Question 1

Your home and property have a market value of $240,000.To meet the coinsurance provision,you would need at least ________ of insurance.

Accepted Answer

A) $144,000 
B) $168,000 
C) $192,000 
D) $216,000 
E) none of the above 
A) $144,000 
B) $168,000 
C) $192,000 
D) $216,000 
E) none of the above

Question 2

On your home owners policy ________ protects any personal property that's owned or used by the policyholder,regardless of the location of this property.In other words,if you're on a vacation
In Hawaii and someone hits you with a pineapple and steals your suitcase,your personal property is still covered.

Accepted Answer

A) Coverage A 
B) Coverage B 
C) Coverage C 
D) Coverage D 
E) None of the above 
A) Coverage A 
B) Coverage B 
C) Coverage C 
D) Coverage D 
E) None of the above

Question 3

Coverage A: Dwelling protects

Accepted Answer

A) personal property in a dwelling. 
B) unattached structures on the dwelling site. 
C) your home. 
D) any attachments to your home. 
E) both C and D above 
A) personal property in a dwelling. 
B) unattached structures on the dwelling site. 
C) your home. 
D) any attachments to your home. 
E) both C and D above

Question 4

Personal liability insurance protects you from financial losses incurred if someone is injured on your property or as a result of your actions.

Accepted Answer

A) True 
 B)False

Question 5

The use of insurance credit scoring is more common with the sale of homeowner's insurance coverage than it is with automobile insurance coverage.

Accepted Answer

A) True 
 B)False

Question 6

The personal automobile policy (PAP)provides broad coverage,but there are a number of standard exceptions.Give five of them here.

Accepted Answer

You are not covered when:
-intentional i

Question 7

Suppose that,during a party,one of your guests drove their car into the corner of your garage while turning around.Where would you look for damage payment to fix your garage?

Accepted Answer

A) Their homeowner's insurance 
B) Your homeowner's insurance 
C) Your guest's PAP liability coverage 
D) Your guest's PAP comprehensive insurance 
E) Your guest's PAP collision insurance 
A) Their homeowner's insurance 
B) Your homeowner's insurance 
C) Your guest's PAP liability coverage 
D) Your guest's PAP comprehensive insurance 
E) Your guest's PAP collision insurance

Question 8

What are the areas covered in Part A: Liability coverage in a personal automobile policy?

Accepted Answer

A) Bodily injury,property damage,judgments awarded,court costs,legal defense fees 
B) Bodily injury,property damage,court costs,legal defense fees,bail bond 
C) Bodily injury,property damage,legal defense fees,bail bond,loss of wages 
D) Bodily injury,judgments awarded,court costs,loss of wages 
E) Judgments awarded,property damage,court costs,legal defense fees,bail bond 
A) Bodily injury,property damage,judgments awarded,court costs,legal defense fees 
B) Bodily injury,property damage,court costs,legal defense fees,bail bond 
C) Bodily injury,property damage,legal defense fees,bail bond,loss of wages 
D) Bodily injury,judgments awarded,court costs,loss of wages 
E) Judgments awarded,property damage,court costs,legal defense fees,bail bond

Question 9

________ would provide coverage for you against injuries caused by a negligent driver whose insurance company is insolvent.

Accepted Answer

A) Collision coverage 
B) Personal liability coverage 
C) Negligent driver rider 
D) Uninsured motorist's protection coverage 
E) None of the above 
A) Collision coverage 
B) Personal liability coverage 
C) Negligent driver rider 
D) Uninsured motorist's protection coverage 
E) None of the above

Question 10

The coinsurance provision requires that the insurance company will pay a portion of your financial losses in the event of a catastrophe.

Accepted Answer

A) True 
 B)False

Question 11

Suppose burglars trashed your apartment and stole your personal property.Your rent is $350 per month and you had to live in another apartment house for two months while the landlord had the apartment put back into livable condition.Under which section of an HO policy would you be covered and how much would you recover because of the move?

Accepted Answer

A) Section I coverage C,$350 
B) Section I coverage C,$700 
C) Section I coverage D,$350 
D) Section I coverage D,$700 
E) Section II coverage,$350 
A) Section I coverage C,$350 
B) Section I coverage C,$700 
C) Section I coverage D,$350 
D) Section I coverage D,$700 
E) Section II coverage,$350

Question 12

An auto policy defines coverage as $250,000/$500,000/$100,000.In this policy,how much would you be covered for bodily injury,in total for each accident?

Accepted Answer

A) $250,000 
B) $500,000 
C) $100,000 
D) None 
A) $250,000 
B) $500,000 
C) $100,000 
D) None

Question 13

List the most common automobile insurance discounts.

Accepted Answer

Accident-free discount
Multiple-automobi

Question 14

The disadvantage of actual cash value coverage of personal property compared to replacement cost coverage is that it

Accepted Answer

A) will reimburse you for replacement cost minus estimated depreciation. 
B) will reimburse you for the cash value of a new item. 
C) must be reported as a loss on your tax return. 
D) does not have to be reported as a loss on your tax return. 
E) none of the above. 
A) will reimburse you for replacement cost minus estimated depreciation. 
B) will reimburse you for the cash value of a new item. 
C) must be reported as a loss on your tax return. 
D) does not have to be reported as a loss on your tax return. 
E) none of the above.

Question 15

A homeowner's personal inventory will help you maximize your insurance claims in case of loss.

