Question 1

Property insurance protects you from financial losses resulting from the damage to or destruction of your property or possessions.

Accepted Answer

A) True 
 B)False

Question 2

____ coverages can be included in an automobile insurance policy.

Accepted Answer

A) Liability 
B) Medical payments 
C) Physical damage 
D) (All of these.) 
A) Liability 
B) Medical payments 
C) Physical damage 
D) (All of these.)

Question 3

Insurance is designed to help people be better off after a loss than before the loss.

Accepted Answer

A) True 
 B)False

Question 4

Buying an alarm system as an option on your new sports car is an example of

Accepted Answer

A) risk avoidance. 
B) loss control. 
C) transferring risk. 
D) risk retention. 
A) risk avoidance. 
B) loss control. 
C) transferring risk. 
D) risk retention.

Question 5

Risk is the uncertainty about whether a financial loss will occur and how large the loss will be.

Accepted Answer

A) True 
 B)False

Question 6

Insurance covering the costs of major illness and injury would typically be considered necessary insurance.

Accepted Answer

A) True 
 B)False

Question 7

The insurance agent generally assesses whether a loss is covered and sets the dollar amount the company will pay.

Accepted Answer

A) True 
 B)False

Question 8

The first step in creating an insurance contract is

Accepted Answer

A) underwriting. 
B) determining a premium. 
C) completing an application. 
D) issuing the policy. 
A) underwriting. 
B) determining a premium. 
C) completing an application. 
D) issuing the policy.

Question 9

Homeowner's insurance includes

Accepted Answer

A) property coverage. 
B) liability coverage. 
C) life insurance coverage. 
D) both property coverage and liability coverage. 
A) property coverage. 
B) liability coverage. 
C) life insurance coverage. 
D) both property coverage and liability coverage.

Question 10

In no-fault states,the insurance company's rights to subrogate may be limited.

Accepted Answer

A) True 
 B)False

Question 11

Owning a motorcycle is an example of a peril.

Accepted Answer

A) True 
 B)False

Question 12

Auto insurance coverage is fairly standardized among different companies,but rates vary widely.

Accepted Answer

A) True 
 B)False

Question 13

When a star football running back pays an insurance company to insure his legs,this is an example of

Accepted Answer

A) risk avoidance. 
B) loss control. 
C) transferring risk. 
D) risk retention. 
A) risk avoidance. 
B) loss control. 
C) transferring risk. 
D) risk retention.

Question 14

Anna Louise just purchased a new motorcycle and an insurance policy to cover her potential losses related to the motorcycle.What strategy is Anna Louise using to handle risk?

Accepted Answer

A) Risk avoidance 
B) Loss control 
C) Risk reduction 
D) Risk retention 
A) Risk avoidance 
B) Loss control 
C) Risk reduction 
D) Risk retention

Question 15

For couples with two vehicles,each should be owned separately.

Accepted Answer

A) True 
 B)False

Question 16

The law of large numbers increases risk for the insurance company.

Accepted Answer

A) True 
 B)False

Question 17

Lina has 20/40/15 automobile liability coverage and is involved in an accident that is her fault.Damages suffered by the other parties in the accident are as follows:
​
  ​
How much of these claims will not be covered by the insurance company and therefore come out of Lina's budget?

Accepted Answer

A) $10,000 
B) $7,000 
C) $5,000 
D) $3,000 
A) $10,000 
B) $7,000 
C) $5,000 
D) $3,000

Question 18

The HO-6 form is especially written to meet the needs of condominium owners.

Accepted Answer

A) True 
 B)False

Question 19

Fortuitous means unexpected both in terms of timing and magnitude.

Accepted Answer

A) True 
 B)False

Question 20

The cost of a $1 million professional liability policy would vary slightly regardless of the profession of the policy buyer.

Accepted Answer

A) True 
 B)False

Property insurance protects you from financial losses resulting from the damage to or destruction of your property or possessions.

____ coverages can be included in an automobile insurance policy.

Insurance is designed to help people be better off after a loss than before the loss.

Buying an alarm system as an option on your new sports car is an example of

Risk is the uncertainty about whether a financial loss will occur and how large the loss will be.

Insurance covering the costs of major illness and injury would typically be considered necessary insurance.

The insurance agent generally assesses whether a loss is covered and sets the dollar amount the company will pay.

The first step in creating an insurance contract is

Homeowner's insurance includes

In no-fault states,the insurance company's rights to subrogate may be limited.

Owning a motorcycle is an example of a peril.

Auto insurance coverage is fairly standardized among different companies,but rates vary widely.

When a star football running back pays an insurance company to insure his legs,this is an example of

Anna Louise just purchased a new motorcycle and an insurance policy to cover her potential losses related to the motorcycle.What strategy is Anna Louise using to handle risk?

For couples with two vehicles,each should be owned separately.

The law of large numbers increases risk for the insurance company.

Lina has 20/40/15 automobile liability coverage and is involved in an accident that is her fault.Damages suffered by the other parties in the accident are as follows: How much of these claims will not be covered by the insurance company and therefore come out of Lina's budget?

The HO-6 form is especially written to meet the needs of condominium owners.

Fortuitous means unexpected both in terms of timing and magnitude.

The cost of a $1 million professional liability policy would vary slightly regardless of the profession of the policy buyer.

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

Property insurance protects you from financial losses resulting from the damage to or destruction of your property or possessions.

____ coverages can be included in an automobile insurance policy.

Insurance is designed to help people be better off after a loss than before the loss.

Buying an alarm system as an option on your new sports car is an example of

Risk is the uncertainty about whether a financial loss will occur and how large the loss will be.

Insurance covering the costs of major illness and injury would typically be considered necessary insurance.

The insurance agent generally assesses whether a loss is covered and sets the dollar amount the company will pay.

The first step in creating an insurance contract is

Homeowner's insurance includes

In no-fault states,the insurance company's rights to subrogate may be limited.

Owning a motorcycle is an example of a peril.

Auto insurance coverage is fairly standardized among different companies,but rates vary widely.

When a star football running back pays an insurance company to insure his legs,this is an example of

Anna Louise just purchased a new motorcycle and an insurance policy to cover her potential losses related to the motorcycle.What strategy is Anna Louise using to handle risk?

For couples with two vehicles,each should be owned separately.

The law of large numbers increases risk for the insurance company.

Lina has 20/40/15 automobile liability coverage and is involved in an accident that is her fault.Damages suffered by the other parties in the accident are as follows: ​ ​ How much of these claims will not be covered by the insurance company and therefore come out of Lina's budget?

The HO-6 form is especially written to meet the needs of condominium owners.

Fortuitous means unexpected both in terms of timing and magnitude.

The cost of a $1 million professional liability policy would vary slightly regardless of the profession of the policy buyer.

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

Lina has 20/40/15 automobile liability coverage and is involved in an accident that is her fault.Damages suffered by the other parties in the accident are as follows: How much of these claims will not be covered by the insurance company and therefore come out of Lina's budget?