Question 1

If Peter caused an accident,and his passenger,John,had to miss work for a month while he recovered,Peter's bodily injury liability coverage could cover medical expenses and loss of income for John.

Accepted Answer

A) True 
 B)False

Question 2

Use specific examples to discuss whether it is justifiable that government sets rules for requiring people to have liability insurance coverage.Should individuals be allowed to choose whether or not they are prepared to accept risk? When,if ever,is it justifiable for government to impose regulations on this?

Accepted Answer

Many possibilities,however,the most obvi...

Question 3

If your neighbour falls down the steps in your home and sues you for damages,you could be held responsible to pay compensation for his or her injuries and rehabilitation.

Accepted Answer

A) True 
 B)False

Question 4

More than sixty percent of homeowner's insurance premiums go towards settling claims.

Accepted Answer

A) True 
 B)False

Question 5

In the context of insurance,the term liability is used to mean that you may be required to pay someone for damages that you caused.

Accepted Answer

A) True 
 B)False

Question 6

For auto insurance,which area has the highest level of insurance coverage required by law?

Accepted Answer

A)  Comprehensive coverage
B)  Accident benefits coverage
C)  Uninsured motorist coverage
D)  Third party liability coverage

Question 7

Consider the loss from fire damage of furniture which cost $6000 thee years ago and has an expected life of ten years.This furniture would cost $9000 to purchase today.Under a replacement cost policy,how much would the insurance company pay you for this loss?

Accepted Answer

A)  $6000.
B)  $9000.
C)  $4200.
D)  $6300.

Question 8

How much coverage would be provided under a standard homeowner's cash value policy which deems furniture to be fully depreciated in ten years,if your antique dresser from the 1860s is destroyed by fire? You purchased the dresser eleven years ago for $1300 and it was recently appraised at $2600,and you have an offer from an antique collector to purchase it for $3100.

Accepted Answer

A)  $0
B)  $1300
C)  $2600
D)  $3100

Question 9

A 46-inch HDTV originally purchased for $5000 has a life expectancy of seven years.It is five years old and has been destroyed in a fire.Today a similar TV would cost $2100.Your cash value policy will

Accepted Answer

A)  pay you $2100 to replace it with a similar model available now.
B)  pay you the $5000 original purchase price.
C)  pay you $1429 as settlement in full.
D)  pay you the accumulated depreciation value of $3571.

Question 10

To significantly reduce your automobile insurance premiums and still have adequate coverage,you should

Accepted Answer

A)  take the minimum levels of liability coverage.
B)  raise the deductibles on comprehensive and collision.
C)  waive medical payments coverage.
D)  waive uninsured motorist coverage.

Question 11

Insurance agents for an insurance company

Accepted Answer

A)  market insurance policies.
B)  calculate the risks of specific policies.
C)  decide what insurance policies to offer.
D)  decide what premiums to charge.

Question 12

Which of the following is the best case for the need for third party liability insurance coverage?

Accepted Answer

A)  You cause a car accident and damage your Honda Civic.
B)  You cause a car accident and destroy the other driver's Maserati.
C)  You cause a car accident which disables a pedestrian.
D)  You cause a car accident and the injuries cause you to miss six months of work.

Question 13

Legal expenses incurred by an insurance company when defending you against a lawsuit are deducted from your limits of liability coverage.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following actions is a suggestion to reduce your homeowner's insurance?

Accepted Answer

A)  Install better locks or a security system.
B)  Make prompt small claims against your policy.
C)  Compare rates and change insurance companies whenever you find better rates.
D)  Stay with one insurance company throughout your life.

Question 15

Which of the following is True about pure no-fault insurance?

Accepted Answer

A)  No one is deemed to be at fault when an accident occurs.
B)  You cannot sue the at-fault driver for pain and suffering and economic loss.
C)  It is the most cost effective insurance because there are no legal expenses.
D)  The dollar value of accident benefits is much lower.

Question 16

Since insurance companies rely mostly on their premiums to cover claims,they price their insurance policies to reflect the probability of a claim and the size of the claim.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is True of tenants insurance?

Accepted Answer

A)  You only need to buy it if you have possessions of considerable value.
B)  It will not cover you if a visitor sues you for an injury received in your apartment.
C)  It covers only your own property,not the property of your landlord.
D)  Because premiums are low,most people who need it have renter's insurance.

Question 18

Which of the following statements is True concerning comprehensive and collision insurance?

Accepted Answer

A)  If you are financing a car,this insurance is required by the lender.
B)  Financially,it is advisable to take out the lowest deductible possible.
C)  If you were in an accident,this coverage could enable you to replace your older car with a new one.
D)  The deductible is really a form of transferring insurance.

Question 19

Underwriters for an insurance company

Accepted Answer

A)  calculate the risks of specific insurance requests from the public.
B)  market insurance policies.
C)  recommend insurance policies that fit customers' needs.
D)  invest the premiums of policies to make their company a profit.

