Question 1

Which one of the following would be an example of a rating territory that helps determine insurance rates?

Accepted Answer

A) Paul Carter drives a 2002 Volkswagen Eurovan. 
B) Mary Williams is 73 years old. 
C) Kathy Smith lives in Guthrie, Oklahoma. 
D) Jeremy Davis is married. 
E) John Brown has had three speeding tickets in five years. 
A) Paul Carter drives a 2002 Volkswagen Eurovan. 
B) Mary Williams is 73 years old. 
C) Kathy Smith lives in Guthrie, Oklahoma. 
D) Jeremy Davis is married. 
E) John Brown has had three speeding tickets in five years.

Question 2

Defective house wiring is an example of a:

Accepted Answer

A) hazard. 
B) peril. 
C) risk. 
D) speculation. 
E) planned danger. 
A) hazard. 
B) peril. 
C) risk. 
D) speculation. 
E) planned danger.

Question 3

Wind damage occurs to your car costing $800 to repair.If you have a $100 deductible for collision and full coverage for comprehensive,what portion of the claim will the insurance company pay?

Accepted Answer

A) $100 
B) $200 
C) $500 
D) $700 
E) $800 
A) $100 
B) $200 
C) $500 
D) $700 
E) $800

Question 4

Approximately what percent of people who rent have purchased renter's insurance?

Accepted Answer

A) 10 
B) 20 
C) 40 
D) 60 
E) 75 
A) 10 
B) 20 
C) 40 
D) 60 
E) 75

Question 5

Georgia Owen was in an accident in which her car was totaled.What part of Georgia's automobile insurance would cover the damage to her car?

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 6

Hermione Granger borrowed her best friend's car and was in an accident.She was at fault.The car was totaled.What part of Hermione's automobile insurance policy would cover the damage to her friend's car?

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

Negligence refers to:

Accepted Answer

A) failure to take ordinary or reasonable care. 
B) cancellation of insurance. 
C) property damage. 
D) high risk insurance coverage. 
E) common hazards in our society. 
A) failure to take ordinary or reasonable care. 
B) cancellation of insurance. 
C) property damage. 
D) high risk insurance coverage. 
E) common hazards in our society.

Question 8

What does the term subrogation mean as it relates to motor vehicle property damage coverage?

Accepted Answer

Subrogation is defined as the

Question 9

What type of coverage in a home insurance policy is designed to pay for legal action taken against a homeowner who may be legally responsible for injury or property damage of others?

Accepted Answer

A) Business property 
B) Liability 
C) Floater 
D) Comprehensive 
E) Personal property 
A) Business property 
B) Liability 
C) Floater 
D) Comprehensive 
E) Personal property

Question 10

Risk management is an organized strategy for protecting and conserving assets and people.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a system in which drivers involved in an accident collect medical expenses,lost wages,and related injury costs from their own insurance company?

Accepted Answer

A) Assigned risk pool 
B) Financial responsibility coverage 
C) Comprehensive system 
D) No-fault insurance 
E) Uninsured motorists protection 
A) Assigned risk pool 
B) Financial responsibility coverage 
C) Comprehensive system 
D) No-fault insurance 
E) Uninsured motorists protection

Question 12

Medical payments coverage in an automobile insurance policy pays for the costs of injuries to persons in the driver's vehicle.

Accepted Answer

A) True 
 B)False

Question 13

An assigned risk pool:

Accepted Answer

A) exists in every state. 
B) reduces medical costs associated with auto accidents. 
C) takes unsafe drivers off the road. 
D) reduces auto insurance premiums with state regulation. 
E) offers premium discounts to safe drivers. 
A) exists in every state. 
B) reduces medical costs associated with auto accidents. 
C) takes unsafe drivers off the road. 
D) reduces auto insurance premiums with state regulation. 
E) offers premium discounts to safe drivers.

Question 14

Personal risks are the uncertainties surrounding the loss of income or life due to all except:

Accepted Answer

A) professional misconduct. 
B) premature death. 
C) illness. 
D) disability. 
E) unemployment. 
A) professional misconduct. 
B) premature death. 
C) illness. 
D) disability. 
E) unemployment.

Question 15

Self-insurance is part of:

Accepted Answer

A) risk avoidance. 
B) risk assumption. 
C) risk shifting. 
D) risk reduction. 
E) endorsement. 
A) risk avoidance. 
B) risk assumption. 
C) risk shifting. 
D) risk reduction. 
E) endorsement.

Question 16

The 100 in 100/300/50 refers to:

Accepted Answer

A) property damage liability coverage. 
B) the amount of the deductible. 
C) collision coverage. 
D) the total coverage for an accident. 
E) the limit for bodily injury claims that can be paid to one person. 
A) property damage liability coverage. 
B) the amount of the deductible. 
C) collision coverage. 
D) the total coverage for an accident. 
E) the limit for bodily injury claims that can be paid to one person.

