Filters
Question type
Study Flashcards

What type of auto insurance protects you in the case of accident regardless of who caused the accident?


A) No-cause insurance
B) No-fault insurance
C) No-litigation insurance
D) Cause-free insurance
E) None of the above

F) A) and B)
G) All of the above

Correct Answer

verifed

verified

Which of the following are not discounts for PAP coverage?


A) Good student discount
B) Anti-theft equipment discount
C) Low miles per gallon discount
D) Accident free discount
E) All of the above are discounts for PAP.

F) C) and E)
G) B) and C)

Correct Answer

verifed

verified

In general,which of the following is true regarding the amount of liability insurance you should carry?


A) It should never be greater than your state's minimum.
B) It should be inversely proportional to your net worth.
C) The greater your assets, the more coverage you should carry.
D) None of the above are correct.

E) All of the above
F) C) and D)

Correct Answer

verifed

verified

Describe each of the six HO packaged policies.Which one is the most common?

Correct Answer

verifed

verified

HO-1 is the basic form.It provides very ...

View Answer

John Meadow rents an apartment and wants tenant's insurance or an ________ policy.


A) HO-1
B) HO-2
C) HO-3
D) HO-4
E) HO-6

F) All of the above
G) B) and E)

Correct Answer

verifed

verified

The replacement value of the house less accumulated depreciation (which is the decline in value over time due to wear and tear) is known as


A) actual cash value.
B) replacement value.
C) market value.
D) depreciation.
E) none of the above.

F) D) and E)
G) B) and E)

Correct Answer

verifed

verified

You made a list of things to do when involved in an auto accident - but you lost it.You have just been in a wreck with another vehicle.What are five important things to do now?

Correct Answer

verifed

verified

1. Get help for the injured and have som...

View Answer

Which of the following statements is true?


A) The lower your insurance credit score, the higher your homeowner's insurance rate will be.
B) The higher your insurance credit score, the higher your homeowner's insurance rate will be.

C) A) and B)
D) undefined

Correct Answer

verifed

verified

A teenage driver crashes her parents' minivan into an office building,causing $85,000 in damage to the building.The automobile liability insurance limits are 100/250/75.How will the damages be allocated between the driver and the insurance company?


A) The driver will be responsible for $85,000.
B) The driver will be responsible for $75,000, the insurance company for $10,000.
C) The driver will be responsible for $10,000, the insurance company for $75,000.
D) The insurance company will be responsible for $85,000.

E) B) and C)
F) C) and D)

Correct Answer

verifed

verified

Uninsured motorists coverage


A) can be purchased by uninsured drivers after an accident to retroactively cover their losses.
B) will not provide coverage if the other driver's insurance company is insolvent.
C) will cover injuries caused by a hit-and-run driver.
D) All of the above are true.

E) A) and C)
F) B) and C)

Correct Answer

verifed

verified

You want to keep your insurance costs down on your car.Prepare a list of things to ask your agent and to do in general.

Correct Answer

verifed

verified

1. Is your company a high-quality,top-ra...

View Answer

Most companies allow six endorsements or supplemental coverages to meet their customers' needs.Name and describe the six.Which one is unique and stands apart from the others?

Correct Answer

verifed

verified

-Personal articles floaters provide addi...

View Answer

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

F) B) and E)
G) B) and C)

Correct Answer

verifed

verified

When you purchase a(n) ________,you are obtaining an extension to a homeowner's insurance policy that provides coverage for all personal property regardless of where it is located.


A) uninsured property addendum
B) property addendum
C) personal rider
D) personal articles floater
E) none of the above

F) B) and C)
G) D) and E)

Correct Answer

verifed

verified

An HO-4 policy is a renter's insurance policy that protects the renter's personal property.

A) True
B) False

Correct Answer

verifed

verified

An attached garage is covered under Coverage B: Other structures.

A) True
B) False

Correct Answer

verifed

verified

Your apartment building burned down while you were on vacation.Fortunately,you have renter's insurance.What will your policy cover?


A) Any damages to the building structure
B) Your neighbor's personal property
C) Your hotel and additional expenses based on a percentage of your property coverage
D) All of the above are correct.
E) None of the above are correct.

F) A) and D)
G) None of the above

Correct Answer

verifed

verified

Amy Lambert's home is insured for $85,000 and her detached garage is destroyed by a windstorm.She hopes to collect $11,850 under her homeowner's policy.What will happen?


A) Amy will receive $11,850 under Coverage B: Other structures
B) Amy will receive $11,850 under Coverage A: Dwelling
C) Amy will receive $8,500 under Coverage B: Other structures
D) Amy will receive $8,500 under Coverage A: Dwelling
E) Amy will receive $11,850 under Coverage C: Personal property

F) A) and E)
G) B) and D)

Correct Answer

verifed

verified

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?


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

F) A) and B)
G) A) and E)

Correct Answer

verifed

verified

With automobile insurance damage claims,Insurance companies will use the concept of "contributory negligence" to determine how much to pay in damages.What does this concept mean?

Correct Answer

verifed

verified

The term contributory negligence deals w...

View Answer

Showing 101 - 120 of 147

Related Exams

Exam 1

The Financial Planning Process

101 Questions

Exam 2

Measuring Your Financial Health and Making a Plan

117 Questions

Exam 3

Understanding and Appreciating the Time Value of Money

122 Questions

Exam 4

Tax Planning and Strategies

129 Questions

Exam 5

Cash or Liquid Asset Management

110 Questions

Exam 6

Using Credit Cards: The Role of Open Credit

153 Questions

Exam 7

Student and Consumer Loans: The Role of Planned Borrowing

125 Questions

Exam 8

The Home and Automobile Decision

199 Questions

Exam 9

Life and Health Insurance

212 Questions

Exam 11

Investment Basics

309 Questions

Exam 12

Investing in Stocks

178 Questions

Exam 13

Investing in Bonds and Other Alternatives

137 Questions

Exam 14

Mutual Funds: An Easy Way to Diversify

136 Questions

Exam 15

Retirement Planning

147 Questions

Exam 16

Estate Planning: Saving Your Heirs Money and Headaches

106 Questions

Exam 17

Financial Life Events Fitting the Pieces Together

81 Questions

Show Answer