Question 1

Auto insurance is needed primarily because of

Accepted Answer

A)  potential damage to auto. 
B)  potential liability claims. 
C)  lender's requirements. 
D)  state law. 
E)  federal requirements. 
A)  potential damage to auto. 
B)  potential liability claims. 
C)  lender's requirements. 
D)  state law. 
E)  federal requirements.

Question 2

Covered liability perils do not include claims for libel,slander,or character defamation.

Accepted Answer

A) True 
 B)False

Question 3

The automobile liability insurance policy covers the insured and residents of his/her household when driving an owned automobile.

Accepted Answer

A) True 
 B)False

Question 4

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Medical payments coverage [would | would not] pay for the medical bills of passengers in your car who are not related to you.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 5

A liability suit could result when

Accepted Answer

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

Question 6

The principle of ____ states that an insured should not be compensated by an insurance company in an amount exceeding the economic loss.

Accepted Answer

A)  subrogation 
B)  insurable interest 
C)  coinsurance 
D)  indemnity 
E)  none of these 
A)  subrogation 
B)  insurable interest 
C)  coinsurance 
D)  indemnity 
E)  none of these

Question 7

Getting married will lower your auto insurance premiums.

Accepted Answer

A) True 
 B)False

Question 8

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Decreasing the amount of deductibles will [increase | decrease] your insurance premiums.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 9

Antiques,collections,and boats are adequately protected under a standard homeowner's policy.

Accepted Answer

A) True 
 B)False

Question 10

Section I of a homeowner's insurance policy covers medical payments.

Accepted Answer

A) True 
 B)False

Question 11

Homeowners' insurance premiums are determined by

Accepted Answer

A)  policy limits. 
B)  perils covered. 
C)  deductibles chosen. 
D)  all of these. 
E)  none of these. 
A)  policy limits. 
B)  perils covered. 
C)  deductibles chosen. 
D)  all of these. 
E)  none of these.

Question 12

Which Homeowners' policy is best suited for a resident of a rented apartment to cover that person's personal property?

Accepted Answer

A)  HO-3 
B)  HO-4 
C)  HO-5 
D)  HO-8 
E)  A Homeowners' policy will not apply since the real estate involved is not owned by the insured. 
A)  HO-3 
B)  HO-4 
C)  HO-5 
D)  HO-8 
E)  A Homeowners' policy will not apply since the real estate involved is not owned by the insured.

Question 13

State financial responsibility laws require only auto liability insurance.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following losses is most likely to be covered under your auto liability insurance?

Accepted Answer

A)  a legal bill incurred by your insurer defending you from a claim related to an accident caused by your negligence. 
B)  a medical bill for your injuries related to an accident that you caused. 
C)  a medical bill for injuries to a passenger in your car arising from an accident in which you were not at fault. 
D)  an auto shop bill for repairs of a car you own due to an accident caused by your negligence. 
E)  an auto repair bill for repairs to the car of a driver who negligently caused an accident with you. 
A)  a legal bill incurred by your insurer defending you from a claim related to an accident caused by your negligence. 
B)  a medical bill for your injuries related to an accident that you caused. 
C)  a medical bill for injuries to a passenger in your car arising from an accident in which you were not at fault. 
D)  an auto shop bill for repairs of a car you own due to an accident caused by your negligence. 
E)  an auto repair bill for repairs to the car of a driver who negligently caused an accident with you.

Question 15

Earthquakes are covered under most homeowners policies.

Accepted Answer

A) True 
 B)False

Question 16

An HO-1 policy lists more perils for which you are insured than an HO-3 does.

Accepted Answer

A) True 
 B)False

Question 17

For an extra premium,the HO-3 homeowners policy pays based on replacement cost for

Accepted Answer

A)  the house. 
B)  contents. 
C)  both the house and contents. 
D)  cars. 
E)  none of these. 
A)  the house. 
B)  contents. 
C)  both the house and contents. 
D)  cars. 
E)  none of these.

Question 18

Like standard homeowners' policies,a renters' policy liability coverage includes coverage away from home.

Accepted Answer

A) True 
 B)False

Question 19

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Negligent acts must be [intentional | unintentional] in order to be insured.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 20

Property insurance is meant to protect property owners from two basic types of exposures,physical loss of property and loss through depreciation.

Accepted Answer

A) True 
 B)False

Auto insurance is needed primarily because of

Covered liability perils do not include claims for libel,slander,or character defamation.

The automobile liability insurance policy covers the insured and residents of his/her household when driving an owned automobile.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Medical payments coverage [would | would not] pay for the medical bills of passengers in your car who are not related to you.

A liability suit could result when

The principle of ____ states that an insured should not be compensated by an insurance company in an amount exceeding the economic loss.

Getting married will lower your auto insurance premiums.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Decreasing the amount of deductibles will [increase | decrease] your insurance premiums.

Antiques,collections,and boats are adequately protected under a standard homeowner's policy.

Section I of a homeowner's insurance policy covers medical payments.

Homeowners' insurance premiums are determined by

Which Homeowners' policy is best suited for a resident of a rented apartment to cover that person's personal property?

State financial responsibility laws require only auto liability insurance.

Which of the following losses is most likely to be covered under your auto liability insurance?

Earthquakes are covered under most homeowners policies.

An HO-1 policy lists more perils for which you are insured than an HO-3 does.

For an extra premium,the HO-3 homeowners policy pays based on replacement cost for

Like standard homeowners' policies,a renters' policy liability coverage includes coverage away from home.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Negligent acts must be [intentional | unintentional] in order to be insured.

Property insurance is meant to protect property owners from two basic types of exposures,physical loss of property and loss through depreciation.

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

Planning for Retirement

Preserving Your Estate

Filters

Exam 10: Protecting Your Property

Auto insurance is needed primarily because of

Covered liability perils do not include claims for libel,slander,or character defamation.

The automobile liability insurance policy covers the insured and residents of his/her household when driving an owned automobile.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Medical payments coverage [would | would not] pay for the medical bills of passengers in your car who are not related to you.

A liability suit could result when

The principle of ____ states that an insured should not be compensated by an insurance company in an amount exceeding the economic loss.

Getting married will lower your auto insurance premiums.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Decreasing the amount of deductibles will [increase | decrease] your insurance premiums.

Antiques,collections,and boats are adequately protected under a standard homeowner's policy.

Section I of a homeowner's insurance policy covers medical payments.

Homeowners' insurance premiums are determined by

Which Homeowners' policy is best suited for a resident of a rented apartment to cover that person's personal property?

State financial responsibility laws require only auto liability insurance.

Which of the following losses is most likely to be covered under your auto liability insurance?

Earthquakes are covered under most homeowners policies.

An HO-1 policy lists more perils for which you are insured than an HO-3 does.

For an extra premium,the HO-3 homeowners policy pays based on replacement cost for

Like standard homeowners' policies,a renters' policy liability coverage includes coverage away from home.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Negligent acts must be [intentional | unintentional] in order to be insured.

Property insurance is meant to protect property owners from two basic types of exposures,physical loss of property and loss through depreciation.

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

Planning for Retirement

Preserving Your Estate

Filters