Question 20

Comprehensive coverage would cover financial losses due to

Accepted Answer

A)  damage to your car caused by a hit and run collision.
B)  damage to your car in an accident for which you were at fault.
C)  damage to your car caused by wind or hail.
D)  damage to a neighbour's fence caused by your car.

Exam 8: Protecting Your Wealth - Auto and Homeowner's Insurance

If Peter caused an accident,and his passenger,John,had to miss work for a month while he recovered,Peter's bodily injury liability coverage could cover medical expenses and loss of income for John.

Correct Answer
verified

Comprehensive coverage would cover financial losses due to

Correct Answer
verified

In the context of insurance,the term liability is used to mean that you may be required to pay someone for damages that you caused.

Correct Answer
verified

Since insurance companies rely mostly on their premiums to cover claims,they price their insurance policies to reflect the probability of a claim and the size of the claim.

Correct Answer
verified

Legal expenses incurred by an insurance company when defending you against a lawsuit are deducted from your limits of liability coverage.

Correct Answer
verified

A 46-inch HDTV originally purchased for $5000 has a life expectancy of seven years.It is five years old and has been destroyed in a fire.Today a similar TV would cost $2100.Your cash value policy will

Correct Answer
verified

To significantly reduce your automobile insurance premiums and still have adequate coverage,you should

Correct Answer
verified

More than sixty percent of homeowner's insurance premiums go towards settling claims.

Correct Answer
verified

Which of the following is True about pure no-fault insurance?

Correct Answer
verified

Consider the loss from fire damage of furniture which cost $6000 thee years ago and has an expected life of ten years.This furniture would cost $9000 to purchase today.Under a replacement cost policy,how much would the insurance company pay you for this loss?

Correct Answer
verified

Underwriters for an insurance company

Correct Answer
verified

Which of the following is the best case for the need for third party liability insurance coverage?

Correct Answer
verified

Correct Answer
verified
Many possibilities,however,the most obvi...
View Answer

If your neighbour falls down the steps in your home and sues you for damages,you could be held responsible to pay compensation for his or her injuries and rehabilitation.

Correct Answer
verified

Correct Answer
verified

Insurance agents for an insurance company

Correct Answer
verified

Which of the following statements is True concerning comprehensive and collision insurance?

Correct Answer
verified

Which of the following is True of tenants insurance?

Correct Answer
verified

Which of the following actions is a suggestion to reduce your homeowner's insurance?

Correct Answer
verified

For auto insurance,which area has the highest level of insurance coverage required by law?

Correct Answer
verified

Exam 8: Protecting Your Wealth - Auto and Homeowner's Insurance

If Peter caused an accident,and his passenger,John,had to miss work for a month while he recovered,Peter's bodily injury liability coverage could cover medical expenses and loss of income for John.

Correct AnswerverifiedShow Answer

Comprehensive coverage would cover financial losses due to

Correct AnswerverifiedShow Answer

In the context of insurance,the term liability is used to mean that you may be required to pay someone for damages that you caused.

Correct AnswerverifiedShow Answer

Since insurance companies rely mostly on their premiums to cover claims,they price their insurance policies to reflect the probability of a claim and the size of the claim.

Correct AnswerverifiedShow Answer

Legal expenses incurred by an insurance company when defending you against a lawsuit are deducted from your limits of liability coverage.

Correct AnswerverifiedShow Answer

A 46-inch HDTV originally purchased for $5000 has a life expectancy of seven years.It is five years old and has been destroyed in a fire.Today a similar TV would cost $2100.Your cash value policy will

Correct AnswerverifiedShow Answer

To significantly reduce your automobile insurance premiums and still have adequate coverage,you should

Correct AnswerverifiedShow Answer

More than sixty percent of homeowner's insurance premiums go towards settling claims.

Correct AnswerverifiedShow Answer

Which of the following is True about pure no-fault insurance?

Correct AnswerverifiedShow Answer

Consider the loss from fire damage of furniture which cost $6000 thee years ago and has an expected life of ten years.This furniture would cost $9000 to purchase today.Under a replacement cost policy,how much would the insurance company pay you for this loss?

Correct AnswerverifiedShow Answer

Underwriters for an insurance company

Correct AnswerverifiedShow Answer

Which of the following is the best case for the need for third party liability insurance coverage?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedMany possibilities,however,the most obvi...View AnswerShow Answer

If your neighbour falls down the steps in your home and sues you for damages,you could be held responsible to pay compensation for his or her injuries and rehabilitation.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Insurance agents for an insurance company

Correct AnswerverifiedShow Answer

Which of the following statements is True concerning comprehensive and collision insurance?

Correct AnswerverifiedShow Answer

Which of the following is True of tenants insurance?

Correct AnswerverifiedShow Answer

Which of the following actions is a suggestion to reduce your homeowner's insurance?

Correct AnswerverifiedShow Answer

For auto insurance,which area has the highest level of insurance coverage required by law?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Many possibilities,however,the most obvi...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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