Accepted Answer

A) True 
 B)False

Question 16

For structural damage to your dwelling,it would be a good idea to request for an estimate from a qualified contractor before accepting the check from your insurance company.

Accepted Answer

A) True 
 B)False

Question 17

Lisa and Eric were notified that replacement cost coverage is in effect on a home owner's policy only if the home is insured for at least 80% of its replacement cost.This provision is known as the

Accepted Answer

A) Replacement Cost Rule. 
B) 80 Percent Rule. 
C) Replacement Cost Provision. 
D) none of the above. 
A) Replacement Cost Rule. 
B) 80 Percent Rule. 
C) Replacement Cost Provision. 
D) none of the above.

Question 18

Verci and Banok skidded on the ice and hit a telephone pole.Their car suffered severe damage to the front end.This expense will be covered under part D called

Accepted Answer

A) liability coverage. 
B) damage to your automobile coverage. 
C) underinsured damage coverage. 
D) property damage coverage. 
A) liability coverage. 
B) damage to your automobile coverage. 
C) underinsured damage coverage. 
D) property damage coverage.

Question 19

Young ________ generally pay the most for their insurance,because they have a statistically greater chance of having an accident.

Accepted Answer

A) married females 
B) unmarried males 
C) married males 
D) unmarried females 
A) married females 
B) unmarried males 
C) married males 
D) unmarried females

Question 20

________ auto insurance pays for your losses and the losses suffered by your passengers,while the other driver's insurance would pay for his or her losses.This arrangement is made to keep insurance costs down,especially for settling claims.

Accepted Answer

A) Comprehensive 
B) No-fault 
C) Your fault 
D) PAP 
E) PIP 
A) Comprehensive 
B) No-fault 
C) Your fault 
D) PAP 
E) PIP

Your home and property have a market value of $240,000.To meet the coinsurance provision,you would need at least ________ of insurance.

Coverage A: Dwelling protects

Personal liability insurance protects you from financial losses incurred if someone is injured on your property or as a result of your actions.

The use of insurance credit scoring is more common with the sale of homeowner's insurance coverage than it is with automobile insurance coverage.

The personal automobile policy (PAP)provides broad coverage,but there are a number of standard exceptions.Give five of them here.

Suppose that,during a party,one of your guests drove their car into the corner of your garage while turning around.Where would you look for damage payment to fix your garage?

What are the areas covered in Part A: Liability coverage in a personal automobile policy?

________ would provide coverage for you against injuries caused by a negligent driver whose insurance company is insolvent.

The coinsurance provision requires that the insurance company will pay a portion of your financial losses in the event of a catastrophe.

An auto policy defines coverage as $250,000/$500,000/$100,000.In this policy,how much would you be covered for bodily injury,in total for each accident?

List the most common automobile insurance discounts.

The disadvantage of actual cash value coverage of personal property compared to replacement cost coverage is that it

A homeowner's personal inventory will help you maximize your insurance claims in case of loss.

For structural damage to your dwelling,it would be a good idea to request for an estimate from a qualified contractor before accepting the check from your insurance company.

Lisa and Eric were notified that replacement cost coverage is in effect on a home owner's policy only if the home is insured for at least 80% of its replacement cost.This provision is known as the

Verci and Banok skidded on the ice and hit a telephone pole.Their car suffered severe damage to the front end.This expense will be covered under part D called

Young ________ generally pay the most for their insurance,because they have a statistically greater chance of having an accident.

________ auto insurance pays for your losses and the losses suffered by your passengers,while the other driver's insurance would pay for his or her losses.This arrangement is made to keep insurance costs down,especially for settling claims.

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

Your home and property have a market value of $240,000.To meet the coinsurance provision,you would need at least ________ of insurance.

Coverage A: Dwelling protects

Personal liability insurance protects you from financial losses incurred if someone is injured on your property or as a result of your actions.

The use of insurance credit scoring is more common with the sale of homeowner's insurance coverage than it is with automobile insurance coverage.

The personal automobile policy (PAP)provides broad coverage,but there are a number of standard exceptions.Give five of them here.

Suppose that,during a party,one of your guests drove their car into the corner of your garage while turning around.Where would you look for damage payment to fix your garage?

What are the areas covered in Part A: Liability coverage in a personal automobile policy?

________ would provide coverage for you against injuries caused by a negligent driver whose insurance company is insolvent.

The coinsurance provision requires that the insurance company will pay a portion of your financial losses in the event of a catastrophe.

An auto policy defines coverage as $250,000/$500,000/$100,000.In this policy,how much would you be covered for bodily injury,in total for each accident?

List the most common automobile insurance discounts.

The disadvantage of actual cash value coverage of personal property compared to replacement cost coverage is that it

A homeowner's personal inventory will help you maximize your insurance claims in case of loss.

For structural damage to your dwelling,it would be a good idea to request for an estimate from a qualified contractor before accepting the check from your insurance company.

Lisa and Eric were notified that replacement cost coverage is in effect on a home owner's policy only if the home is insured for at least 80% of its replacement cost.This provision is known as the

Verci and Banok skidded on the ice and hit a telephone pole.Their car suffered severe damage to the front end.This expense will be covered under part D called

Young ________ generally pay the most for their insurance,because they have a statistically greater chance of having an accident.

________ auto insurance pays for your losses and the losses suffered by your passengers,while the other driver's insurance would pay for his or her losses.This arrangement is made to keep insurance costs down,especially for settling claims.

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