Question 1

What type of personal liability coverage is also called a personal catastrophe policy?

Accepted Answer

A) Umbrella policy 
B) Personal property floater 
C) Coinsurance floater 
D) Assigned risk clause 
E) Medical payments coverage 
A) Umbrella policy 
B) Personal property floater 
C) Coinsurance floater 
D) Assigned risk clause 
E) Medical payments coverage

Question 2

Your geographic location is a major factor in determining the ____________ used to calculate your automobile insurance premiums.

Accepted Answer

A) driver classification 
B) assigned risk pool 
C) coverage level 
D) legal responsibilities 
E) rating territory 
A) driver classification 
B) assigned risk pool 
C) coverage level 
D) legal responsibilities 
E) rating territory

Question 3

A home made of wood is more expensive to insure than a comparable brick structure.

Accepted Answer

A) True 
 B)False

Question 4

Another term for liability coverage that protects you from claims if a client holds you responsible for errors or you fail to perform as promised is:

Accepted Answer

A) umbrella policy. 
B) personal property floater. 
C) errors and omissions. 
D) endorsement. 
E) self-insurance. 
A) umbrella policy. 
B) personal property floater. 
C) errors and omissions. 
D) endorsement. 
E) self-insurance.

Question 5

Which statement is not true about no-fault insurance systems?

Accepted Answer

A) They are intended to reduce the time and cost associated with the settlement of automobile injury cases. 
B) The systems vary from state to state. 
C) Some states include property damage in the coverage. 
D) Some states set limits on medical expenses, lost wages, and other claim settlements. 
E) In recent years, all 50 states had some variation of the system. 
A) They are intended to reduce the time and cost associated with the settlement of automobile injury cases. 
B) The systems vary from state to state. 
C) Some states include property damage in the coverage. 
D) Some states set limits on medical expenses, lost wages, and other claim settlements. 
E) In recent years, all 50 states had some variation of the system.

Question 6

Additional personal liability insurance beyond the basic coverage in a homeowner's policy is available with:

Accepted Answer

A) an umbrella policy. 
B) a personal property floater. 
C) an endorsement. 
D) a coinsurance clause. 
E) medical payments coverage 
A) an umbrella policy. 
B) a personal property floater. 
C) an endorsement. 
D) a coinsurance clause. 
E) medical payments coverage

Question 7

Eating a balanced diet and exercising is an example of risk _____.

Accepted Answer

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

Question 8

Most home insurance policies provide coverage for minor accidental injuries on your property under:

Accepted Answer

A) earthquake damage. 
B) flood damage. 
C) an umbrella liability. 
D) personal property floaters. 
E) medical payments coverage. 
A) earthquake damage. 
B) flood damage. 
C) an umbrella liability. 
D) personal property floaters. 
E) medical payments coverage.

Question 9

No-fault insurance systems have always reduced the time and costs involved in settling auto injury claims.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following would be covered by a home insurance policy?

Accepted Answer

A) Hospital expenses for surgery 
B) Injury to animals, birds, or fish 
C) Accidental injury to a coworker on the job 
D) Damage to your roof from hail 
E) Theft of business supplies from your office 
A) Hospital expenses for surgery 
B) Injury to animals, birds, or fish 
C) Accidental injury to a coworker on the job 
D) Damage to your roof from hail 
E) Theft of business supplies from your office

Question 11

Which of the following might qualify Amy Farmer for a premium discount on her automobile insurance?

Accepted Answer

A) Completing a driver's training program 
B) Earning straight A's in college 
C) Installing an alarm system in her car 
D) Participating in a carpool five days a week 
E) Any of these might qualify Amy for a discount. 
A) Completing a driver's training program 
B) Earning straight A's in college 
C) Installing an alarm system in her car 
D) Participating in a carpool five days a week 
E) Any of these might qualify Amy for a discount.

Question 12

Henry Edwards was injured in an accident caused by another driver who did not have insurance.Henry's medical expenses would be covered by:

Accepted Answer

A) medical payments. 
B) collision. 
C) bodily injury liability. 
D) uninsured motorists protection. 
E) no-fault coverage. 
A) medical payments. 
B) collision. 
C) bodily injury liability. 
D) uninsured motorists protection. 
E) no-fault coverage.

Question 13

Peter Jacobs has set aside $5,000 in case he has an accident in his 1999 Honda Civic.He does not have collision insurance on this car.How is Peter 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 14

If a homeowner leaves toys on stairs that results in injury to a delivery person,this may be ruled as:

Accepted Answer

A) vicarious liability. 
B) negligence. 
C) assigned risk. 
D) umbrella coverage. 
E) coinsurance. 
A) vicarious liability. 
B) negligence. 
C) assigned risk. 
D) umbrella coverage. 
E) coinsurance.

Question 15

____________ protects you against financial loss when your car damages other vehicles,street signs,or buildings.

Accepted Answer

A) Collision 
B) Comprehensive physical damage 
C) Property damage liability 
D) No-fault insurance 
E) Assigned risk coverage 
A) Collision 
B) Comprehensive physical damage 
C) Property damage liability 
D) No-fault insurance 
E) Assigned risk coverage

Question 16

Which of the following is an insurable risk?

