Question 1

What coverages are commonly included in a homeowner's insurance policy?

Accepted Answer

Most home insurance policies include cov

Question 2

What do automobile insurance companies use GPS technology for?

Accepted Answer

GPS or global positioning systems and ot

Question 3

Wearing a seat belt in an automobile to protect yourself against the risk ofinjury in an automobile accident is an example of risk _____.

Accepted Answer

A) reduction 
B) acceptance 
C) pooling 
D) shifting 
E) avoidance 
A) reduction 
B) acceptance 
C) pooling 
D) shifting 
E) avoidance

Question 4

A system that requires each insurance company operating in a state to provide coverage to individuals who may have had many expensive claims is referred to as:

Accepted Answer

A) no-fault insurance. 
B) an assigned risk pool. 
C) premium discounts. 
D) equal opportunity insurance. 
E) comprehensive coverage. 
A) no-fault insurance. 
B) an assigned risk pool. 
C) premium discounts. 
D) equal opportunity insurance. 
E) comprehensive coverage.

Question 5

Your home insurance provides for replacement value for personal property losses.A microwave is stolen.It cost $300 two years ago and has an expected life of six years.A comparable microwave costs $400 today.What amount will the insurance company pay?

Accepted Answer

A) $100 
B) $150 
C) $200 
D) $350 
E) $400 
A) $100 
B) $150 
C) $200 
D) $350 
E) $400

Question 6

Evan McWilliams accidentally collided with a car driven by Francis Sullivan.It was Evan's fault and Francis was seriously injured and had to spend the night in the hospital.What part of Evan's automobile insurance policy would cover Francis's injuries?

Accepted Answer

A) Bodily injury liability 
B) Medical payments coverage 
C) Property damage liability 
D) Collision 
E) Comprehensive physical damage 
A) Bodily injury liability 
B) Medical payments coverage 
C) Property damage liability 
D) Collision 
E) Comprehensive physical damage

Question 7

Susan Bize owns a home in Edmond,Oklahoma.She has a coffee maker in the home that has been recalled because it is likely to start fires.The coffee maker is an example of a:

Accepted Answer

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

Question 8

High winds cause damage to trees,shrubs,and plants.This insurance claim would be covered under the ____________ component of homeowner's insurance.

Accepted Answer

A) additional living expenses 
B) personal property 
C) house and other structures 
D) personal liability 
E) specialized coverage 
A) additional living expenses 
B) personal property 
C) house and other structures 
D) personal liability 
E) specialized coverage

Question 9

Homeowners can obtain $10,000 coverage for sewage and drain backup damage for approximately:

Accepted Answer

A) $50 to $80 per year 
B) $80 to $110 per year 
C) $110 to $140 per year 
D) $140 to $170 per year 
E) $170 to $200 per year 
A) $50 to $80 per year 
B) $80 to $110 per year 
C) $110 to $140 per year 
D) $140 to $170 per year 
E) $170 to $200 per year

Question 10

Which of the following is aninsurer that agrees to assume financial responsibility for losses that may result from an insured risk?

Accepted Answer

A) Financial advisor 
B) Futo manufacturer 
C) Homeowner 
D) Policyholder 
E) Insurance company 
A) Financial advisor 
B) Futo manufacturer 
C) Homeowner 
D) Policyholder 
E) Insurance company

Question 11

An umbrella policy is designed to cover:

Accepted Answer

A) expensive personal property. 
B) additional buildings on your property. 
C) property when traveling away from home. 
D) major personal liability claims. 
E) flood damage. 
A) expensive personal property. 
B) additional buildings on your property. 
C) property when traveling away from home. 
D) major personal liability claims. 
E) flood damage.

Question 12

Peril is defined as:

Accepted Answer

A) the refusal by an insurance company to pay for a loss. 
B) the cause of risk. 
C) the cause of a possible loss. 
D) an uncertainty as to loss. 
E) safety. 
A) the refusal by an insurance company to pay for a loss. 
B) the cause of risk. 
C) the cause of a possible loss. 
D) an uncertainty as to loss. 
E) safety.

Question 13

A friend wants to understand what affects the cost of auto insurance.Explain the main factors used to determine the automobile insurance premiums a person pays.

Accepted Answer

The main factors that influence the amou

Question 14

Replacement value for settling property insurance claims is less costly than the actual cash value method.

Accepted Answer

A) True 
 B)False

Question 15

The uncertainties of direct and indirect losses to personal or real property due to fire,wind,accidents,theft,and other hazards are called ____________ risks.

Accepted Answer

A) personal 
B) business 
C) property 
D) liability 
E) speculative 
A) personal 
B) business 
C) property 
D) liability 
E) speculative

Question 16

Kevin Brown rides his bicycle to work so that he does not have to worry about getting in a car accident.How is Kevin managing his risk?

Accepted Answer

A) Avoidance 
B) Reduction 
C) Assumption 
D) Shifting 
E) Creation 
A) Avoidance 
B) Reduction 
C) Assumption 
D) Shifting 
E) Creation

Question 17

The 25 in 50/100/25 refers to ____________ coverage.

