Question 1

Which of the following would be insured for actual cash value under a standard HO-2 policy?

Accepted Answer

A) The house 
B) Unscheduled personal property 
C) Scheduled personal property 
D) a and c 
E) a, b, and c 
A) The house 
B) Unscheduled personal property 
C) Scheduled personal property 
D) a and c 
E) a, b, and c

Question 2

Which of the following best describes the personal property floater?

Accepted Answer

A) An endorsement providing coverage for items of expensive personal property not adequately covered under the standard homeowners policy. 
B) An addition to the automobile policy intended to cover items of personal property that are often in or upon a covered automobile. 
C) A specialized inland marine policy covering boats and trailers used with boats. 
D) A liability policy that covers against liability caused by ownership or use of items of personal property. 
E) None of these 
A) An endorsement providing coverage for items of expensive personal property not adequately covered under the standard homeowners policy. 
B) An addition to the automobile policy intended to cover items of personal property that are often in or upon a covered automobile. 
C) A specialized inland marine policy covering boats and trailers used with boats. 
D) A liability policy that covers against liability caused by ownership or use of items of personal property. 
E) None of these

Question 3

Jorge and Nancy had a $30,000 repair bill on their home after the tornado went through town.Their policy contained the usual 80% co-insurance clause.Their home's replacement value was $150,000; their policy coverage was $110,000 with a $250 deductible.
a.How much insurance should they have carried to meet the co-insurance obligation?
b.What percentage of this loss will the insurance company pay?
c.How much of the loss will Jorge and Nancy have to absorb? (Show all work.)

Accepted Answer

a.Required coverage = .80 × $150,000 = $

Question 4

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-If a large wild animal damages your car,payment will come from your [collision | comprehensive] protection.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 5

After packing up to return home for the holidays after the fall semester,Tex stopped at Double T bookstore to sell back his used 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 loss of his personal property and suitcases would be covered by

Accepted Answer

A) umbrella liability insurance. 
B) comprehensive (other than collision) auto coverage. 
C) property damage liability auto coverage. 
D) property damage to the property of others (homeowners' coverage). 
E) personal property off premises (homeowners' coverage). 
A) umbrella liability insurance. 
B) comprehensive (other than collision) auto coverage. 
C) property damage liability auto coverage. 
D) property damage to the property of others (homeowners' coverage). 
E) personal property off premises (homeowners' coverage).

Question 6

Jake drove Amanda's truck to the football game because his car was broken.On the way home,Jake was involved in an accident that was his fault.The resulting liability damages totaled $85,000.Jake has $100,000 liability coverage on his car,and Amanda has $50,000 on her truck.How would the $85,000 liability damages be paid for this accident?

Accepted Answer

A) $50,000 from Amanda's policy with no further payment 
B) $85,000 from Jake's policy 
C) $50,000 from Amanda's policy plus $35,000 from Jake's policy 
D) $50,000 from Amanda's policy plus $35,000 out of Jake's pocket 
E) $50,000 from Amanda's policy plus $35,000 out of Amanda's pocket. 
A) $50,000 from Amanda's policy with no further payment 
B) $85,000 from Jake's policy 
C) $50,000 from Amanda's policy plus $35,000 from Jake's policy 
D) $50,000 from Amanda's policy plus $35,000 out of Jake's pocket 
E) $50,000 from Amanda's policy plus $35,000 out of Amanda's pocket.

Question 7

Uninsured motorist protection usually provides protection to your car if a hit-and-run incident occurs.

Accepted Answer

A) True 
 B)False

Question 8

Your auto liability insurance shows bodily injury limits of $100,000/$300,000.This means

Accepted Answer

A) $100,000 would be paid to the people in your automobile and the $300,000 to passengers in the other car. 
B) $100,000 is the limit per individual with $300,000 divided equally between the remaining passengers. 
C) $100,000 is the limit per individual with a $300,000 limit per accident. 
D) $100,000 is the limit per individual with $300,000 being paid to the driver of the other car. 
E) none of the above. 
A) $100,000 would be paid to the people in your automobile and the $300,000 to passengers in the other car. 
B) $100,000 is the limit per individual with $300,000 divided equally between the remaining passengers. 
C) $100,000 is the limit per individual with a $300,000 limit per accident. 
D) $100,000 is the limit per individual with $300,000 being paid to the driver of the other car. 
E) none of the above.

