Question 1

All of the following statements about uninsured motorist coverage are true, except

Accepted Answer

A)   this coverage is recommended since many drivers are uninsured.
B)   it applies to accidents caused by a hit-and-run driver.
C)   it replaces bodily injury liability when you are at fault.
D)   it pays when a driver who is at fault has an insurance company that goes bankrupt. C

Question 2

If your car is in an accident with another person who has no auto insurance, which of the following statements is not correct?

Accepted Answer

A)   Your uninsured motorist coverage will cover you and your car.
B)   Many states in the U.S. will cover you and your car from their insurance fund.
C)   You are not covered if the accident was your fault.
D)   Both B and C are incorrect

Question 3

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  True

Question 4

The best way to reduce your homeowner's insurance premiums is to

Accepted Answer

A)   insure your home for only 60% of its value, since it is unlikely to be completely destroyed.
B)   drop coverage for medical payments.
C)   increase deductibles.
D)   eliminate liability coverage.

Question 5

Your car collides with a vehicle that has just run a red light, and your policy limits are 200/300/100. What is the maximum coverage under your policy for damages to the vehicle that you struck?

Accepted Answer

A)   $200,000
B)   $300,000
C)   $100,000
D)   zero

Question 6

A personal umbrella policy provides liability coverage to replace coverage that would normally be provided by an automobile or homeowner's policy.

Accepted Answer

A) True 
 B)False

Question 7

You have cash value coverage for your personal property on your homeowner's policy. A camera that cost you $300 eight years ago had a life expectancy of 10 years. The camera was stolen, and a new one will cost only $200. How much will the insurance company pay?

Accepted Answer

A)   $60
B)   $100
C)   $200
D)   $300

Question 8

Which of the following will not result in lower auto insurance premiums?

Accepted Answer

A)   Living in a rural area
B)   Driving a more expensive car
C)   Having a high FICO score
D)   All of the above will reduce your premiums.

Question 9

Property damage liability covers damages to your car from accidents that are your fault.

Accepted Answer

A) True 
 B)False

Question 10

Independent insurance agents

Accepted Answer

A)   work for just one insurance company.
B)   represent many different insurance companies.
C)   work for only two or three companies.
D)   are self-employed and represent their own companies.

Question 11

Which of the following would pay for medical care for people who were injured in your automobile as a result of an accident that was your fault?

Accepted Answer

A)   Medical payments coverage
B)   Bodily injury liability coverage
C)   Collision coverage
D)   Comprehensive coverage A

Question 12

During an unusually heavy rain, the basement of your house flooded and an antique dresser from the 1860s was destroyed. The dresser was originally purchased for $1,300 ten years ago and was recently appraised for $2,600; you recently received an offer from an antique collector for $3,100. Under a standard homeowner's policy, how much would you receive from your insurance company to cover this loss?

Accepted Answer

A)   zero
B)   $1,300
C)   $2,600
D)   $3,100

Question 13

Which of the following statements regarding auto insurance is not true?

Accepted Answer

A)   No-fault insurance programs do not hold a specific driver liable for causing an accident.
B)   Exaggerated personal injury claims do not result in additional insurance expenses.
C)   One reason for high auto insurance premiums is auto insurance fraud.
D)   If you own a car, you need to have auto insurance.

Question 14

Insurance protects you against potential financial losses or liability that result from unexpected events.

Accepted Answer

A) True 
 B)False

Question 15

Before you increase your homeowner's insurance deductible you should evaluate

Accepted Answer

A)   if you are going to have a claim in the next year or two.
B)   if you can afford to "self-insure" the deductible amount in the event of a loss claim.
C)   your auto insurance liability levels and liability deductible.
D)   Stop; it is never a good idea to increase your deductible.

Question 16

The most important reason to purchase an umbrella policy is

Accepted Answer

A)   supplement the liability coverage of your auto insurance policy.
B)   supplement the liability coverage of your homeowner's insurance policy.
C)   protect your net worth.
D)   A, B and C are all very important reasons.

Question 17

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)   homeowner's insurance.
C)   health insurance.
D)   auto insurance.

Question 18

Since insurance is a regulated industry, the rates for automobile policies are relatively the same among different companies operating in a state.

