FINA 3125 Test 2 Name MULTIPLE CHOICE. Choose the one alternative that best completes the state ment or answers the question. 1) Which of the following is not a characteristic of group insurance provided by an employer? 1) A) Many persons are covered under one B) Employers canunot require employees to share in the cost C) Evidence of insurability usually is not required D) Volume discount results in a lower cost for the coverage. contract. 2) The PAP's Other than Collision Coverage would pay for: I. Running off the road and into a lake . Hitting a deer ml. Hitting a chicken, losing control of your car as a result, and crashing into a ditch IV. Having a non-war-related missile land on top of your car V. Having your car stolen VI. Having your car vandalized by someone you broke up with A) T, III. IV, V, and VI only C) II, IV, V, and VI only B) ll, . V, and VI only D) All of the above (l, ll, Ill, IV, V, and VI) 3) Annette lives in New Jersey, and has a PAP with the minimum limits of liability required by law in 3) this state, which are 15/30/5. She drives to New York 25/50/10, where the minimum limits of liability are 50/100/25. While in Alaska, she cause an accident. What is the most that her PAP will pay for the damages she caused others to sufferi? A) 15/30/10 B) 25/50/5 C) 25/50/10 D) 15/30/5 4) Jackson has purchased Liability coverage limits of 50/100/50 on his PAP. He has an accident and 4) finds himself liable for damages awarded in the following order: Bodily injury to A $50,000 Bodily injury to B- $20,000 Bodily injury to C-$50,000 Property Damage to D- $40,000 Which of the following is true? A) Jackson's insurer will pay $40,000 to D. B) Jackson's insurer will pay 30,000 to C C) Jackson's insurer will pay $50,000 to A, $20,000 to B, and $50,000 to C. D) Jackson's insurer will pay nothing to A. 5) 5) John has an auto which is covered for collision losses subject to a $250 deductible. Kate's auto also has collision coverage but her deductible is $500. Which of the following statements describes how a $2,000 collision loss will be paid if it occurs when John borrows Kate's car because his car is in the shop for repairs? A) Kate's policy will pay $1,500, and John's policy will pay $250. B) John's policy will pay $1,500, and Kate's policy will pay nothing. C) John's policy will pay $1,750, and Kate's policy will pay nothing. D) Kate's policy will pay $1,750, and John's policy will pay nothing 6) 6) An HMO physician who determines if medical care from a specialist is necessary is called a(n) A) internist C) capitator B) gatekeeper. D) network facilitator. B-1 FINA 3125 Test 2 Name MULTIPLE CHOICE. Choose the one alternative that best completes the state ment or answers the question. 1) Which of the following is not a characteristic of group insurance provided by an employer? 1) A) Many persons are covered under one B) Employers canunot require employees to share in the cost C) Evidence of insurability usually is not required D) Volume discount results in a lower cost for the coverage. contract. 2) The PAP's Other than Collision Coverage would pay for: I. Running off the road and into a lake . Hitting a deer ml. Hitting a chicken, losing control of your car as a result, and crashing into a ditch IV. Having a non-war-related missile land on top of your car V. Having your car stolen VI. Having your car vandalized by someone you broke up with A) T, III. IV, V, and VI only C) II, IV, V, and VI only B) ll, . V, and VI only D) All of the above (l, ll, Ill, IV, V, and VI) 3) Annette lives in New Jersey, and has a PAP with the minimum limits of liability required by law in 3) this state, which are 15/30/5. She drives to New York 25/50/10, where the minimum limits of liability are 50/100/25. While in Alaska, she cause an accident. What is the most that her PAP will pay for the damages she caused others to sufferi? A) 15/30/10 B) 25/50/5 C) 25/50/10 D) 15/30/5 4) Jackson has purchased Liability coverage limits of 50/100/50 on his PAP. He has an accident and 4) finds himself liable for damages awarded in the following order: Bodily injury to A $50,000 Bodily injury to B- $20,000 Bodily injury to C-$50,000 Property Damage to D- $40,000 Which of the following is true? A) Jackson's insurer will pay $40,000 to D. B) Jackson's insurer will pay 30,000 to C C) Jackson's insurer will pay $50,000 to A, $20,000 to B, and $50,000 to C. D) Jackson's insurer will pay nothing to A. 5) 5) John has an auto which is covered for collision losses subject to a $250 deductible. Kate's auto also has collision coverage but her deductible is $500. Which of the following statements describes how a $2,000 collision loss will be paid if it occurs when John borrows Kate's car because his car is in the shop for repairs? A) Kate's policy will pay $1,500, and John's policy will pay $250. B) John's policy will pay $1,500, and Kate's policy will pay nothing. C) John's policy will pay $1,750, and Kate's policy will pay nothing. D) Kate's policy will pay $1,750, and John's policy will pay nothing 6) 6) An HMO physician who determines if medical care from a specialist is necessary is called a(n) A) internist C) capitator B) gatekeeper. D) network facilitator. B-1