250/75.How will the damages be allocated between the driver and the insurance company?

When you purchase a(n)________,you are obtaining an extension to a homeowner's insurance policy that provides coverage for all personal property regardless of where it is located.

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

Amy Lambert's home is insured for $85,000 and her detached garage is destroyed by a windstorm.She hopes to collect $11,850 under her homeowner's policy.What will happen?

You want to keep your insurance costs down on your car.Prepare a list of things to ask your agent and to do in general.

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

Exam 10: Property and Liability Insurance

Your apartment building burned down while you were on vacation.Fortunately,you have renter's insurance.What will your policy cover?

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

Which of the following are not discounts for PAP coverage?

An attached garage is covered under Coverage B: Other structures.

With automobile insurance damage claims,Insurance companies will use the concept of "contributory negligence" to determine how much to pay in damages.What does this concept mean?

An HO-4 policy is a renter's insurance policy that protects the renter's personal property.

Which of the following statements is true?

Most companies allow six endorsements or supplemental coverages to meet their customers' needs.Name and describe the six.Which one is unique and stands apart from the others?

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

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

Uninsured motorists coverage

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

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

You made a list of things to do when involved in an auto accident - but you lost it.You have just been in a wreck with another vehicle.What are five important things to do now?

A teenage driver crashes her parents' minivan into an office building,causing $85,000 in damage to the building.The automobile liability insurance limits are 100/250/75.How will the damages be allocated between the driver and the insurance company?

When you purchase a(n)________,you are obtaining an extension to a homeowner's insurance policy that provides coverage for all personal property regardless of where it is located.

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

Amy Lambert's home is insured for $85,000 and her detached garage is destroyed by a windstorm.She hopes to collect $11,850 under her homeowner's policy.What will happen?

You want to keep your insurance costs down on your car.Prepare a list of things to ask your agent and to do in general.

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