Question 1

The principle of indemnity generally limits the amount that the insured may collect to the actual cash value of the property.

Accepted Answer

A) True 
 B)False

Question 2

The Thomson's house burned to the ground! They felt they were adequately covered (see coverage below).Their car (market value $10,000)was in the garage and totally destroyed.How much will the Thompsons be reimbursed for their home?

Accepted Answer

A)  $80,000 
B)  $79,700 
C)  $63,700 
D)  $60,000 
E)  $59,700 
A)  $80,000 
B)  $79,700 
C)  $63,700 
D)  $60,000 
E)  $59,700

Question 3

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The insurance company [will | will not] provide liability coverage if your dog bites the neighbor.

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 4

Your homeowner's policy will pay for damage to the neighbor's property when your 10 year old son throws a rock through her picture window.

Accepted Answer

A) True 
 B)False

Question 5

Jim drove his car into a home and wiped out the car in front of him,the home,and a pedestrian.Jim has auto liability insurance of 25/50/10.He also has medical payments coverage of $1,000 and a $250 deductible on his collision coverage.The following damage resulted:
   How much will Jim's auto insurance coverage pay for this accident? How much will Jim be personally responsible for?

Accepted Answer

The answer of Jim drove his car into a home...

Question 6

Homeowner policy forms are fairly standardized from one company to another.

Accepted Answer

A) True 
 B)False

Question 7

The minimum limit for personal umbrella policies is generally $1,000,000.

Accepted Answer

A) True 
 B)False

Question 8

You just purchased an older home with a market value of $100,000 and a replacement value of $180,000.What HO form would meet your needs?

Accepted Answer

A)  HO-2 
B)  HO-3 
C)  HO-4 
D)  HO-6 
E)  HO-8 
A)  HO-2 
B)  HO-3 
C)  HO-4 
D)  HO-6 
E)  HO-8

Question 9

Comprehensive automobile coverage refers to

Accepted Answer

A)  complete coverage including liability,medical payments,and damage to your auto. 
B)  coverage for damage to an insured automobile from perils other than collision. 
C)  coverage that adds items of property such as CB radios and telephones that are ordinarily excluded 
D)  coverage for bodily injuries suffered in an automobile accident. 
E)  none of the above. 
A)  complete coverage including liability,medical payments,and damage to your auto. 
B)  coverage for damage to an insured automobile from perils other than collision. 
C)  coverage that adds items of property such as CB radios and telephones that are ordinarily excluded 
D)  coverage for bodily injuries suffered in an automobile accident. 
E)  none of the above.

Question 10

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The advisable dollar limit for any one auto accident is [$100,000 | $300,000].

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 11

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Buying collision and comprehensive auto insurance from the dealer selling you the car is considered to be a [good | bad] idea.

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 12

Careful drivers have limited need for liability protection,because they are not likely to be at fault in an accident.

Accepted Answer

A) True 
 B)False

Question 13

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-To save HO insurance premiums,experts recommend that you should decrease your [deductible | liability coverage].

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 14

The most common definition of actual cash value is purchase price less depreciation.

Accepted Answer

A) True 
 B)False

Question 15

The premiums for homeowners' insurance are based on size of deductible,internal limits,and standard coverage.

Accepted Answer

A) True 
 B)False

Question 16

Homeowner's property insurance does not provide protection on the

Accepted Answer

A)  owned dwelling unit. 
B)  garage. 
C)  accompanying structures. 
D)  landscaping. 
E)  vacant lot. 
A)  owned dwelling unit. 
B)  garage. 
C)  accompanying structures. 
D)  landscaping. 
E)  vacant lot.

Question 17

Fire is an example of a hazard.

Accepted Answer

A) True 
 B)False

Question 18

Other-insurance clauses help prevent the violation of the principle of indemnity.

Accepted Answer

A) True 
 B)False

Question 19

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-A HO-2 policy will protect your property from losses due to [all | listed] perils.

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

After packing up to return home for the holidays after the fall semester,Peter stopped at Double T bookstore to sell textbooks.After collecting $25,he headed back to his pickup truck only to find a broken window,the truck broken into,and all his suitcases and personal property gone.The damages to his pickup would be covered by

Accepted Answer

A)  property damage liability auto coverage. 
B)  uninsured motorist auto coverage. 
C)  personal injury protection. 
D)  comprehensive (other than collision)auto coverage. 
E)  collision coverage. 
A)  property damage liability auto coverage. 
B)  uninsured motorist auto coverage. 
C)  personal injury protection. 
D)  comprehensive (other than collision)auto coverage. 
E)  collision coverage.

The principle of indemnity generally limits the amount that the insured may collect to the actual cash value of the property.

The Thomson's house burned to the ground! They felt they were adequately covered (see coverage below).Their car (market value $10,000)was in the garage and totally destroyed.How much will the Thompsons be reimbursed for their home?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The insurance company [will | will not] provide liability coverage if your dog bites the neighbor.

Your homeowner's policy will pay for damage to the neighbor's property when your 10 year old son throws a rock through her picture window.

Homeowner policy forms are fairly standardized from one company to another.

The minimum limit for personal umbrella policies is generally $1,000,000.

You just purchased an older home with a market value of $100,000 and a replacement value of $180,000.What HO form would meet your needs?

Comprehensive automobile coverage refers to

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The advisable dollar limit for any one auto accident is [$100,000 | $300,000].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Buying collision and comprehensive auto insurance from the dealer selling you the car is considered to be a [good | bad] idea.

Careful drivers have limited need for liability protection,because they are not likely to be at fault in an accident.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -To save HO insurance premiums,experts recommend that you should decrease your [deductible | liability coverage].

The most common definition of actual cash value is purchase price less depreciation.

The premiums for homeowners' insurance are based on size of deductible,internal limits,and standard coverage.

Homeowner's property insurance does not provide protection on the

Fire is an example of a hazard.

Other-insurance clauses help prevent the violation of the principle of indemnity.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A HO-2 policy will protect your property from losses due to [all | listed] perils.

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

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Exam 10: Protecting Your Property

The principle of indemnity generally limits the amount that the insured may collect to the actual cash value of the property.

The Thomson's house burned to the ground! They felt they were adequately covered (see coverage below).Their car (market value $10,000)was in the garage and totally destroyed.How much will the Thompsons be reimbursed for their home?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The insurance company [will | will not] provide liability coverage if your dog bites the neighbor.

Your homeowner's policy will pay for damage to the neighbor's property when your 10 year old son throws a rock through her picture window.

Homeowner policy forms are fairly standardized from one company to another.

The minimum limit for personal umbrella policies is generally $1,000,000.

You just purchased an older home with a market value of $100,000 and a replacement value of $180,000.What HO form would meet your needs?

Comprehensive automobile coverage refers to

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The advisable dollar limit for any one auto accident is [$100,000 | $300,000].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Buying collision and comprehensive auto insurance from the dealer selling you the car is considered to be a [good | bad] idea.

Careful drivers have limited need for liability protection,because they are not likely to be at fault in an accident.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -To save HO insurance premiums,experts recommend that you should decrease your [deductible | liability coverage].

The most common definition of actual cash value is purchase price less depreciation.

The premiums for homeowners' insurance are based on size of deductible,internal limits,and standard coverage.

Homeowner's property insurance does not provide protection on the

Fire is an example of a hazard.

Other-insurance clauses help prevent the violation of the principle of indemnity.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A HO-2 policy will protect your property from losses due to [all | listed] perils.

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