Question 17

Albert Finney owns a home in Pompano Beach,Florida.His house is broken into and the burglar steals his computer,his big screen TV,his stereo equipment,and his toaster.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 18

The 500 in 200/500/50 refers to:

Accepted Answer

A) property damage liability coverage. 
B) the amount of the deductible. 
C) collision coverage. 
D) the total coverage for an accident. 
E) the limit for all bodily injury claims from a single accident. 
A) property damage liability coverage. 
B) the amount of the deductible. 
C) collision coverage. 
D) the total coverage for an accident. 
E) the limit for all bodily injury claims from a single accident.

Question 19

The legal responsibility for the financial cost of another person's losses or injuries is referred to as:

Accepted Answer

A) theft. 
B) robbery. 
C) liability. 
D) assigned risk. 
E) collusion. 
A) theft. 
B) robbery. 
C) liability. 
D) assigned risk. 
E) collusion.

Question 20

Robert Plant pays a premium each month to State Farm Insurance for automobile insurance on his 2012 Dodge Ram pick-up truck.How is Robert managing his risk?

Accepted Answer

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

Which one of the following would be an example of a rating territory that helps determine insurance rates?

Defective house wiring is an example of a:

Wind damage occurs to your car costing $800 to repair.If you have a $100 deductible for collision and full coverage for comprehensive,what portion of the claim will the insurance company pay?

Approximately what percent of people who rent have purchased renter's insurance?

Georgia Owen was in an accident in which her car was totaled.What part of Georgia's automobile insurance would cover the damage to her car?

Hermione Granger borrowed her best friend's car and was in an accident.She was at fault.The car was totaled.What part of Hermione's automobile insurance policy would cover the damage to her friend's car?

Negligence refers to:

What does the term subrogation mean as it relates to motor vehicle property damage coverage?

What type of coverage in a home insurance policy is designed to pay for legal action taken against a homeowner who may be legally responsible for injury or property damage of others?

Risk management is an organized strategy for protecting and conserving assets and people.

Which of the following is a system in which drivers involved in an accident collect medical expenses,lost wages,and related injury costs from their own insurance company?

Medical payments coverage in an automobile insurance policy pays for the costs of injuries to persons in the driver's vehicle.

An assigned risk pool:

Personal risks are the uncertainties surrounding the loss of income or life due to all except:

Self-insurance is part of:

The 100 in 100/300/50 refers to:

Albert Finney owns a home in Pompano Beach,Florida.His house is broken into and the burglar steals his computer,his big screen TV,his stereo equipment,and his toaster.What part of his homeowner's insurance would cover this loss?

The 500 in 200/500/50 refers to:

The legal responsibility for the financial cost of another person's losses or injuries is referred to as:

Robert Plant pays a premium each month to State Farm Insurance for automobile insurance on his 2012 Dodge Ram pick-up truck.How is Robert managing his risk?

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

Which one of the following would be an example of a rating territory that helps determine insurance rates?

Defective house wiring is an example of a:

Wind damage occurs to your car costing $800 to repair.If you have a $100 deductible for collision and full coverage for comprehensive,what portion of the claim will the insurance company pay?

Approximately what percent of people who rent have purchased renter's insurance?

Georgia Owen was in an accident in which her car was totaled.What part of Georgia's automobile insurance would cover the damage to her car?

Hermione Granger borrowed her best friend's car and was in an accident.She was at fault.The car was totaled.What part of Hermione's automobile insurance policy would cover the damage to her friend's car?

Negligence refers to:

What does the term subrogation mean as it relates to motor vehicle property damage coverage?

What type of coverage in a home insurance policy is designed to pay for legal action taken against a homeowner who may be legally responsible for injury or property damage of others?

Risk management is an organized strategy for protecting and conserving assets and people.

Which of the following is a system in which drivers involved in an accident collect medical expenses,lost wages,and related injury costs from their own insurance company?

Medical payments coverage in an automobile insurance policy pays for the costs of injuries to persons in the driver's vehicle.

An assigned risk pool:

Personal risks are the uncertainties surrounding the loss of income or life due to all except:

Self-insurance is part of:

The 100 in 100/300/50 refers to:

Albert Finney owns a home in Pompano Beach,Florida.His house is broken into and the burglar steals his computer,his big screen TV,his stereo equipment,and his toaster.What part of his homeowner's insurance would cover this loss?

The 500 in 200/500/50 refers to:

The legal responsibility for the financial cost of another person's losses or injuries is referred to as:

Robert Plant pays a premium each month to State Farm Insurance for automobile insurance on his 2012 Dodge Ram pick-up truck.How is Robert managing his risk?

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