Question 9

The automobile insurance policy normally does not cover the theft of personal property left in the insured vehicle.

Accepted Answer

A) True 
 B)False

Question 10

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-A personal liability umbrella policy is designed to [replace | supplement] HO and car liability coverage.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 11

The insurance company will provide defense for a covered person against both civil and criminal charges involving her motor vehicle.

Accepted Answer

A) True 
 B)False

Question 12

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 13

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 14

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-A renter's policy typically [does | does not] provide protection against liability claims.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 15

A trampoline in your back yard is an example of a hazard.

Accepted Answer

A) True 
 B)False

Question 16

Personal umbrella policies are intended primarily for wealthy families who are often viewed as targets for large liability claims.

Accepted Answer

A) True 
 B)False

Question 17

Automobile liability claims could potentially be more costly to you than car damage claims.

Accepted Answer

A) True 
 B)False

Question 18

Section II of the homeowner's insurance contract covers

Accepted Answer

A) libel. 
B) contractual wrongdoing. 
C) the house and contents. 
D) liability of the insured. 
E) none of these. 
A) libel. 
B) contractual wrongdoing. 
C) the house and contents. 
D) liability of the insured. 
E) none of these.

Question 19

To save premium costs,one should decrease her deductible and liability coverage on a homeowners' policy.

Accepted Answer

A) True 
 B)False

Question 20

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Earthquake policy and flood protection [would | would not] be provided by the standard HO policy.

Accepted Answer

The answer of Choose the word or phrase in [...

Which of the following would be insured for actual cash value under a standard HO-2 policy?

Which of the following best describes the personal property floater?

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -If a large wild animal damages your car,payment will come from your [collision | comprehensive] protection.

Uninsured motorist protection usually provides protection to your car if a hit-and-run incident occurs.

Your auto liability insurance shows bodily injury limits of $100,000/$300,000.This means

The automobile insurance policy normally does not cover the theft of personal property left in the insured vehicle.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -A personal liability umbrella policy is designed to [replace | supplement] HO and car liability coverage.

The insurance company will provide defense for a covered person against both civil and criminal charges involving her motor vehicle.

Auto insurance is needed primarily because of

Comprehensive automobile coverage refers to

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -A renter's policy typically [does | does not] provide protection against liability claims.

A trampoline in your back yard is an example of a hazard.

Personal umbrella policies are intended primarily for wealthy families who are often viewed as targets for large liability claims.

Automobile liability claims could potentially be more costly to you than car damage claims.

Section II of the homeowner's insurance contract covers

To save premium costs,one should decrease her deductible and liability coverage on a homeowners' policy.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Earthquake policy and flood protection [would | would not] be provided by the standard HO policy.

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

Which of the following would be insured for actual cash value under a standard HO-2 policy?

Which of the following best describes the personal property floater?

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -If a large wild animal damages your car,payment will come from your [collision | comprehensive] protection.

Uninsured motorist protection usually provides protection to your car if a hit-and-run incident occurs.

Your auto liability insurance shows bodily injury limits of $100,000/$300,000.This means

The automobile insurance policy normally does not cover the theft of personal property left in the insured vehicle.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -A personal liability umbrella policy is designed to [replace | supplement] HO and car liability coverage.

The insurance company will provide defense for a covered person against both civil and criminal charges involving her motor vehicle.

Auto insurance is needed primarily because of

Comprehensive automobile coverage refers to

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -A renter's policy typically [does | does not] provide protection against liability claims.

A trampoline in your back yard is an example of a hazard.

Personal umbrella policies are intended primarily for wealthy families who are often viewed as targets for large liability claims.

Automobile liability claims could potentially be more costly to you than car damage claims.

Section II of the homeowner's insurance contract covers

To save premium costs,one should decrease her deductible and liability coverage on a homeowners' policy.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Earthquake policy and flood protection [would | would not] be provided by the standard HO policy.

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