Question 1

The principle of indemnity will prevent:

Accepted Answer

A) the act of one person from being imputed to another. 
B) an insured from collecting more than what he or she has lost. 
C) a negligent third party from being held liable for damages if the injured party is insured. 
D) a significant amount of loss control activity. 
E) an insurer from ever waiving its right to subrogation. 
A) the act of one person from being imputed to another. 
B) an insured from collecting more than what he or she has lost. 
C) a negligent third party from being held liable for damages if the injured party is insured. 
D) a significant amount of loss control activity. 
E) an insurer from ever waiving its right to subrogation. B

Question 2

The personal property floater:

Accepted Answer

A) provides either blanket or scheduled coverage of items that are not covered adequately in a standard homeowner's policy. 
B) is available to meet the needs of "innocent" victims of accidents who are negligently injured by uninsured,underinsured,or hit-and-run motorists. 
C) is a specialized inland marine policy covering boats and trailers used with boats. 
D) covers against liability caused by the ownership or use of items of personal property. 
E) is an additional amount of insurance equal to a specified percentage of the replacement value of the property. 
A) provides either blanket or scheduled coverage of items that are not covered adequately in a standard homeowner's policy. 
B) is available to meet the needs of "innocent" victims of accidents who are negligently injured by uninsured,underinsured,or hit-and-run motorists. 
C) is a specialized inland marine policy covering boats and trailers used with boats. 
D) covers against liability caused by the ownership or use of items of personal property. 
E) is an additional amount of insurance equal to a specified percentage of the replacement value of the property. A

Question 3

Auto insurance is needed primarily:

Accepted Answer

A) to finance automobile maintenance. 
B) as protection against potential liability claims. 
C) as a part of the homeowner's insurance requirements. 
D) to counter the effects of increasing fuel prices. 
E) to satisfy federal requirements for a lawful citizenship. 
A) to finance automobile maintenance. 
B) as protection against potential liability claims. 
C) as a part of the homeowner's insurance requirements. 
D) to counter the effects of increasing fuel prices. 
E) to satisfy federal requirements for a lawful citizenship. B

Question 4

An insured does not get the right to arbitration when:

Accepted Answer

A) the insurance company denies responsibility for the loss. 
B) the loss is of a relatively small value. 
C) the claim is assigned to a claims adjustor. 
D) the insured leaves the scene of the accident. 
E) the insured has made several claims from the insurance company. 
A) the insurance company denies responsibility for the loss. 
B) the loss is of a relatively small value. 
C) the claim is assigned to a claims adjustor. 
D) the insured leaves the scene of the accident. 
E) the insured has made several claims from the insurance company.

Question 5

The federal government has introduced a subsidized flood insurance program for homeowners and tenants living in designated communities.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following homeowners' policies provides coverage for the damage caused by the accidental discharge of water or steam?

Accepted Answer

A) HO-7 
B) HO-2 
C) HO-8 
D) HO-9 
E) HO-1 
A) HO-7 
B) HO-2 
C) HO-8 
D) HO-9 
E) HO-1

Question 7

A(n)__________ agent represents multiple insurance companies. ​

Accepted Answer

A) captive 
B) business 
C) casualty 
D) independent 
A) captive 
B) business 
C) casualty 
D) independent

Question 8

Suppose you carelessly,but unintentionally,knocked someone down a flight of stairs in your home.You would be covered by your homeowner's insurance.

Accepted Answer

A) True 
 B)False

Question 9

To purchase a personal liability umbrella policy,the insured party must already have __________. ​

Accepted Answer

A) federally subsidized flood insurance coverage 
B) relatively high liability limits on their homeowner's and auto coverage 
C) high levels of personal debt 
D) made several claims with the insurance company 
A) federally subsidized flood insurance coverage 
B) relatively high liability limits on their homeowner's and auto coverage 
C) high levels of personal debt 
D) made several claims with the insurance company

Question 10

Which of the following is true of companies that sell insurance directly to consumers?

