Question 1

When the other driver is at fault,damages to your car must be paid by the other driver's property damage liability coverage.

Accepted Answer

A) True 
 B)False

Question 2

Umbrella liability insurance policies provide for high dollar amounts of coverage over and above the basic policies.

Accepted Answer

A) True 
 B)False

Question 3

Natalie has an auto insurance policy that includes both collision and comprehensive coverage.She has a $500 deductible on her collision coverage and a $200 deductible on her comprehensive coverage.Her car has a book value of $7,000 when her car is damaged by a tornado.The car will cost $8,500 to repair.How much will Natalie's insurance company pay in this situation?​

Accepted Answer

A)  ​$6,500 
B)  ​$6,800 
C)  ​$8,000 
D)  ​$8,300 
A)  ​$6,500 
B)  ​$6,800 
C)  ​$8,000 
D)  ​$8,300

Question 4

The federal government administers the National Flood Insurance Program.

Accepted Answer

A) True 
 B)False

Question 5

____ policy forms are especially written for owners of older homes.

Accepted Answer

A)  ​HO-1 
B)  ​HO-2 
C)  ​HO-3 
D)  ​HO-8 
A)  ​HO-1 
B)  ​HO-2 
C)  ​HO-3 
D)  ​HO-8

Question 6

Which of the following coverages are relatively inexpensive to carry?​

Accepted Answer

A)  ​Rental reimbursement and towing 
B)  ​Bodily injury and property damage liability 
C)  ​Collision and comprehensive 
D)  ​Medical payments and collision 
A)  ​Rental reimbursement and towing 
B)  ​Bodily injury and property damage liability 
C)  ​Collision and comprehensive 
D)  ​Medical payments and collision

Question 7

What is the actual cash value for a computer with a life expectancy of seven years that was purchased two years ago for $1,800 and would cost $2,300 to replace?​

Accepted Answer

A)  ​$1,800 
B)  ​$1,286 
C)  ​$1,643 
D)  ​$2,300 
A)  ​$1,800 
B)  ​$1,286 
C)  ​$1,643 
D)  ​$2,300

Question 8

Which of the following HO forms is especially written for condominium owners?

Accepted Answer

A)  ​HO-3 
B)  ​HO-4 
C)  ​HO-6 
D)  ​HO-8 
A)  ​HO-3 
B)  ​HO-4 
C)  ​HO-6 
D)  ​HO-8

Question 9

When shopping for insurance,your goal should be to "buy" what you need and not be "sold" more or less coverage.

Accepted Answer

A) True 
 B)False

Question 10

An individual's success in giving up smoking is an example of loss control.

Accepted Answer

A) True 
 B)False

Question 11

Your son,Jason,left his skateboard at the bottom of your basement stairs.While going downstairs,you stepped on the skateboard and broke your ankle.The resulting medical bill was $2755.How much would your homeowner's insurance pay if you had a $1,000 per-person limit on no-fault medical payments coverage?

Accepted Answer

A)  ​$0 
B)  ​$1,000 
C)  ​$1755 
D)  ​$2755 
A)  ​$0 
B)  ​$1,000 
C)  ​$1755 
D)  ​$2755

Question 12

One can lower insurance premiums by doing all of the following except

Accepted Answer

A)  ​increasing the deductible. 
B)  ​avoiding coinsurance. 
C)  ​reducing hazards. 
D)  ​practicing loss reduction. 
A)  ​increasing the deductible. 
B)  ​avoiding coinsurance. 
C)  ​reducing hazards. 
D)  ​practicing loss reduction.

Question 13

When you have a homeowner's loss,you should not
​

Accepted Answer

A)  ​contact your insurance agent. 
B)  ​file a report with the police or other appropriate agency. 
C)  ​make permanent repairs until the insurance company has inspected the premises. 
D)  ​videotape or photograph the damage. 
A)  ​contact your insurance agent. 
B)  ​file a report with the police or other appropriate agency. 
C)  ​make permanent repairs until the insurance company has inspected the premises. 
D)  ​videotape or photograph the damage.

Question 14

Members of your family are covered for small bodily injury losses under your homeowner's policy.

Accepted Answer

A) True 
 B)False

Question 15

Craig and Jan Johnson have a health insurance policy with a $750 deductible and 35 percent coinsurance.Craig recently sustained $7,250 in medical expenses.How much will Craig and Jan pay?

Accepted Answer

A)  ​$1,788 
B)  ​$2,538 
C)  ​$3,025 
D)  ​$6,500 
A)  ​$1,788 
B)  ​$2,538 
C)  ​$3,025 
D)  ​$6,500

Question 16

The best way to document a homeowner's insurance loss is with pictures.