Accepted Answer

A) Purposeful injury to another 
B) Quitting your job because you dislike it 
C) Professional misconduct 
D) Starting a small business 
E) Gambling 
A) Purposeful injury to another 
B) Quitting your job because you dislike it 
C) Professional misconduct 
D) Starting a small business 
E) Gambling

Question 17

____________ provides coverage for the risk of financial loss due to legal expenses,medical expenses,lost wages,and other expenses associated with injuries caused by an automobile accident for which you were responsible.

Accepted Answer

A) Medical payment 
B) Bodily injury liability 
C) Uninsured motorists protection 
D) No-fault insurance 
E) Comprehensive insurance 
A) Medical payment 
B) Bodily injury liability 
C) Uninsured motorists protection 
D) No-fault insurance 
E) Comprehensive insurance

Question 18

Property damage liability coverage would pay for damage to another vehicle for which you were at fault.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not something you should do when you are involved in an automobile accident?

Accepted Answer

A) Stop your vehicle 
B) Turn off the engine 
C) Seek medical assistance for anyone with injuries 
D) Discuss the accident with anyone around, making sure to admit liability if the accident was your fault 
E) Obtain names and contact information of others in the accident and witnesses 
A) Stop your vehicle 
B) Turn off the engine 
C) Seek medical assistance for anyone with injuries 
D) Discuss the accident with anyone around, making sure to admit liability if the accident was your fault 
E) Obtain names and contact information of others in the accident and witnesses

Question 20

The driver classification category is based on automobile style,model,and value of the vehicle.

Accepted Answer

A) True 
 B)False

What type of personal liability coverage is also called a personal catastrophe policy?

Your geographic location is a major factor in determining the ____________ used to calculate your automobile insurance premiums.

A home made of wood is more expensive to insure than a comparable brick structure.

Another term for liability coverage that protects you from claims if a client holds you responsible for errors or you fail to perform as promised is:

Which statement is not true about no-fault insurance systems?

Additional personal liability insurance beyond the basic coverage in a homeowner's policy is available with:

Eating a balanced diet and exercising is an example of risk _____.

Most home insurance policies provide coverage for minor accidental injuries on your property under:

No-fault insurance systems have always reduced the time and costs involved in settling auto injury claims.

Which of the following would be covered by a home insurance policy?

Which of the following might qualify Amy Farmer for a premium discount on her automobile insurance?

Henry Edwards was injured in an accident caused by another driver who did not have insurance.Henry's medical expenses would be covered by:

Peter Jacobs has set aside $5,000 in case he has an accident in his 1999 Honda Civic.He does not have collision insurance on this car.How is Peter managing his risk?

If a homeowner leaves toys on stairs that results in injury to a delivery person,this may be ruled as:

____________ protects you against financial loss when your car damages other vehicles,street signs,or buildings.

Which of the following is an insurable risk?

____________ provides coverage for the risk of financial loss due to legal expenses,medical expenses,lost wages,and other expenses associated with injuries caused by an automobile accident for which you were responsible.

Property damage liability coverage would pay for damage to another vehicle for which you were at fault.

Which of the following is not something you should do when you are involved in an automobile accident?

The driver classification category is based on automobile style,model,and value of the vehicle.

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 type of personal liability coverage is also called a personal catastrophe policy?

Your geographic location is a major factor in determining the ____________ used to calculate your automobile insurance premiums.

A home made of wood is more expensive to insure than a comparable brick structure.

Another term for liability coverage that protects you from claims if a client holds you responsible for errors or you fail to perform as promised is:

Which statement is not true about no-fault insurance systems?

Additional personal liability insurance beyond the basic coverage in a homeowner's policy is available with:

Eating a balanced diet and exercising is an example of risk _____.

Most home insurance policies provide coverage for minor accidental injuries on your property under:

No-fault insurance systems have always reduced the time and costs involved in settling auto injury claims.

Which of the following would be covered by a home insurance policy?

Which of the following might qualify Amy Farmer for a premium discount on her automobile insurance?

Henry Edwards was injured in an accident caused by another driver who did not have insurance.Henry's medical expenses would be covered by:

Peter Jacobs has set aside $5,000 in case he has an accident in his 1999 Honda Civic.He does not have collision insurance on this car.How is Peter managing his risk?

If a homeowner leaves toys on stairs that results in injury to a delivery person,this may be ruled as:

____________ protects you against financial loss when your car damages other vehicles,street signs,or buildings.

Which of the following is an insurable risk?

____________ provides coverage for the risk of financial loss due to legal expenses,medical expenses,lost wages,and other expenses associated with injuries caused by an automobile accident for which you were responsible.

Property damage liability coverage would pay for damage to another vehicle for which you were at fault.

Which of the following is not something you should do when you are involved in an automobile accident?

The driver classification category is based on automobile style,model,and value of the vehicle.

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