You have a convertible that you only drive during the summer months. You keep it parked in the garage during the winter months. To save money on insurance, you have decided to cancel insurance coverage on this car during the winter. What coverage should you not cancel?
Possible Answers
your 100/300/100 liability coverage.
your $500 comprehensive damage coverage.
your $1000 collision damage coverage.
your underinsured and uninsured motorist coverage.
2.
You have just had the following items stolen from your home. Which of the item(s) of personal property wouldnot have been covered with HO insurance?
Possible Answers
stereo
jewelry
baseball cards
important papers
clothes
Score:
1/1
3.
What should a 20 year old man consider when he is thinking about purchasing a new car with a 10% down payment and financing the rest?
Possible Answers
The lender will require full coverage insurance on the car used as collateral.
Because of his demographics, he will pay higher rates for car insurance.
The type of car he purchases could have a dramatic impact on the cost of his insurance.
all of these are correct.
All but The lender will require full coverage insurance on the car used as collateral are correct.
Score:
0/1
4.
Suppose that you just purchased a policy that provided excess liability insurance protection against lawsuits and judgments for $5 million. This policy is most commonly called a(n)
Possible Answers
excess policy.
personal umbrella policy.
litigation protection policy.
excess liability policy.
none of these
Score:
1/1
5.
Your collision and comprehensive coverage decision should be directly related to the deficiency payments clause in your Automobile loan.
Possible Answers
True
False
6.
A lower insurance credit score generally results in lower homeowner's insurance rates.
Possible Answers
True
False
7.
Who will most likely pay the least for automobile insurance for the identical car?
Possible Answers
A 20 year old man with a good credit score and driving record.
A 55 year old woman with two drunk driving arrests.
A 32 year old married man with bad credit and a bad driving record.
A 29 year old woman who drives 50,000 miles per year and lives in a big city.
8.
What are good ways to keep the cost of Homeowners insurance down?
Possible Answers
Pay your premiums once per year.
Be self insured for the smaller losses.
Maintain a good credit score.
all of these are correct.
All but Maintain a good credit score are correct.
Score:
1/1
9.
Toldae and Natasha were driving their friends home when they rear-ended another car. They are worried about paying for the medical bills and possibly getting sued. Who will be covered under their Part B: Medical expense coverage?
Possible Answers
Toldae, Natasha, and the people in the car they hit
Toldae, Natasha, and their friends
their friends and the people in the other car
the driver and their friends
the driver and the people in the other car
10.
Your home and property have a market value of $200,000. Since you want to make sure that you meet the coinsurance provisions, you should have at least ________ of insurance.
Possible Answers
$160,000
$180,000
$200,000
$220,000
none of these
Score:
1/1
11.
If you find that your car has been damaged by a hit and run driver in the parking lot, you should not call the police since there were no witnesses.
Possible Answers
True
False
Score:
1/1
12.
You have liability only coverage on your car. It was damaged in the parking lot by a hit and run driver. What coverage do you have for your damages?
Possible Answers
Their collision coverage.
Their liability coverage.
Your liability coverage.
none of these.
Score:
0/1
13.
Your neighbors started a fire in their apartment, causing smoke and water damage to your possessions. Their Renters Insurance will cover your possessions.
Possible Answers
True
False
Score:
1/1
14.
You had several of your son's friends over last night for a "sleepover." While dropping off their child, one of the parents did not see the basketball hoop and smashed it beyond repair with their car. Where would you look for damage payment?
Possible Answers
their homeowner's insurance
section II of their homeowner's insurance
your guest's automobile liability coverage
your guest's automobile comprehensive insurance
your guest's automobile collision insurance
Score:
1/1
15.
Your backyard shed was damaged by a windstorm. Your coverage is based under Coverage D: Loss of Use.
Possible Answers
True
False
Score:
1/1
16.
An attached garage is covered under Coverage B: Other structures.
Possible Answers
True
False
17.
What type of auto insurance protects you in the case of accident regardless of who is at fault?
Possible Answers
no-cause insurance
no-fault insurance
no-litigation insurance
cause-free insurance
none of these
18.
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. They are involved with the
Possible Answers
inflation guard.
added liability.
replacement cost.
coinsurance provision.
70 percent rule.
19.
The purpose of Coverage D: Loss of Use is to reimburse you for
Possible Answers
the cost of living in a temporary location until your home is repaired.
the cost of utility bills at your home until it is repaired.
the loss of income from business pursuits on your property.
both the cost of living in a temporary location until your home is repaired and the loss of income from business pursuits on your property
none of these
Score:
1/1
20.
Which of the following is not a consideration in determining the amount of homeowner's insurance a person needs?
Possible Answers
Cover the entire replacement cost in the event of a complete loss.
Match the insurance coverage of similar homes in your neighborhood.
Protect against the effect of inflation eroding away your coverage.
Purchase flood or earthquake coverage if you are in one of these areas.
Determine if detached structures are adequately covered under standard policies.
