Question 1

A captive agent typically represents two to ten different insurance companies.

Accepted Answer

A) True 
 B)False

Question 2

Insurance policies provide the opportunity for claims arbitration to settle any disputed liability claims.

Accepted Answer

A) True 
 B)False

Question 3

Uninsured motorists protection usually provides protection to the insured's car if a hit-and-run incident occurs.

Accepted Answer

A) True 
 B)False

Question 4

A higher home insurance cost may result from:

Accepted Answer

A) a low crime rate in the area of the insured's residence. 
B) a low credit score of the insured. 
C) fewer insurance claims from the area of the insured's residence. 
D) the lack of a swimming pool at the insured's residence. 
E) fewer captive insurance agents hired by the insurance company. 
A) a low crime rate in the area of the insured's residence. 
B) a low credit score of the insured. 
C) fewer insurance claims from the area of the insured's residence. 
D) the lack of a swimming pool at the insured's residence. 
E) fewer captive insurance agents hired by the insurance company.

Question 5

When insuring property,people need to consider not only replacing and restoring the actual property in the event of a loss,but also __________. ​

Accepted Answer

A) the liability arising from the insured's responsibility for property loss 
B) the construction cost of the property 
C) the home equity in the property 
D) the excess compensation claim for loss to the property 
A) the liability arising from the insured's responsibility for property loss 
B) the construction cost of the property 
C) the home equity in the property 
D) the excess compensation claim for loss to the property

Question 6

An increase in the amount of the deductible will __________. ​

Accepted Answer

A) increase the insurance coverage 
B) decrease the replacement cost of the insured property 
C) decrease the amount of insurance premiums 
D) increase the personal property floater coverage for the insured property 
A) increase the insurance coverage 
B) decrease the replacement cost of the insured property 
C) decrease the amount of insurance premiums 
D) increase the personal property floater coverage for the insured property

Question 7

A factor that is likely to have the greatest effect on the cost of automobile insurance is the __________. ​

Accepted Answer

A) distance covered by the insured car 
B) lessee of the insured car 
C) owner's academic grades 
D) owner's driving record 
A) distance covered by the insured car 
B) lessee of the insured car 
C) owner's academic grades 
D) owner's driving record

Question 8

Which of the following homeowners' policies provides coverage for damage caused by electrical current?

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 9

Replacement-cost coverage is the reimbursement of:

Accepted Answer

A) the cost of repairing or replacing damaged structures without deducting physical depreciation. 
B) reasonable living expenses while the insured's house is being repaired. 
C) the cost of damages caused by perils other than those mentioned in the policy. 
D) the cost of defending the insured. 
E) the increase in the deductible to reduce the amount of the insurance premium. 
A) the cost of repairing or replacing damaged structures without deducting physical depreciation. 
B) reasonable living expenses while the insured's house is being repaired. 
C) the cost of damages caused by perils other than those mentioned in the policy. 
D) the cost of defending the insured. 
E) the increase in the deductible to reduce the amount of the insurance premium.

Question 10

An insurance company assigns more complex loss cases to a __________. ​

Accepted Answer

A) captive insurance agent 
B) claims adjustor 
C) Chartered Property and Casualty Underwriter 
D) Certified Insurance Counselor 
A) captive insurance agent 
B) claims adjustor 
C) Chartered Property and Casualty Underwriter 
D) Certified Insurance Counselor

Question 11

The premiums for homeowners' insurance policies are based on the size of the deductible,any policy limits,and the standard coverage.

Accepted Answer

A) True 
 B)False

Question 12

A personal property floater and a personal liability umbrella policy offer similar coverage.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following homeowners' policies is best suited to a renter of an apartment?

Accepted Answer

A) HO-1 
B) HO-2 
C) HO-3 
D) HO-4 
E) HO-8 
A) HO-1 
B) HO-2 
C) HO-3 
D) HO-4 
E) HO-8

Question 14

A homeowner's policy does not provide protection for:

Accepted Answer

A) the personal property of family members at home. 
B) the personal property of family members who are in college. 
C) a business unit's property valued below $2,500 while it is on the insured premises. 
D) the personal property of tenants. 
E) the personal property of family members who are traveling. 
A) the personal property of family members at home. 
B) the personal property of family members who are in college. 
C) a business unit's property valued below $2,500 while it is on the insured premises. 
D) the personal property of tenants. 
E) the personal property of family members who are traveling.

Question 15

Negligence occurs when someone:

Accepted Answer

A) is not insured. 
B) fails to act as an insured. 
C) fails to act in a reasonable manner. 
D) admits an error. 
E) is more than 18 years of age. 
A) is not insured. 
B) fails to act as an insured. 
C) fails to act in a reasonable manner. 
D) admits an error. 
E) is more than 18 years of age.