Accepted Answer

A) collision 
B) bodily injury liability 
C) comprehensive physical damage 
D) medical payments 
E) property damage liability 
A) collision 
B) bodily injury liability 
C) comprehensive physical damage 
D) medical payments 
E) property damage liability

Question 18

Personal risks,property risks,and liability risks are types of ________ risk.

Accepted Answer

A) speculative 
B) avoided 
C) assumed 
D) pure 
E) reduced 
A) speculative 
B) avoided 
C) assumed 
D) pure 
E) reduced

Question 19

Most insurance policies include deductibles,which are a combination of risk assumption and:

Accepted Answer

A) risk avoidance. 
B) risk reduction. 
C) risk shifting. 
D) risk creation. 
E) risk assessment 
A) risk avoidance. 
B) risk reduction. 
C) risk shifting. 
D) risk creation. 
E) risk assessment

Question 20

Georgette Valentine has expensive photography equipment for use in her hobby.Which one of the following types of coverage would pay for damage or theft of this equipment?

Accepted Answer

A) Umbrella policy 
B) Personal liability 
C) Additional living expense coverage 
D) Personal property floater 
E) Coinsurance floater 
A) Umbrella policy 
B) Personal liability 
C) Additional living expense coverage 
D) Personal property floater 
E) Coinsurance floater

What coverages are commonly included in a homeowner's insurance policy?

What do automobile insurance companies use GPS technology for?

Wearing a seat belt in an automobile to protect yourself against the risk ofinjury in an automobile accident is an example of risk _____.

A system that requires each insurance company operating in a state to provide coverage to individuals who may have had many expensive claims is referred to as:

Your home insurance provides for replacement value for personal property losses.A microwave is stolen.It cost $300 two years ago and has an expected life of six years.A comparable microwave costs $400 today.What amount will the insurance company pay?

Evan McWilliams accidentally collided with a car driven by Francis Sullivan.It was Evan's fault and Francis was seriously injured and had to spend the night in the hospital.What part of Evan's automobile insurance policy would cover Francis's injuries?

Susan Bize owns a home in Edmond,Oklahoma.She has a coffee maker in the home that has been recalled because it is likely to start fires.The coffee maker is an example of a:

High winds cause damage to trees,shrubs,and plants.This insurance claim would be covered under the ____________ component of homeowner's insurance.

Homeowners can obtain $10,000 coverage for sewage and drain backup damage for approximately:

Which of the following is aninsurer that agrees to assume financial responsibility for losses that may result from an insured risk?

An umbrella policy is designed to cover:

Peril is defined as:

A friend wants to understand what affects the cost of auto insurance.Explain the main factors used to determine the automobile insurance premiums a person pays.

Replacement value for settling property insurance claims is less costly than the actual cash value method.

The uncertainties of direct and indirect losses to personal or real property due to fire,wind,accidents,theft,and other hazards are called ____________ risks.

Kevin Brown rides his bicycle to work so that he does not have to worry about getting in a car accident.How is Kevin managing his risk?

The 25 in 50/100/25 refers to ____________ coverage.

Personal risks,property risks,and liability risks are types of ________ risk.

Most insurance policies include deductibles,which are a combination of risk assumption and:

Georgette Valentine has expensive photography equipment for use in her hobby.Which one of the following types of coverage would pay for damage or theft of this equipment?

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

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Exam 10: Property and Motor Vehicle Insurance

What coverages are commonly included in a homeowner's insurance policy?

What do automobile insurance companies use GPS technology for?

Wearing a seat belt in an automobile to protect yourself against the risk ofinjury in an automobile accident is an example of risk _____.

A system that requires each insurance company operating in a state to provide coverage to individuals who may have had many expensive claims is referred to as:

Your home insurance provides for replacement value for personal property losses.A microwave is stolen.It cost $300 two years ago and has an expected life of six years.A comparable microwave costs $400 today.What amount will the insurance company pay?

Evan McWilliams accidentally collided with a car driven by Francis Sullivan.It was Evan's fault and Francis was seriously injured and had to spend the night in the hospital.What part of Evan's automobile insurance policy would cover Francis's injuries?

Susan Bize owns a home in Edmond,Oklahoma.She has a coffee maker in the home that has been recalled because it is likely to start fires.The coffee maker is an example of a:

High winds cause damage to trees,shrubs,and plants.This insurance claim would be covered under the ____________ component of homeowner's insurance.

Homeowners can obtain $10,000 coverage for sewage and drain backup damage for approximately:

Which of the following is aninsurer that agrees to assume financial responsibility for losses that may result from an insured risk?

An umbrella policy is designed to cover:

Peril is defined as:

A friend wants to understand what affects the cost of auto insurance.Explain the main factors used to determine the automobile insurance premiums a person pays.

Replacement value for settling property insurance claims is less costly than the actual cash value method.

The uncertainties of direct and indirect losses to personal or real property due to fire,wind,accidents,theft,and other hazards are called ____________ risks.

Kevin Brown rides his bicycle to work so that he does not have to worry about getting in a car accident.How is Kevin managing his risk?

The 25 in 50/100/25 refers to ____________ coverage.

Personal risks,property risks,and liability risks are types of ________ risk.

Most insurance policies include deductibles,which are a combination of risk assumption and:

Georgette Valentine has expensive photography equipment for use in her hobby.Which one of the following types of coverage would pay for damage or theft of this equipment?

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

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