Accepted Answer

A) True 
 B)False

Question 19

The 100 in 100/300/50 refers to the

Accepted Answer

A)   property damage liability coverage.
B)   limit for bodily injury claims that can be paid to one person.
C)   amount of the deductible.
D)   total coverage for an accident.

Question 20

Lessening your exposure to an illness by getting periodic health checkups is an example of

Accepted Answer

A)   avoiding risks.
B)   reducing risks.
C)   accepting risks.
D)   transferring risks.

Exam 11: Auto and Homeowners Insurance

All of the following statements about uninsured motorist coverage are true, except

Correct Answer
verified
C

If your car is in an accident with another person who has no auto insurance, which of the following statements is not correct?

Correct Answer
verified

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 Answer
verified
True

The best way to reduce your homeowner's insurance premiums is to

Correct Answer
verified

Your car collides with a vehicle that has just run a red light, and your policy limits are 200/300/100. What is the maximum coverage under your policy for damages to the vehicle that you struck?

Correct Answer
verified

A personal umbrella policy provides liability coverage to replace coverage that would normally be provided by an automobile or homeowner's policy.

Correct Answer
verified

You have cash value coverage for your personal property on your homeowner's policy. A camera that cost you $300 eight years ago had a life expectancy of 10 years. The camera was stolen, and a new one will cost only $200. How much will the insurance company pay?

Correct Answer
verified

Which of the following will not result in lower auto insurance premiums?

Correct Answer
verified

Property damage liability covers damages to your car from accidents that are your fault.

Correct Answer
verified

Independent insurance agents

Correct Answer
verified

Which of the following would pay for medical care for people who were injured in your automobile as a result of an accident that was your fault?

Correct Answer
verified
A

Correct Answer
verified

Which of the following statements regarding auto insurance is not true?

Correct Answer
verified

Insurance protects you against potential financial losses or liability that result from unexpected events.

Correct Answer
verified

Before you increase your homeowner's insurance deductible you should evaluate

Correct Answer
verified

The most important reason to purchase an umbrella policy is

Correct Answer
verified

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 Answer
verified

Since insurance is a regulated industry, the rates for automobile policies are relatively the same among different companies operating in a state.

Correct Answer
verified

The 100 in 100/300/50 refers to the

Correct Answer
verified

Lessening your exposure to an illness by getting periodic health checkups is an example of

Correct Answer
verified

Exam 11: Auto and Homeowners Insurance

All of the following statements about uninsured motorist coverage are true, except

Correct AnswerverifiedC

If your car is in an accident with another person who has no auto insurance, which of the following statements is not correct?

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 AnswerverifiedTrue

The best way to reduce your homeowner's insurance premiums is to

Correct AnswerverifiedShow Answer

Your car collides with a vehicle that has just run a red light, and your policy limits are 200/300/100. What is the maximum coverage under your policy for damages to the vehicle that you struck?

Correct AnswerverifiedShow Answer

A personal umbrella policy provides liability coverage to replace coverage that would normally be provided by an automobile or homeowner's policy.

Correct AnswerverifiedShow Answer

You have cash value coverage for your personal property on your homeowner's policy. A camera that cost you $300 eight years ago had a life expectancy of 10 years. The camera was stolen, and a new one will cost only $200. How much will the insurance company pay?

Correct AnswerverifiedShow Answer

Which of the following will not result in lower auto insurance premiums?

Correct AnswerverifiedShow Answer

Property damage liability covers damages to your car from accidents that are your fault.

Correct AnswerverifiedShow Answer

Independent insurance agents

Correct AnswerverifiedShow Answer

Which of the following would pay for medical care for people who were injured in your automobile as a result of an accident that was your fault?

Correct AnswerverifiedA

Correct AnswerverifiedShow Answer

Which of the following statements regarding auto insurance is not true?

Correct AnswerverifiedShow Answer

Insurance protects you against potential financial losses or liability that result from unexpected events.

Correct AnswerverifiedShow Answer

Before you increase your homeowner's insurance deductible you should evaluate

Correct AnswerverifiedShow Answer

The most important reason to purchase an umbrella policy is

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

Since insurance is a regulated industry, the rates for automobile policies are relatively the same among different companies operating in a state.

Correct AnswerverifiedShow Answer

The 100 in 100/300/50 refers to the

Correct AnswerverifiedShow Answer

Lessening your exposure to an illness by getting periodic health checkups is an example of

Correct AnswerverifiedShow Answer

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified