Question 1

Describe the difference between actual cash value and replacement value.

Accepted Answer

Homeowner's insurance is set up to pay t

Question 2

With no-fault insurance you can still sue for "pain and suffering" but only if the other driver was at fault.

Accepted Answer

A) True 
 B)False

Question 3

Reggie was hosting a BBQ when the deck fell off his house.Several of his friends were hurt in the accident.Luckily for Reggie he has ________ coverage on his home owner's insurance.

Accepted Answer

A) personal articles 
B) loss of use 
C) personal liability 
D) none of the above 
A) personal articles 
B) loss of use 
C) personal liability 
D) none of the above

Question 4

Joey's house and property has a market value of $550,000.According to the coinsurance provision,
He must be insured for

Accepted Answer

A) $550,000. 
B) $500,000. 
C) $425,000. 
D) $440,000. 
A) $550,000. 
B) $500,000. 
C) $425,000. 
D) $440,000.

Question 5

Deon tried to merge onto the Atlantic Expressway and caused a three-car accident.He has automobile insurance with limits of 50/100/25.What is the maximum amount that his insurance company will pay for the bodily injury liability claims?

Accepted Answer

A) $50,000 
B) $75,000 
C) $100,000 
D) $125,000 
A) $50,000 
B) $75,000 
C) $100,000 
D) $125,000

Question 6

What characteristics will affect the cost of your car insurance?

Accepted Answer

A) The type of automobile you drive 
B) Where you reside 
C) How many miles you drive 
D) All of the above 
E) All but B are correct. 
A) The type of automobile you drive 
B) Where you reside 
C) How many miles you drive 
D) All of the above 
E) All but B are correct.

Question 7

The inflation guard endorsement on your homeowners insurance policy automatically decreases your policy premiums each year due to the inflation rate.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements best describes the 80 percent rule?

Accepted Answer

A) Your home is covered for 80 percent of its original value,regardless of replacement cost. 
B) Your home is covered for replacement cost,provided the total premiums paid are less than 80 percent of the outstanding premiums due. 
C) Replacement cost coverage is only effective if your home is insured for at least 80 percent of its replacement cost. 
D) Your house cannot be replaced if its replacement cost is less than 80 percent of assessed market value. 
E) none of the above 
A) Your home is covered for 80 percent of its original value,regardless of replacement cost. 
B) Your home is covered for replacement cost,provided the total premiums paid are less than 80 percent of the outstanding premiums due. 
C) Replacement cost coverage is only effective if your home is insured for at least 80 percent of its replacement cost. 
D) Your house cannot be replaced if its replacement cost is less than 80 percent of assessed market value. 
E) none of the above

Question 9

List seven general ways you can keep your automobile insurance rates down while ensuring complete coverage.

Accepted Answer

1.Shop comparatively.
2.Consider only hi

Question 10

Suppose Lisa and Eric do not purchase an adequate amount of insurance on their home.In the event of a claim,they would pay a portion of it.This is the

Accepted Answer

A) inflation guard. 
B) added liability. 
C) replacement cost. 
D) coinsurance provision. 
E) 70 percent rule. 
A) inflation guard. 
B) added liability. 
C) replacement cost. 
D) coinsurance provision. 
E) 70 percent rule.

Question 11

A(n)________ is an insurance company that distributes its products to customers without the use of agents.

Accepted Answer

A) direct writer 
B) private writer 
C) underwriter 
D) public writer 
A) direct writer 
B) private writer 
C) underwriter 
D) public writer

Question 12

Elvis drove expensive cars.Which of the following was not a determinant in his automobile insurance costs?

Accepted Answer

A) Type of vehicle 
B) His personal characteristics 
C) His driving record 
D) Where he lived 
E) All of the above WERE determinants in the cost of his auto insurance. 
A) Type of vehicle 
B) His personal characteristics 
C) His driving record 
D) Where he lived 
E) All of the above WERE determinants in the cost of his auto insurance.

Question 13

In your many travels,you have suddenly found yourself in an auto accident - the very first one where you are at fault.Both cars are blocking a bridge with heavy city traffic.What should you do?

Accepted Answer

A) Stay at the scene of the accident - have someone call the police and get medical help. 
B) Move the cars to a safe place so no one else gets hit. 
C) Call a lawyer to meet you at the scene of the accident. 
D) Refrain from admitting guilt or signing anything. 
E) All of the above except C 
A) Stay at the scene of the accident - have someone call the police and get medical help. 
B) Move the cars to a safe place so no one else gets hit. 
C) Call a lawyer to meet you at the scene of the accident. 
D) Refrain from admitting guilt or signing anything. 
E) All of the above except C

Question 14

By increasing your deductible from $250 to $500 you could save up to ________ percent.

Accepted Answer

A) 20 
B) 18 
C) 12 
D) 10 
A) 20 
B) 18 
C) 12 
D) 10

Question 15

If you have a significant amount of assets,most financial planners recommend the following automobile liability insurance limits.

Accepted Answer

A) 50/100/25 
B) 100/300/100 
C) 250/500/100 
D) 500/1,000/250 
A) 50/100/25 
B) 100/300/100 
C) 250/500/100 
D) 500/1,000/250

Question 16

John Murphy experienced a freak storm that damaged his roof and allowed water to leak into the house.The agent and adjuster said the peril was not covered under his HO-2 policy.John wishes he had taken out an ________ policy.

Accepted Answer

A) HO-1 
B) HO-3 
C) HO-4 
D) HO-5 
E) HO-6 
A) HO-1 
B) HO-3 
C) HO-4 
D) HO-5 
E) HO-6

Question 17

Flood protection insurance is generally administered and subsidized by the federal government through the Department of Housing and Urban Development.

Accepted Answer

A) True 
 B)False

Question 18

You want to make an informed choice in buying auto insurance.You have studied the major cost determinants.Write a report in first person telling how they will affect you.

Accepted Answer

The sportier and more high-powered car I

Question 19

The minimum level of personal liability coverage per accident in a homeowner's policy is?

Accepted Answer

A) $50,000 
B) $100,000 
C) $250,000 
D) $150,000 
A) $50,000 
B) $100,000 
C) $250,000 
D) $150,000

Question 20

Renter's insurance includes liability insurance.

Accepted Answer

A) True 
 B)False

Describe the difference between actual cash value and replacement value.

With no-fault insurance you can still sue for "pain and suffering" but only if the other driver was at fault.

Reggie was hosting a BBQ when the deck fell off his house.Several of his friends were hurt in the accident.Luckily for Reggie he has ________ coverage on his home owner's insurance.

Joey's house and property has a market value of $550,000.According to the coinsurance provision, He must be insured for

Deon tried to merge onto the Atlantic Expressway and caused a three-car accident.He has automobile insurance with limits of 50/100/25.What is the maximum amount that his insurance company will pay for the bodily injury liability claims?

What characteristics will affect the cost of your car insurance?

The inflation guard endorsement on your homeowners insurance policy automatically decreases your policy premiums each year due to the inflation rate.

Which of the following statements best describes the 80 percent rule?

List seven general ways you can keep your automobile insurance rates down while ensuring complete coverage.

Suppose Lisa and Eric do not purchase an adequate amount of insurance on their home.In the event of a claim,they would pay a portion of it.This is the

A(n)________ is an insurance company that distributes its products to customers without the use of agents.

Elvis drove expensive cars.Which of the following was not a determinant in his automobile insurance costs?

In your many travels,you have suddenly found yourself in an auto accident - the very first one where you are at fault.Both cars are blocking a bridge with heavy city traffic.What should you do?

By increasing your deductible from $250 to $500 you could save up to ________ percent.

If you have a significant amount of assets,most financial planners recommend the following automobile liability insurance limits.

John Murphy experienced a freak storm that damaged his roof and allowed water to leak into the house.The agent and adjuster said the peril was not covered under his HO-2 policy.John wishes he had taken out an ________ policy.

Flood protection insurance is generally administered and subsidized by the federal government through the Department of Housing and Urban Development.

You want to make an informed choice in buying auto insurance.You have studied the major cost determinants.Write a report in first person telling how they will affect you.

The minimum level of personal liability coverage per accident in a homeowner's policy is?

Renter's insurance includes liability insurance.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters

Exam 10: Property and Liability Insurance

Describe the difference between actual cash value and replacement value.

With no-fault insurance you can still sue for "pain and suffering" but only if the other driver was at fault.

Reggie was hosting a BBQ when the deck fell off his house.Several of his friends were hurt in the accident.Luckily for Reggie he has ________ coverage on his home owner's insurance.

Joey's house and property has a market value of $550,000.According to the coinsurance provision, He must be insured for

Deon tried to merge onto the Atlantic Expressway and caused a three-car accident.He has automobile insurance with limits of 50/100/25.What is the maximum amount that his insurance company will pay for the bodily injury liability claims?

What characteristics will affect the cost of your car insurance?

The inflation guard endorsement on your homeowners insurance policy automatically decreases your policy premiums each year due to the inflation rate.

Which of the following statements best describes the 80 percent rule?

List seven general ways you can keep your automobile insurance rates down while ensuring complete coverage.

Suppose Lisa and Eric do not purchase an adequate amount of insurance on their home.In the event of a claim,they would pay a portion of it.This is the

A(n)________ is an insurance company that distributes its products to customers without the use of agents.

Elvis drove expensive cars.Which of the following was not a determinant in his automobile insurance costs?

In your many travels,you have suddenly found yourself in an auto accident - the very first one where you are at fault.Both cars are blocking a bridge with heavy city traffic.What should you do?

By increasing your deductible from $250 to $500 you could save up to ________ percent.

If you have a significant amount of assets,most financial planners recommend the following automobile liability insurance limits.

John Murphy experienced a freak storm that damaged his roof and allowed water to leak into the house.The agent and adjuster said the peril was not covered under his HO-2 policy.John wishes he had taken out an ________ policy.

Flood protection insurance is generally administered and subsidized by the federal government through the Department of Housing and Urban Development.

You want to make an informed choice in buying auto insurance.You have studied the major cost determinants.Write a report in first person telling how they will affect you.

The minimum level of personal liability coverage per accident in a homeowner's policy is?

Renter's insurance includes liability insurance.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters