Question 1

The 25 in 50/100/25 refers to ________ coverage.

Accepted Answer

A)   collision
B)   bodily injury liability
C)   comprehensive physical damage
D)   property damage liabilityE) None of the above
F) A) and C)

Question 2

In general,which coverage provides higher total dollar coverage?

Accepted Answer

A)   Medical payments up to $10,000
B)   Collision coverage
C)   Comprehensive coverage
D)   Liability coverage of 100/300E) B) and C)
F) C) and D)

Question 3

Having liability coverage as part of auto and homeowner's policies helps protect your ________ in the event of an accident.

Accepted Answer

A)   insurance rates
B)   credit rating
C)   net worth
D)   house valueE) A) and D)
F) A) and C)

Question 4

In the context of insurance,the term liability is used to mean that you may be required to pay other individuals for damages that you caused to them or their property.

Accepted Answer

A) True 
 B)False

Question 5

If your neighbor falls down the steps in your home and sues,you could be held responsible for her injuries.

Accepted Answer

A) True 
 B)False

Question 6

The coverage that is designed to protect you if you cause an accident where the driver or passenger of the other car sustains injuries and sues you is called ________.

Accepted Answer

bodily inj...

Question 7

Most home insurance policies provide coverage for

Accepted Answer

A)   earthquake damage.
B)   liability.
C)   flood damage.
D)   additional personal property floaters.E) All of the above
F) A) and D)

Question 8

Renter's insurance covers your possessions and the structure of the house or condo you are renting.

Accepted Answer

A) True 
 B)False

Question 9

Younger drivers,especially males,between the ages of 16 and 25 are more likely to get in accidents and therefore pay higher insurance premiums.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is considered personal property for home insurance coverage?

Accepted Answer

A)   An automobile
B)   A garage
C)   Furniture
D)   Trees and shrubsE) A) and D)
F) B) and C)

Question 11

The primary function of insurance is to

Accepted Answer

A)   insure you against all types of risk.
B)   become wealthy from the claims you file.
C)   maintain your existing level of wealth.
D)   give you peace of mind.E) A) and D)
F) B) and C)

Question 12

If you have a car accident in which a person in the other car is injured,the type of insurance that would protect you from financial loss is

Accepted Answer

A)   life insurance.
B)   homeowners insurance.
C)   health insurance.
D)   auto insurance.E) None of the above
F) B) and C)

Question 13

Which of the following is the only required coverage if you do not have a lien on your car?

Accepted Answer

A)   Liability coverage
B)   Medical payments to others
C)   Collision and comprehensive coverage
D)   None of the coverages are requiredE) B) and D)
F) C) and D)

Question 14

The comprehensive and collision premium of a Rolls-Royce in relationship to a Chevy

Accepted Answer

A)   will be higher because a Rolls-Royce costs more than a Chevy.
B)   will be lower because Rolls-Royce drivers will be more careful.
C)   depends on the insurance rate structure of the state in which the car is insured.
D)   is a poor investment.E) A) and C)
F) All of the above

Question 15

Homeowner's insurance provides insurance in the event of property damage or personal liability relating to home ownership,but not theft.

Accepted Answer

A) True 
 B)False

Question 16

Some states have implemented ________ insurance programs that do not hold a specific driver liable for causing an accident.

Accepted Answer

The answer of Some states have implemented ________ insurance programs...

Question 17

Use the following two columns of items to answer the matching questions below:
-financial responsibility laws

Accepted Answer

A)  requires individuals who drive cars to purchase a minimum amount of liability insurance
B)  pays for injuries to you or people in your car in an accident where you (the driver)  are at fault
C)  a set dollar amount that you are responsible for paying before any coverage is provided by your insurer
D)  covers damage to your car as a result of theft, fire, vandalism, or various other events
E)  vehicle insurance to cover various injuries, your property, and the property of othersF) covers damage to your car when you are at fault in an accidentG) D) and F)
H) C) and E)

Question 18

An umbrella policy is designed to cover

Accepted Answer

A)   additional buildings on your property.
B)   property when traveling away from home.
C)   major personal liability suits.
D)   flood damage.E) All of the above
F) A) and B)

Question 19

The bodily injury liability coverage of your automobile policy will not pay for

Accepted Answer

A)   medical expenses of those in the other car for an accident that you caused.
B)   lost wages of those in the other car for an accident that you caused.
C)   injuries to others in your car due to an accident that you caused.
D)   pain and suffering awards to those in the other car for an accident that you caused.E) A) and B)
F) C) and D)

Question 20

People are more willing to purchase or increase their insurance coverage when

Accepted Answer

A)   economic conditions are favorable and incomes are lower.
B)   economic conditions are favorable and incomes are higher.
C)   economic conditions are weak and incomes are lower.
D)   None of the above.E) All of the above
F) B) and C)

Exam 11: Auto and Homeowners Insurance

Most home insurance policies provide coverage for

Correct AnswerverifiedShow Answer

The comprehensive and collision premium of a Rolls-Royce in relationship to a Chevy

Correct AnswerverifiedShow Answer

The bodily injury liability coverage of your automobile policy will not pay for

Correct AnswerverifiedShow Answer

Which of the following is the only required coverage if you do not have a lien on your car?

Correct AnswerverifiedShow Answer

Some states have implemented ________ insurance programs that do not hold a specific driver liable for causing an accident.

Correct AnswerverifiedShow Answer

Renter's insurance covers your possessions and the structure of the house or condo you are renting.

Correct AnswerverifiedShow Answer

In general,which coverage provides higher total dollar coverage?

Correct AnswerverifiedShow Answer

The 25 in 50/100/25 refers to ________ coverage.

Correct AnswerverifiedShow Answer

In the context of insurance,the term liability is used to mean that you may be required to pay other individuals for damages that you caused to them or their property.

Correct AnswerverifiedShow Answer

Use the following two columns of items to answer the matching questions below: -financial responsibility laws

Correct AnswerverifiedShow Answer

If you have a car accident in which a person in the other car is injured,the type of insurance that would protect you from financial loss is

Correct AnswerverifiedShow Answer

Younger drivers,especially males,between the ages of 16 and 25 are more likely to get in accidents and therefore pay higher insurance premiums.

Correct AnswerverifiedShow Answer

People are more willing to purchase or increase their insurance coverage when

Correct AnswerverifiedShow Answer

The primary function of insurance is to

Correct AnswerverifiedShow Answer

Homeowner's insurance provides insurance in the event of property damage or personal liability relating to home ownership,but not theft.

Correct AnswerverifiedShow Answer

If your neighbor falls down the steps in your home and sues,you could be held responsible for her injuries.

Correct AnswerverifiedShow Answer

An umbrella policy is designed to cover

Correct AnswerverifiedShow Answer

The coverage that is designed to protect you if you cause an accident where the driver or passenger of the other car sustains injuries and sues you is called ________.

Correct Answerverifiedbodily inj...View AnswerShow Answer

Which of the following is considered personal property for home insurance coverage?

Correct AnswerverifiedShow Answer

Having liability coverage as part of auto and homeowner's policies helps protect your ________ in the event of an accident.

Correct AnswerverifiedShow Answer

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bodily inj...
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