Question 16

A personal liability umbrella policy is designed to __________. ​

Accepted Answer

A) supplement homeowner's insurance coverage 
B) establish a subsidized flood insurance program 
C) replace homeowner's insurance coverage 
D) subsidize the health insurance coverage 
A) supplement homeowner's insurance coverage 
B) establish a subsidized flood insurance program 
C) replace homeowner's insurance coverage 
D) subsidize the health insurance coverage

Question 17

A liability suit could result against you if:

Accepted Answer

A) lightning strikes your home. 
B) your son falls down the stairs of your home. 
C) your automobile is stolen. 
D) your dog bites your neighbor. 
E) smoke from the fireplace fills your house. 
A) lightning strikes your home. 
B) your son falls down the stairs of your home. 
C) your automobile is stolen. 
D) your dog bites your neighbor. 
E) smoke from the fireplace fills your house.

Question 18

The liability coverage under a personal automobile policy is provided to:

Accepted Answer

A) the insured for damage. 
B) the family members of the insured. 
C) the holder of an auto loan. 
D) the lawyer needed to defend criminal charges. 
E) the non-family members involved in the accident. 
A) the insured for damage. 
B) the family members of the insured. 
C) the holder of an auto loan. 
D) the lawyer needed to defend criminal charges. 
E) the non-family members involved in the accident.

Question 19

A personal liability umbrella policy typically includes:

Accepted Answer

A) subsidies for flood insurance established in cooperation with a private insurance agent. 
B) coverage for auto-related liability losses in excess of the limits purchased in the automobile insurance. 
C) coverage for only other types of vehicles such as mobile homes. 
D) the basic health and homeowner's protection needed by most families. 
E) the provision for assessment of liability by the police at the scene of the accident. 
A) subsidies for flood insurance established in cooperation with a private insurance agent. 
B) coverage for auto-related liability losses in excess of the limits purchased in the automobile insurance. 
C) coverage for only other types of vehicles such as mobile homes. 
D) the basic health and homeowner's protection needed by most families. 
E) the provision for assessment of liability by the police at the scene of the accident.

Question 20

A $100,000/$300,000 bodily injury liability automobile policy could pay up to a total of __________ to all injured victims in one accident. ​

Accepted Answer

A) $100,000 
B) $400,000 
C) $300,000 
D) $200,000 
A) $100,000 
B) $400,000 
C) $300,000 
D) $200,000

A captive agent typically represents two to ten different insurance companies.

Insurance policies provide the opportunity for claims arbitration to settle any disputed liability claims.

Uninsured motorists protection usually provides protection to the insured's car if a hit-and-run incident occurs.

A higher home insurance cost may result from:

When insuring property,people need to consider not only replacing and restoring the actual property in the event of a loss,but also __________.

An increase in the amount of the deductible will __________.

A factor that is likely to have the greatest effect on the cost of automobile insurance is the __________.

Which of the following homeowners' policies provides coverage for damage caused by electrical current?

Replacement-cost coverage is the reimbursement of:

An insurance company assigns more complex loss cases to a __________.

The premiums for homeowners' insurance policies are based on the size of the deductible,any policy limits,and the standard coverage.

A personal property floater and a personal liability umbrella policy offer similar coverage.

Which of the following homeowners' policies is best suited to a renter of an apartment?

A homeowner's policy does not provide protection for:

Negligence occurs when someone:

A personal liability umbrella policy is designed to __________.

A liability suit could result against you if:

The liability coverage under a personal automobile policy is provided to:

A personal liability umbrella policy typically includes:

A $100,000/$300,000 bodily injury liability automobile policy could pay up to a total of __________ to all injured victims in one accident.

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

A captive agent typically represents two to ten different insurance companies.

Insurance policies provide the opportunity for claims arbitration to settle any disputed liability claims.

Uninsured motorists protection usually provides protection to the insured's car if a hit-and-run incident occurs.

A higher home insurance cost may result from:

When insuring property,people need to consider not only replacing and restoring the actual property in the event of a loss,but also __________. ​

An increase in the amount of the deductible will __________. ​

A factor that is likely to have the greatest effect on the cost of automobile insurance is the __________. ​

Which of the following homeowners' policies provides coverage for damage caused by electrical current?

Replacement-cost coverage is the reimbursement of:

An insurance company assigns more complex loss cases to a __________. ​

The premiums for homeowners' insurance policies are based on the size of the deductible,any policy limits,and the standard coverage.

A personal property floater and a personal liability umbrella policy offer similar coverage.

Which of the following homeowners' policies is best suited to a renter of an apartment?

A homeowner's policy does not provide protection for:

Negligence occurs when someone:

A personal liability umbrella policy is designed to __________. ​

A liability suit could result against you if:

The liability coverage under a personal automobile policy is provided to:

A personal liability umbrella policy typically includes:

A $100,000/$300,000 bodily injury liability automobile policy could pay up to a total of __________ to all injured victims in one accident. ​

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

When insuring property,people need to consider not only replacing and restoring the actual property in the event of a loss,but also __________.

An increase in the amount of the deductible will __________.

A factor that is likely to have the greatest effect on the cost of automobile insurance is the __________.

An insurance company assigns more complex loss cases to a __________.

A personal liability umbrella policy is designed to __________.

A $100,000/$300,000 bodily injury liability automobile policy could pay up to a total of __________ to all injured victims in one accident.