Question 1

The purpose of insurance is to help protect you and your family against possible financial loss..

Accepted Answer

A) True 
 B)False  True

Question 2

The comprehensive form (HO-5)of homeowner's insurance includes coverage for damage due to floods.

Accepted Answer

A) True 
 B)False  False

Question 3

What is the #1 natural disaster in the United States?

Accepted Answer

A) Earthquakes 
B) Lightning strikes 
C) Floods 
D) Fires 
E) Thunderstorms 
A) Earthquakes 
B) Lightning strikes 
C) Floods 
D) Fires 
E) Thunderstorms C

Question 4

Homeowner's insurance refers to coverage also available to condominium owners.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following would not be considered personal property under a typical homeowner's insurance policy?

Accepted Answer

A) Furniture 
B) Firearms 
C) House and other structures 
D) Jewelry 
E) A silverware set 
A) Furniture 
B) Firearms 
C) House and other structures 
D) Jewelry 
E) A silverware set

Question 6

The additional living expenses component of a homeowner's insurance policy is designed to:

Accepted Answer

A) pay for temporary housing while your home is repaired. 
B) cover damage to property while away from home. 
C) reimburse a homeowner for damage done by a visitor. 
D) pay for medical expenses of people injured on your property. 
E) pay for repairs caused by fire or other hazards. 
A) pay for temporary housing while your home is repaired. 
B) cover damage to property while away from home. 
C) reimburse a homeowner for damage done by a visitor. 
D) pay for medical expenses of people injured on your property. 
E) pay for repairs caused by fire or other hazards.

Question 7

Your home insurance policy has a $250 deductible.If a small fire causes $600 damage to your home,what amount of the claim would the insurance company pay?

Accepted Answer

A) $250 
B) $350 
C) $450 
D) $600 
E) Not able to determine from this information 
A) $250 
B) $350 
C) $450 
D) $600 
E) Not able to determine from this information

Question 8

____________ coverage would pay for damage to your vehicle caused by an accident when another driver with insurance was legally at fault.

Accepted Answer

A) Property damage liability 
B) Collision 
C) Comprehensive physical damage 
D) Uninsured motorists protection 
E) Assigned risk 
A) Property damage liability 
B) Collision 
C) Comprehensive physical damage 
D) Uninsured motorists protection 
E) Assigned risk

Question 9

Property owners face loss of use risk due to:

Accepted Answer

A) arson. 
B) fire. 
C) wind. 
D) water. 
E) smoke. 
A) arson. 
B) fire. 
C) wind. 
D) water. 
E) smoke.

Question 10

Brett Johnson owns a home in Yukon,Oklahoma.A babysitter he hires breaks her leg when she trips over the dog.What part of his homeowner's insurance would cover this loss?

Accepted Answer

A) House and other structures 
B) Additional living expenses 
C) Personal property 
D) Personal liability 
E) Specialized coverage 
A) House and other structures 
B) Additional living expenses 
C) Personal property 
D) Personal liability 
E) Specialized coverage

Question 11

Which one of the following would be an example of the driver classification category that helps determine insurance rates?

Accepted Answer

A) John Brown has a 2005 Mazda Miata Convertible. 
B) Harry Anderson lives in Boca Raton, Florida. 
C) Charlie Purciful is 22 years old. 
D) Charlotte Webb has her vehicle in a locked garage. 
E) Barry Evans has just moved to Raleigh, North Carolina. 
A) John Brown has a 2005 Mazda Miata Convertible. 
B) Harry Anderson lives in Boca Raton, Florida. 
C) Charlie Purciful is 22 years old. 
D) Charlotte Webb has her vehicle in a locked garage. 
E) Barry Evans has just moved to Raleigh, North Carolina.

Question 12

David Bowers must show a card from his automobile insurance company when he registers his car in the state of Oklahoma each year to show financial responsibility.Which of the following types of laws is the reason he must show this card each year?

Accepted Answer

A) Financial responsibility laws 
B) Lemon laws 
C) Truth in Lending Law 
D) Equal Opportunity Law 
E) Fiscal responsibility laws 
A) Financial responsibility laws 
B) Lemon laws 
C) Truth in Lending Law 
D) Equal Opportunity Law 
E) Fiscal responsibility laws

Question 13

Tara Guest owns a home in Edmond,Oklahoma.She is worried about a tornado causing damage to her home.The tornado is an example of a:

Accepted Answer

A) peril. 
B) hazard. 
C) risk. 
D) premium. 
E) liability. 
A) peril. 
B) hazard. 
C) risk. 
D) premium. 
E) liability.

Question 14

Thad Joslin was judged at fault in an automobile accident.Three others were awarded damages of $150,000,$75,000,and $75,000.Thad has 100/300 bodily injury liability coverage.What amount,if any,would not be covered by his insurance?

Accepted Answer

A) $150,000 
B) $100,000 
C) $50,000 
D) $25,000 
E) None.The total amount would be covered by insurance. 
A) $150,000 
B) $100,000 
C) $50,000 
D) $25,000 
E) None.The total amount would be covered by insurance.

Question 15

Which of the following refers to the process of establishing a monetary fund that can be used to cover the cost of a loss?

Accepted Answer

A) Risk reduction 
B) Self-insurance 
C) Risk creation 
D) Risk avoidance 
E) Risk shifting 
A) Risk reduction 
B) Self-insurance 
C) Risk creation 
D) Risk avoidance 
E) Risk shifting

Question 16

Comprehensive coverage would cover financial losses due to:

Accepted Answer

A) injuries caused by a driver without insurance. 
B) damage to your car in an accident for which you were at fault. 
C) damage to your car caused by wind or hail. 
D) legal action against you for an accident. 
E) damage to a neighbor's tree caused by your car. 
A) injuries caused by a driver without insurance. 
B) damage to your car in an accident for which you were at fault. 
C) damage to your car caused by wind or hail. 
D) legal action against you for an accident. 
E) damage to a neighbor's tree caused by your car.

