Home insurance can provide repair or rebuilding payments which are based on one of four different alternative repair or replacement cost or cash value determination approaches. Which of the following is NOT included in these four approaches?

Replacement cost

Actual cost

Variable cost

Guaranteed cost

Extended cost

If you have a deductible of $1,000 dollars, and incur damages to your vehicle in an amount of $1,500 dollars. How much of the damage will your insurance provider cover?

$1,500

$1,000

$0

$500

None of the above

Which of the following are false statements?

1. Credit cards are safer to carry than cash

2. Credit cards are typically necessary to make reservations for hotels, airlines, and rental cars.

3. Credit card holders typically have lower interest rates than non-credit card holders because there is no collateral securing them.

4. Interest paid on credit card debt is deductible for income taxpurposes.

5. The five Cs of credit are: character, capital, collateral, capacity,and conditions.

6. The three major credit agencies are: Experian, Transunion, and Credit Report Corp.

The value of which of the following should be included on your estimate of insurable value when insuring property?

Dwelling

Land

Property in the dwelling

A and C only

A, B, and C

Elaine lives in Kentucky and needs to borrow money fast, so she decides to get a payday loan. She wants to borrow $300 and will repay the loan back in 14 days. The fee for the loan is $45.00. What would Elaines rate be (rounded up)? Select the closest answer.

391.65%

500.00%

350.90%

404.17%

None of the above

Which of the following does the Fair Credit Reporting Act NOT provide?

Provides a requirement that prevents your information from being shared with marketers.

Provides you with the right, upon request, to receive one free copy of your credit report from each of the three consumer credit reporting agencies.

Provides consumers with the right to have an investigation if the file contains inaccurate information

A and C only

All of the above are provided in the Act

Considering that according to a study the price of the average new car exceeds $30,000, a minimum of _________ in property damage liability is generally recommended.

$25,000

$15,000

$50,000

$30,000

None of the Above

Which of the following is NOT true?

The standard homeowner insurance policy does not typically cover or provide protection for damage resulting from earthquakes.

Insurers can only file an issue with the CLUE database when the homeowner files a claim.

There are several strategies to reduce the premium on a home insurance policy including: installing security devices, increasing your deductible, good credit rating, customer loyalty and being a non-smoking client.

Replacement cost insurance coverage provides payment of actual costs to replace, rebuild or purchase a home or property without a deduction for depreciation for age, wear and tear.

Toms taxable health benefit is valued at $550. If Tom is in the 35% tax bracket what is Tom's after tax equivalent health benefit?

$1,571.43

$357.50

$192.50

$846.15

None of the Above

Which of the following provides payment for services regardless of the service provided?

Managed Care Plans

Indemnity Plans

HMOs

PPOs

None of the above

Employers offer group healthcare insurance plans because

They provide a way to keep employees healthy and on the job.

They wish to be nice to their employees no matter the cost.

Group healthcare insurance spreads risk across individuals

Both A and C

A, B, and C

Which of the following types of life insurance is NOT a cash value policy?

Whole Life

Variable Life

Term Life

Single Premium Life

None of the above

There are two basic forms of credit that can be provided by lenders. These include

In and Out credit

Up and Down credit

Start and End credit

Open-End and Closed-End credit

Lender and Spender credit

Motor vehicle insurance provides three basic forms of coverage - two of these are

Property

Liability

Accidental

Both A and B

Both A and C

Which of the following affect auto premiums?

Credit Rating

Make/model of the car

Geographic area

B and C only

All of the above

If John takes a single payment discount loan and receives $5,000, What is his Usable Funds amount if he is paying 12% on the loan?

$5,000

$4,000

$4,400

$4,500

None of the Above

While all of the following may be reasons, according to the Federal Reserve, the primary reasons for a personal inquiry into a credit report appear to occur when

Making new large purchases

Verifying information when looking for a job

Checking on the reliability of the report

Checking when there is as suspicion of fraud and/or Identity theft

Both A and C

Flood protection is not normally covered by a standard home policy and must be obtained separately. It can be obtained from

Private Insurers

The state of residence

Public agencies such as FEMA

Both A and C

Both B and C