7

Which factors would increase your automobile insurance premiums? I. You live in a large city II. You use your car for recreational purposes only III. You are 20 years old IV. You have an excellent driving record

Points: 1

I and III, only

I and II, only

II and IV, only

III and IV, only

8

If you are in an auto accident, you should contact the police immediately if which of the following apply? I. There is significant property damage II. There is car damage III. The driver is drunk IV. Someone is hurt

Points: 1

I, III, and IV, only

I, II and IV, only

I, II, III and IV

III and IV, only

9

Which describes a homeowner's insurance policy that covers damage to the home with a replacement cost policy?

Points: 1

The policy pays the homeowner the value of the damaged property after considering the amortization on the mortgage.

The policy pays the homeowner the cost of replacing the damaged property with an item of similar brand and quality, with the damaged property normally replaced at the same value as the depreciated value.

The policy pays the homeowner the cost of replacing the damaged property with an item of similar brand and quality, with the damaged property normally replaced at a higher value than the depreciated value.

The policy pays the homeowner the value of the damaged property after considering its depreciation.

10

Which definition of disability provides benefits if you are unable to perform the duties required by your regular occupation?

Points: 1

"Preferred" occupation

"Any" occupation

"Regular" occupation

"Critical" occupation

11

Which is an advantage of whole life insurance?

Points: 1

1. Suitable for short-term insurance needs or specific liabilities like a mortgage.
2. Has cash values that can be borrowed.
3. Provides more immediate protection as it is less expensive than other insurances.
4. Can be converted to permanent insurance without medical evidence.

12

Which is not a standard feature of a life insurance policy?

Points: 1

1. Deductible
2. Loans
3. Grace Period
4. Reinstatement

13

Even if your liquidity needs are covered, investment in which type of security would help you to maintain a low level of portfolio risk?

Points: 1

1. Real estate
2. Money market securities
3. Preferred stocks
4. Common stocks