Question 17

The purpose of an assigned risk pool is to assist people with poor driving records in obtaining automobile insurance coverage.

Accepted Answer

A) True 
 B)False

Question 18

Which one of the following refers to a category based on the driver's age,sex,marital status,and driving habits that is used to set automobile insurance premiums?

Accepted Answer

A) Rating territory 
B) Assigned risk pool 
C) No-fault system 
D) Driver classification 
E) Rating tiers 
A) Rating territory 
B) Assigned risk pool 
C) No-fault system 
D) Driver classification 
E) Rating tiers

Question 19

George and Dr.Martha Cooper rent a condominium in an area known for litigious residents and high cost judgments.George has an extensive stamp collection and Martha has expensive photographic equipment.What kind of insurance would you recommend for a couple in their living situation?

Accepted Answer

They should have a renter's policy for b

Question 20

Which one of the following coverages would pay for health care for friends who were injured in your automobile?

Accepted Answer

A) Medical payments 
B) Bodily injury liability 
C) Collision 
D) Uninsured coverage 
E) Underinsured coverage 
A) Medical payments 
B) Bodily injury liability 
C) Collision 
D) Uninsured coverage 
E) Underinsured coverage

The purpose of insurance is to help protect you and your family against possible financial loss..

The comprehensive form (HO-5)of homeowner's insurance includes coverage for damage due to floods.

What is the #1 natural disaster in the United States?

Homeowner's insurance refers to coverage also available to condominium owners.

Which of the following would not be considered personal property under a typical homeowner's insurance policy?

The additional living expenses component of a homeowner's insurance policy is designed to:

Your home insurance policy has a $250 deductible.If a small fire causes $600 damage to your home,what amount of the claim would the insurance company pay?

____________ coverage would pay for damage to your vehicle caused by an accident when another driver with insurance was legally at fault.

Property owners face loss of use risk due to:

Brett Johnson owns a home in Yukon,Oklahoma.A babysitter he hires breaks her leg when she trips over the dog.What part of his homeowner's insurance would cover this loss?

Which one of the following would be an example of the driver classification category that helps determine insurance rates?

David Bowers must show a card from his automobile insurance company when he registers his car in the state of Oklahoma each year to show financial responsibility.Which of the following types of laws is the reason he must show this card each year?

Tara Guest owns a home in Edmond,Oklahoma.She is worried about a tornado causing damage to her home.The tornado is an example of a:

Thad Joslin was judged at fault in an automobile accident.Three others were awarded damages of $150,000,$75,000,and $75,000.Thad has 100/300 bodily injury liability coverage.What amount,if any,would not be covered by his insurance?

Which of the following refers to the process of establishing a monetary fund that can be used to cover the cost of a loss?

Comprehensive coverage would cover financial losses due to:

The purpose of an assigned risk pool is to assist people with poor driving records in obtaining automobile insurance coverage.

Which one of the following refers to a category based on the driver's age,sex,marital status,and driving habits that is used to set automobile insurance premiums?

George and Dr.Martha Cooper rent a condominium in an area known for litigious residents and high cost judgments.George has an extensive stamp collection and Martha has expensive photographic equipment.What kind of insurance would you recommend for a couple in their living situation?

Which one of the following coverages would pay for health care for friends who were injured in your automobile?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stock

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters

Exam 10: Property and Motor Vehicle Insurance

The purpose of insurance is to help protect you and your family against possible financial loss..

The comprehensive form (HO-5)of homeowner's insurance includes coverage for damage due to floods.

What is the #1 natural disaster in the United States?

Homeowner's insurance refers to coverage also available to condominium owners.

Which of the following would not be considered personal property under a typical homeowner's insurance policy?

The additional living expenses component of a homeowner's insurance policy is designed to:

Your home insurance policy has a $250 deductible.If a small fire causes $600 damage to your home,what amount of the claim would the insurance company pay?

____________ coverage would pay for damage to your vehicle caused by an accident when another driver with insurance was legally at fault.

Property owners face loss of use risk due to:

Brett Johnson owns a home in Yukon,Oklahoma.A babysitter he hires breaks her leg when she trips over the dog.What part of his homeowner's insurance would cover this loss?

Which one of the following would be an example of the driver classification category that helps determine insurance rates?

David Bowers must show a card from his automobile insurance company when he registers his car in the state of Oklahoma each year to show financial responsibility.Which of the following types of laws is the reason he must show this card each year?

Tara Guest owns a home in Edmond,Oklahoma.She is worried about a tornado causing damage to her home.The tornado is an example of a:

Thad Joslin was judged at fault in an automobile accident.Three others were awarded damages of $150,000,$75,000,and $75,000.Thad has 100/300 bodily injury liability coverage.What amount,if any,would not be covered by his insurance?

Which of the following refers to the process of establishing a monetary fund that can be used to cover the cost of a loss?

Comprehensive coverage would cover financial losses due to:

The purpose of an assigned risk pool is to assist people with poor driving records in obtaining automobile insurance coverage.

Which one of the following refers to a category based on the driver's age,sex,marital status,and driving habits that is used to set automobile insurance premiums?

George and Dr.Martha Cooper rent a condominium in an area known for litigious residents and high cost judgments.George has an extensive stamp collection and Martha has expensive photographic equipment.What kind of insurance would you recommend for a couple in their living situation?

Which one of the following coverages would pay for health care for friends who were injured in your automobile?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stock

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters