Question 1

One should assume risks that are affordable and insure against losses that would be unaffordable.

Accepted Answer

A) True 
 B)False

Question 2

Risk-avoidance homeowners might want to insure their homes for 100 percent of replacement cost.

Accepted Answer

A) True 
 B)False

Question 3

Natalie has an auto insurance policy that includes both collision and comprehensive coverage.She has a $500 deductible on her collision coverage and a $200 deductible on her comprehensive coverage.Her car has a book value of $7,000 when her car is damaged by a tornado.The car will cost $8,500 to repair.How much will Natalie's insurance company pay in this situation?

Accepted Answer

A) $6,500 
B) $6,800 
C) $8,000 
D) $8,300 
A) $6,500 
B) $6,800 
C) $8,000 
D) $8,300

Question 4

Fire,theft,illness,and accidents are all examples of

Accepted Answer

A) exposures 
B) perils 
C) hazards 
D) losses 
A) exposures 
B) perils 
C) hazards 
D) losses

Question 5

What is the first step in the risk-management process?

Accepted Answer

A) Evaluate the potential losses that might result. 
B) Administer the risk-management program. 
C) Identify sources of risk. 
D) Decide on the best way(s) to handle risk and losses. 
A) Evaluate the potential losses that might result. 
B) Administer the risk-management program. 
C) Identify sources of risk. 
D) Decide on the best way(s) to handle risk and losses.

Question 6

Theft damage is the most common peril for physical damage to automobiles.

Accepted Answer

A) True 
 B)False

Question 7

Meeting an 80 percent replacement-cost requirement in your homeowner's insurance enables you to avoid incomplete coverage on small losses to your dwelling.

Accepted Answer

A) True 
 B)False

Question 8

You should not keep the documentation for your personal property

Accepted Answer

A) at home. 
B) in a safe-deposit box. 
C) with a relative. 
D) at work. 
A) at home. 
B) in a safe-deposit box. 
C) with a relative. 
D) at work.

Question 9

Jennifer and Chad have a homeowner's policy with contents replacement-cost coverage for personal property up to 50 percent of the insurance on their home.What will the insurance company pay for their stolen property under the following situation?
  ​

Accepted Answer

A) $19,500 
B) $34,500 
C) $35,000 
D) $44,500 
A) $19,500 
B) $34,500 
C) $35,000 
D) $44,500

Question 10

Classes of insured consist of insured who share similar characteristics.____ applicants in the class may qualify for lower premiums.

Accepted Answer

A) Standard 
B) Preferred 
C) Unacceptable 
D) Substandard 
A) Standard 
B) Preferred 
C) Unacceptable 
D) Substandard

Question 11

An insurance policy is a contract between the person buying insurance and the insurance company.

Accepted Answer

A) True 
 B)False

Question 12

Residents of certain states such as Florida and Tennessee would be wise to add sinkhole insurance to their homeowner's insurance plan as it is typically not covered in the standard policy.

Accepted Answer

A) True 
 B)False

Question 13

When you have a homeowner's loss,you should not

Accepted Answer

A) contact your insurance agent. 
B) file a report with the police or other appropriate agency. 
C) make permanent repairs until the insurance company has inspected the premises. 
D) videotape or photograph the damage. 
A) contact your insurance agent. 
B) file a report with the police or other appropriate agency. 
C) make permanent repairs until the insurance company has inspected the premises. 
D) videotape or photograph the damage.

Question 14

An insurance policy will pay the actual loss suffered not to exceed the policy limits.

Accepted Answer

A) True 
 B)False

Question 15

____ are independent business people who act as third-party links between insurers and insureds.

Accepted Answer

A) Exclusive insurance agents 
B) Independent insurance agents 
C) Direct sellers 
D) Underwriters 
A) Exclusive insurance agents 
B) Independent insurance agents 
C) Direct sellers 
D) Underwriters

Question 16

Which of the following HO forms is especially written renters?

