Question 1

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 2

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 a

Question 3

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

Question 4

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 5

Which of the following is not a determinant of the cost of your automobile insurance rates?

Accepted Answer

A)  Your age 
B)  Your credit score 
C)  Your driving record 
D)  Your marital status 
E)  The number of children that you have 
A)  Your age 
B)  Your credit score 
C)  Your driving record 
D)  Your marital status 
E)  The number of children that you have

Question 6

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 7

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 8

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 9

Which of the following will most likely pay the least for automobile insurance,assuming they all drive identical cars?

Accepted Answer

A)  A 29-year-old woman with a good credit score and driving record 
B)  A 55-year-old woman with two drunk driving arrests 
C)  A 32-year-old married man with bad credit and a bad driving record 
D)  A 20-year-old man who drives 50,000 miles per year and lives in a big city 
A)  A 29-year-old woman with a good credit score and driving record 
B)  A 55-year-old woman with two drunk driving arrests 
C)  A 32-year-old married man with bad credit and a bad driving record 
D)  A 20-year-old man who drives 50,000 miles per year and lives in a big city

Question 10

The recommended limit on both collision and comprehensive physical coverage damage is the cash value of your automobile.

Accepted Answer

A) True 
 B)False

Question 11

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 12

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 13

Generally,a personal umbrella policy is an expensive policy that provides excess liability insurance over basic underlying contracts.

Accepted Answer

A) True 
 B)False

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

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 16

According to the Keown book,why don't renters typically have renter's insurance?

Accepted Answer

A)  They felt the insurance was too expensive. 
B)  They didn't know they needed coverage. 
C)  They have never heard of such insurance. 
D)  All of the above 
A)  They felt the insurance was too expensive. 
B)  They didn't know they needed coverage. 
C)  They have never heard of such insurance. 
D)  All of the above

Question 17

________ auto insurance pays for your losses and the losses suffered by your passengers,while the other driver's insurance would pay for his or her losses.This arrangement is made to keep insurance costs down,especially for settling claims.

Accepted Answer

A)  Comprehensive 
B)  No-fault 
C)  Your fault 
D)  PAP 
E)  PIP 
A)  Comprehensive 
B)  No-fault 
C)  Your fault 
D)  PAP 
E)  PIP

Question 18

Driving at 55 miles per hour for five seconds-the minimum amount of time that texting takes your attention off of the road-you'll travel the length of a football field without looking.

Accepted Answer

A) True 
 B)False

Question 19

Provide an explanation of Section II: Personal Liability Coverage.

Accepted Answer

This part of a homeowner's insurance pol

Question 20

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

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

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?

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

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.

Which of the following is not a determinant of the cost of your automobile insurance rates?

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?

What determines the cost of your homeowner's insurance?

Which of the following will most likely pay the least for automobile insurance,assuming they all drive identical cars?

The recommended limit on both collision and comprehensive physical coverage damage is the cash value of your automobile.

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

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

Generally,a personal umbrella policy is an expensive policy that provides excess liability insurance over basic underlying contracts.

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

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

According to the Keown book,why don't renters typically have renter's insurance?

________ auto insurance pays for your losses and the losses suffered by your passengers,while the other driver's insurance would pay for his or her losses.This arrangement is made to keep insurance costs down,especially for settling claims.

Driving at 55 miles per hour for five seconds-the minimum amount of time that texting takes your attention off of the road-you'll travel the length of a football field without looking.

Provide an explanation of Section II: Personal Liability Coverage.

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

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

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

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?

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

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.

Which of the following is not a determinant of the cost of your automobile insurance rates?

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?

What determines the cost of your homeowner's insurance?

Which of the following will most likely pay the least for automobile insurance,assuming they all drive identical cars?

The recommended limit on both collision and comprehensive physical coverage damage is the cash value of your automobile.

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

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

Generally,a personal umbrella policy is an expensive policy that provides excess liability insurance over basic underlying contracts.

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

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

According to the Keown book,why don't renters typically have renter's insurance?

________ auto insurance pays for your losses and the losses suffered by your passengers,while the other driver's insurance would pay for his or her losses.This arrangement is made to keep insurance costs down,especially for settling claims.

Driving at 55 miles per hour for five seconds-the minimum amount of time that texting takes your attention off of the road-you'll travel the length of a football field without looking.

Provide an explanation of Section II: Personal Liability Coverage.

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

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