Accepted Answer

A) Their insurance agents review the loss claims and file a lawsuit against the negligent party. 
B) They hire only Certified Insurance Counselors as their captive agents. 
C) Their premiums are lower than for companies that sell insurance through agents. 
D) They reimburse a higher amount of insurance claims than the companies that sell insurance through agents. 
E) Their deductibles are lower than the companies that sell insurance through agents. 
A) Their insurance agents review the loss claims and file a lawsuit against the negligent party. 
B) They hire only Certified Insurance Counselors as their captive agents. 
C) Their premiums are lower than for companies that sell insurance through agents. 
D) They reimburse a higher amount of insurance claims than the companies that sell insurance through agents. 
E) Their deductibles are lower than the companies that sell insurance through agents.

Question 11

The __________ is a good homeowner's policy for a condominium owner. ​

Accepted Answer

A) HO-2 
B) HO-3 
C) HO-4 
D) HO-6 
A) HO-2 
B) HO-3 
C) HO-4 
D) HO-6

Question 12

Standard homeowner's policies will not include coverage for damage done by __________. ​

Accepted Answer

A) fire 
B) flood 
C) lightning 
D) wind 
A) fire 
B) flood 
C) lightning 
D) wind

Question 13

Earthquakes are covered under most homeowner's insurance policies.

Accepted Answer

A) True 
 B)False

Question 14

Comprehensive automobile coverage refers to:

Accepted Answer

A) complete coverage including liability,medical payments,and damage to the automobile. 
B) coverage for damage to an insured automobile from perils (with a few exceptions)other than collision. 
C) coverage that adds items of personal property,such as CB radios and telephones,that are ordinarily excluded. 
D) coverage for bodily injuries suffered in an automobile accident. 
E) coverage for damage due to a multi-car collision. 
A) complete coverage including liability,medical payments,and damage to the automobile. 
B) coverage for damage to an insured automobile from perils (with a few exceptions)other than collision. 
C) coverage that adds items of personal property,such as CB radios and telephones,that are ordinarily excluded. 
D) coverage for bodily injuries suffered in an automobile accident. 
E) coverage for damage due to a multi-car collision.

Question 15

Donna,who is single and 30 years old,received several speeding tickets recently and was shocked by the effect they had on her auto insurance.Donna drives a 2002 Pontiac Firebird.She is currently not covered by health insurance,has an emergency fund of $25,000,an income of $100,000 per year,and an investment portfolio of $230,000.She is trying to reduce the price of her auto insurance.Which of the following actions is most likely to help Donna reduce the price of her auto insurance?

Accepted Answer

A) Maintaining her liability limits at current levels 
B) Raising her medical payments coverage 
C) Raising her deductible from $250 to $1,000 
D) Maintaining her collision coverage at current levels 
E) Raising her collision coverage by $10,000 
A) Maintaining her liability limits at current levels 
B) Raising her medical payments coverage 
C) Raising her deductible from $250 to $1,000 
D) Maintaining her collision coverage at current levels 
E) Raising her collision coverage by $10,000

Question 16

Homeowner's co-insurance requires the insured to carry insurance protection equal to the market value of the house.

Accepted Answer

A) True 
 B)False

Question 17

It pays to comparison shop for insurance policies because of the __________. ​

Accepted Answer

A) subsidized deductible options 
B) different educational qualifications of the captive agents 
C) large variations in premiums and services 
D) different legal liabilities of insurance agents 
A) subsidized deductible options 
B) different educational qualifications of the captive agents 
C) large variations in premiums and services 
D) different legal liabilities of insurance agents

Question 18

A house with a replacement value of $110,000 is currently insured for $90,000.The house is damaged in a windstorm,causing a loss of $15,000.The insurance company will pay an amount equal to $15,000 less the deductible.

