Question 1

The best way to protect a small child in an auto is

Accepted Answer

A)  to let the child ride in the parent's lap, 
B)  to let the child ride in the back seat of the car, 
C)  to place the child in a special car seat next to the driver, 
D)  to place the child in a special car seat in the back seat of the car. 
A)  to let the child ride in the parent's lap, 
B)  to let the child ride in the back seat of the car, 
C)  to place the child in a special car seat next to the driver, 
D)  to place the child in a special car seat in the back seat of the car. D

Question 2

Lowering speed limits on interstate highways helps reduce traffic deaths.

Accepted Answer

A) True 
 B)False  True

Question 3

In no-fault auto insurance, dollar thresholds are better than verbal ones at reducing costs.

Accepted Answer

A) True 
 B)False  False

Question 4

Seat belts

Accepted Answer

A)  are very cost-effective, 
B)  are very cost-effective if there is a high utilization rate, 
C)  can be effective when combined with television ads designed to encourage seat belt use, 
D)  are better than air bags. 
A)  are very cost-effective, 
B)  are very cost-effective if there is a high utilization rate, 
C)  can be effective when combined with television ads designed to encourage seat belt use, 
D)  are better than air bags.

Question 5

Automobile insurance fraud has increased in recent years.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following does not improve auto safety?

Accepted Answer

A)  lightweight, high-mileage cars, 
B)  air bags, 
C)  child restraint laws, 
D)  center-mounted brake lights. 
A)  lightweight, high-mileage cars, 
B)  air bags, 
C)  child restraint laws, 
D)  center-mounted brake lights.

Question 7

Because the legal drinking age is 21, drinking and driving is not a problem among teenagers.

Accepted Answer

A) True 
 B)False

Question 8

Drunk driving can be significantly reduced

Accepted Answer

A)  with harsh penalties, 
B)  by raising the legal driving age, 
C)  by increasing the probability of being caught and punished, 
D)  by advertisements against drinking and driving. 
A)  with harsh penalties, 
B)  by raising the legal driving age, 
C)  by increasing the probability of being caught and punished, 
D)  by advertisements against drinking and driving.

Question 9

The auto insurance industry has few companies selling insurance.

Accepted Answer

A) True 
 B)False

Question 10

No-fault auto insurance will reduce auto costs because

Accepted Answer

A)  it will pay more people, 
B)  large losses will not be paid, 
C)  lawyer fees will increase, 
D)  more funds will be distributed to injured parties. 
A)  it will pay more people, 
B)  large losses will not be paid, 
C)  lawyer fees will increase, 
D)  more funds will be distributed to injured parties.

Question 11

Better emergency room care has helped reduce auto accident deaths.

Accepted Answer

A) True 
 B)False

Question 12

The state with the highest average auto insurance premium is:

Accepted Answer

A)  Alabama, 
B)  Indiana, 
C)  New Jersey, 
D)  Wisconsin 
A)  Alabama, 
B)  Indiana, 
C)  New Jersey, 
D)  Wisconsin

Question 13

Matching :
-A driver who has 0.10 % alcohol in his or her blood is said to be __________________.

Accepted Answer

A)  driving while intoxicated or DWI 1. 
B)  No-fault 
C)  verbal threshold 
A)  driving while intoxicated or DWI 1. 
B)  No-fault 
C)  verbal threshold

Question 14

OEM parts are only slightly more expensive than aftermarket parts.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not a way to reduce auto insurance costs?

Accepted Answer

A)  reduce frequency of accidents, 
B)  restrict payments to injured parties, 
C)  increase speed limits on interstate highways, 
D)  build stronger cars. 
A)  reduce frequency of accidents, 
B)  restrict payments to injured parties, 
C)  increase speed limits on interstate highways, 
D)  build stronger cars.

Question 16

Under no-fault auto insurance plans that are used in the United States,

Accepted Answer

A)  insurers have a limited right to sue, 
B)  insureds cannot sue the negligent party, 
C)  insurance premiums are always lower than before the law was enacted, 
D)  insureds have a restricted right to sue negligent parties. 
A)  insurers have a limited right to sue, 
B)  insureds cannot sue the negligent party, 
C)  insurance premiums are always lower than before the law was enacted, 
D)  insureds have a restricted right to sue negligent parties.

Question 17

Auto insurance rates are directly influenced by hospital costs.

Accepted Answer

A) True 
 B)False

Question 18

No-fault auto insurance will always save insureds money.

Accepted Answer

A) True 
 B)False

Question 19

Matching :
-_________________ is a type of automobile insurance program that restricts one's right to sue. Each party looks to his or her insurance for recovery.

Accepted Answer

A)  driving while intoxicated or DWI 1. 
B)  No-fault 
C)  verbal threshold 
A)  driving while intoxicated or DWI 1. 
B)  No-fault 
C)  verbal threshold

Question 20

Teenage drivers who have taken drivers education courses are much less likely to be involved in an auto accident.

Accepted Answer

A) True 
 B)False

Exam 14: Risk Management for Auto Ownerspart II

The best way to protect a small child in an auto is

Lowering speed limits on interstate highways helps reduce traffic deaths.

In no-fault auto insurance, dollar thresholds are better than verbal ones at reducing costs.

Seat belts

Automobile insurance fraud has increased in recent years.

Which of the following does not improve auto safety?

Because the legal drinking age is 21, drinking and driving is not a problem among teenagers.

Drunk driving can be significantly reduced

The auto insurance industry has few companies selling insurance.

No-fault auto insurance will reduce auto costs because

Better emergency room care has helped reduce auto accident deaths.

The state with the highest average auto insurance premium is:

Matching : -A driver who has 0.10 % alcohol in his or her blood is said to be __________________.

OEM parts are only slightly more expensive than aftermarket parts.

Which of the following is not a way to reduce auto insurance costs?

Under no-fault auto insurance plans that are used in the United States,

Auto insurance rates are directly influenced by hospital costs.

No-fault auto insurance will always save insureds money.

Matching : -_________________ is a type of automobile insurance program that restricts one's right to sue. Each party looks to his or her insurance for recovery.

Teenage drivers who have taken drivers education courses are much less likely to be involved in an auto accident.

Introduction to Risk

Risk Identification and Evaluation

Property and Liability Loss Exposures

Life, Health, and Loss of Income Exposures

Risk Management Techniques: Noninsurance Methods

Insurance As a Risk Management Technique: Principles

Insurance As a Risk Management Technique: Policy Provisions

Selecting and Implementing Risk Management Techniques

Risk Management and Commercial Propertypart I

Risk Management and Commercial Propertypart II

Risk Management and Commercial Liability Risk

Workers Compensation and Alternative Risk Financing

Risk Management for Auto Ownerspart I

Risk Management for Homeowners

Loss of Life

Loss of Health

Retirement Planning and Annuities

Employee Benefits: Life and Health Benefits

Employee Benefits: Retirement Plans

Financial and Estate Planning

Risk Management and the Insurance Industry

Functions and Organization of Insurers

Government Regulation of Risk Management and Insurance

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