Accepted Answer

A) HO-3 
B) HO-4 
C) HO-6 
D) HO-8 
A) HO-3 
B) HO-4 
C) HO-6 
D) HO-8

Question 17

____ policies provide open-peril protection for the dwellings covered under the policy.

Accepted Answer

A) HO-3 
B) HO-4 
C) HO-6 
D) HO-8 
A) HO-3 
B) HO-4 
C) HO-6 
D) HO-8

Question 18

____ is the most the insurance company would pay for both bodily injury and property damage liability in any one accident if the insured carried 300/500/200 coverage.

Accepted Answer

A) $300,000 
B) $500,000 
C) $700,000 
D) $800,000 
A) $300,000 
B) $500,000 
C) $700,000 
D) $800,000

Question 19

Actual cash value of an asset represents the purchase price of the property less depreciation.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following types of insurance can be purchased only through a federal government program?

Accepted Answer

A) Earthquake insurance 
B) Flood insurance 
C) Renter's insurance 
D) Medical payments insurance 
A) Earthquake insurance 
B) Flood insurance 
C) Renter's insurance 
D) Medical payments insurance

One should assume risks that are affordable and insure against losses that would be unaffordable.

Risk-avoidance homeowners might want to insure their homes for 100 percent of replacement cost.

Fire,theft,illness,and accidents are all examples of

What is the first step in the risk-management process?

Theft damage is the most common peril for physical damage to automobiles.

Meeting an 80 percent replacement-cost requirement in your homeowner's insurance enables you to avoid incomplete coverage on small losses to your dwelling.

You should not keep the documentation for your personal property

Jennifer and Chad have a homeowner's policy with contents replacement-cost coverage for personal property up to 50 percent of the insurance on their home.What will the insurance company pay for their stolen property under the following situation?

Classes of insured consist of insured who share similar characteristics.____ applicants in the class may qualify for lower premiums.

An insurance policy is a contract between the person buying insurance and the insurance company.

Residents of certain states such as Florida and Tennessee would be wise to add sinkhole insurance to their homeowner's insurance plan as it is typically not covered in the standard policy.

When you have a homeowner's loss,you should not

An insurance policy will pay the actual loss suffered not to exceed the policy limits.

____ are independent business people who act as third-party links between insurers and insureds.

Which of the following HO forms is especially written renters?

____ policies provide open-peril protection for the dwellings covered under the policy.

____ is the most the insurance company would pay for both bodily injury and property damage liability in any one accident if the insured carried 300/500/200 coverage.

Actual cash value of an asset represents the purchase price of the property less depreciation.

Which of the following types of insurance can be purchased only through a federal government program?

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters

Exam 10: Managing Property and Liability Risk

One should assume risks that are affordable and insure against losses that would be unaffordable.

Risk-avoidance homeowners might want to insure their homes for 100 percent of replacement cost.

Fire,theft,illness,and accidents are all examples of

What is the first step in the risk-management process?

Theft damage is the most common peril for physical damage to automobiles.

Meeting an 80 percent replacement-cost requirement in your homeowner's insurance enables you to avoid incomplete coverage on small losses to your dwelling.

You should not keep the documentation for your personal property

Jennifer and Chad have a homeowner's policy with contents replacement-cost coverage for personal property up to 50 percent of the insurance on their home.What will the insurance company pay for their stolen property under the following situation? ​

Classes of insured consist of insured who share similar characteristics.____ applicants in the class may qualify for lower premiums.

An insurance policy is a contract between the person buying insurance and the insurance company.

Residents of certain states such as Florida and Tennessee would be wise to add sinkhole insurance to their homeowner's insurance plan as it is typically not covered in the standard policy.

When you have a homeowner's loss,you should not

An insurance policy will pay the actual loss suffered not to exceed the policy limits.

____ are independent business people who act as third-party links between insurers and insureds.

Which of the following HO forms is especially written renters?

____ policies provide open-peril protection for the dwellings covered under the policy.

____ is the most the insurance company would pay for both bodily injury and property damage liability in any one accident if the insured carried 300/500/200 coverage.

Actual cash value of an asset represents the purchase price of the property less depreciation.

Which of the following types of insurance can be purchased only through a federal government program?

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters

Jennifer and Chad have a homeowner's policy with contents replacement-cost coverage for personal property up to 50 percent of the insurance on their home.What will the insurance company pay for their stolen property under the following situation?