Accepted Answer

A) True 
 B)False

Question 19

Even though homeowners are eligible for reimbursement on a full replacement-cost basis if they keep their homes insured for at least 80 percent of the amount that it would cost to build them today,__________ can cause the actual amount of coverage to fall below 80 percent. ​

Accepted Answer

A) the replacement cost 
B) inflation 
C) the insurance premium 
D) deductibles 
A) the replacement cost 
B) inflation 
C) the insurance premium 
D) deductibles

Question 20

The best way to buy automobile insurance is through __________. ​

Accepted Answer

A) an insurance agent 
B) a state insurance commission 
C) an auto dealer 
D) a finance company 
A) an insurance agent 
B) a state insurance commission 
C) an auto dealer 
D) a finance company

The principle of indemnity will prevent:

The personal property floater:

Auto insurance is needed primarily:

An insured does not get the right to arbitration when:

The federal government has introduced a subsidized flood insurance program for homeowners and tenants living in designated communities.

Which of the following homeowners' policies provides coverage for the damage caused by the accidental discharge of water or steam?

A(n)__________ agent represents multiple insurance companies.

Suppose you carelessly,but unintentionally,knocked someone down a flight of stairs in your home.You would be covered by your homeowner's insurance.

To purchase a personal liability umbrella policy,the insured party must already have __________.

Which of the following is true of companies that sell insurance directly to consumers?

The __________ is a good homeowner's policy for a condominium owner.

Standard homeowner's policies will not include coverage for damage done by __________.

Earthquakes are covered under most homeowner's insurance policies.

Comprehensive automobile coverage refers to:

Homeowner's co-insurance requires the insured to carry insurance protection equal to the market value of the house.

It pays to comparison shop for insurance policies because of the __________.

A house with a replacement value of $110,000 is currently insured for $90,000.The house is damaged in a windstorm,causing a loss of $15,000.The insurance company will pay an amount equal to $15,000 less the deductible.

Even though homeowners are eligible for reimbursement on a full replacement-cost basis if they keep their homes insured for at least 80 percent of the amount that it would cost to build them today,__________ can cause the actual amount of coverage to fall below 80 percent.

The best way to buy automobile insurance is through __________.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 10: Protecting Your Property

The principle of indemnity will prevent:

The personal property floater:

Auto insurance is needed primarily:

An insured does not get the right to arbitration when:

The federal government has introduced a subsidized flood insurance program for homeowners and tenants living in designated communities.

Which of the following homeowners' policies provides coverage for the damage caused by the accidental discharge of water or steam?

A(n)__________ agent represents multiple insurance companies. ​

Suppose you carelessly,but unintentionally,knocked someone down a flight of stairs in your home.You would be covered by your homeowner's insurance.

To purchase a personal liability umbrella policy,the insured party must already have __________. ​

Which of the following is true of companies that sell insurance directly to consumers?

The __________ is a good homeowner's policy for a condominium owner. ​

Standard homeowner's policies will not include coverage for damage done by __________. ​

Earthquakes are covered under most homeowner's insurance policies.

Comprehensive automobile coverage refers to:

Homeowner's co-insurance requires the insured to carry insurance protection equal to the market value of the house.

It pays to comparison shop for insurance policies because of the __________. ​

A house with a replacement value of $110,000 is currently insured for $90,000.The house is damaged in a windstorm,causing a loss of $15,000.The insurance company will pay an amount equal to $15,000 less the deductible.

Even though homeowners are eligible for reimbursement on a full replacement-cost basis if they keep their homes insured for at least 80 percent of the amount that it would cost to build them today,__________ can cause the actual amount of coverage to fall below 80 percent. ​

The best way to buy automobile insurance is through __________. ​

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

A(n)__________ agent represents multiple insurance companies.

To purchase a personal liability umbrella policy,the insured party must already have __________.

The __________ is a good homeowner's policy for a condominium owner.

Standard homeowner's policies will not include coverage for damage done by __________.

It pays to comparison shop for insurance policies because of the __________.

Even though homeowners are eligible for reimbursement on a full replacement-cost basis if they keep their homes insured for at least 80 percent of the amount that it would cost to build them today,__________ can cause the actual amount of coverage to fall below 80 percent.

The best way to buy automobile insurance is through __________.