Accepted Answer

A) True 
 B)False

Question 17

The additional cost of increasing the liability coverage on homeowner's policies is substantial.

Accepted Answer

A) True 
 B)False

Question 18

Deciding not to drive a car is an example of handling risk through​

Accepted Answer

A)  ​risk avoidance. 
B)  ​loss control. 
C)  ​risk reduction. 
D)  ​transferring risk. 
A)  ​risk avoidance. 
B)  ​loss control. 
C)  ​risk reduction. 
D)  ​transferring risk.

Question 19

A situation involving certain types of perils such as earthquakes and floods where only those people with high probabilities of loss will want to buy the coverage thereby violating the law of large numbers is called
​

Accepted Answer

A)  ​unaffordable risk. 
B)  ​adverse selection. 
C)  ​the large-loss principle. 
D)  ​the risk of large numbers. 
A)  ​unaffordable risk. 
B)  ​adverse selection. 
C)  ​the large-loss principle. 
D)  ​the risk of large numbers.

Question 20

Insurance that covers the cost of one's annual vision checkup and one pair of glasses annually would typically be considered important insurance.

Accepted Answer

A) True 
 B)False

When the other driver is at fault,damages to your car must be paid by the other driver's property damage liability coverage.

Umbrella liability insurance policies provide for high dollar amounts of coverage over and above the basic policies.

The federal government administers the National Flood Insurance Program.

____ policy forms are especially written for owners of older homes.

Which of the following coverages are relatively inexpensive to carry?

What is the actual cash value for a computer with a life expectancy of seven years that was purchased two years ago for $1,800 and would cost $2,300 to replace?

Which of the following HO forms is especially written for condominium owners?

When shopping for insurance,your goal should be to "buy" what you need and not be "sold" more or less coverage.

An individual's success in giving up smoking is an example of loss control.

One can lower insurance premiums by doing all of the following except

When you have a homeowner's loss,you should not

Members of your family are covered for small bodily injury losses under your homeowner's policy.

Craig and Jan Johnson have a health insurance policy with a $750 deductible and 35 percent coinsurance.Craig recently sustained $7,250 in medical expenses.How much will Craig and Jan pay?

The best way to document a homeowner's insurance loss is with pictures.

The additional cost of increasing the liability coverage on homeowner's policies is substantial.

Deciding not to drive a car is an example of handling risk through

A situation involving certain types of perils such as earthquakes and floods where only those people with high probabilities of loss will want to buy the coverage thereby violating the law of large numbers is called

Insurance that covers the cost of one's annual vision checkup and one pair of glasses annually would typically be considered important insurance.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Investing Through Mutual Funds

Real Estate and High-Risk Investments

Retirement Planning

Filters

Exam 10: Managing Property and Liability Risk

When the other driver is at fault,damages to your car must be paid by the other driver's property damage liability coverage.

Umbrella liability insurance policies provide for high dollar amounts of coverage over and above the basic policies.

The federal government administers the National Flood Insurance Program.

____ policy forms are especially written for owners of older homes.

Which of the following coverages are relatively inexpensive to carry?​

What is the actual cash value for a computer with a life expectancy of seven years that was purchased two years ago for $1,800 and would cost $2,300 to replace?​

Which of the following HO forms is especially written for condominium owners?

When shopping for insurance,your goal should be to "buy" what you need and not be "sold" more or less coverage.

An individual's success in giving up smoking is an example of loss control.

One can lower insurance premiums by doing all of the following except

When you have a homeowner's loss,you should not ​

Members of your family are covered for small bodily injury losses under your homeowner's policy.

Craig and Jan Johnson have a health insurance policy with a $750 deductible and 35 percent coinsurance.Craig recently sustained $7,250 in medical expenses.How much will Craig and Jan pay?

The best way to document a homeowner's insurance loss is with pictures.

The additional cost of increasing the liability coverage on homeowner's policies is substantial.

Deciding not to drive a car is an example of handling risk through​

A situation involving certain types of perils such as earthquakes and floods where only those people with high probabilities of loss will want to buy the coverage thereby violating the law of large numbers is called ​

Insurance that covers the cost of one's annual vision checkup and one pair of glasses annually would typically be considered important insurance.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Investing Through Mutual Funds

Real Estate and High-Risk Investments

Retirement Planning

Filters

Which of the following coverages are relatively inexpensive to carry?

What is the actual cash value for a computer with a life expectancy of seven years that was purchased two years ago for $1,800 and would cost $2,300 to replace?

When you have a homeowner's loss,you should not

Deciding not to drive a car is an example of handling risk through

A situation involving certain types of perils such as earthquakes and floods where only those people with high probabilities of loss will want to buy the coverage thereby violating the law of large numbers is called