Question 1.1. (TCO 4) _____ risks refer to uncertainties of direct and indirect losses to personal or real property due to fire, wind, accident, theft, and so on. (Points : 1)

Personal Business Speculative Liability Property

Question 2.2. (TCO 4) If you decide to install a new home security system with cameras, this is an example of _____ risk. (Points : 1)

shifting accepting transferring sharing reducing

Question 3.3. (TCO 4) Under a home insurance policy, which one of these examples would be covered? (Points : 1)

Hospital expenses for surgery Damage to another person's car when driving Accidental injury to a coworker on the job Wind damage to your roof Theft of business supplies from your office

Question 4.4. (TCO 4) An insurance claim that is filed as a result of high winds causing damage to trees, shrubs, and other plants would be covered under the _____ component of homeowner's insurance. (Points : 1)

building and other structures personal property additional living expenses personal liability property damage

Question 5.5. (TCO 4) Which of the following is not considered personal property for home insurance coverage? (Points : 1)

An automobile A garage Furniture Appliances A permanently installed air conditioning unit

Question 6.6. (TCO 4) State Farm has provided a quote to you for an umbrella policy. This type of policy provides coverage for (Points : 1)

expensive personal property. additional buildings on your property. property when traveling away from home. major personal liability suits. flood damage.

Question 7.7. (TCO 4) When obtaining a home insurance policy, you will find that most will already provide coverage for (Points : 1)

earthquake damage. flood damage. medical payments. personal property floaters. an umbrella liability.

Question 8.8. (TCO 4) If claims need to be settled based on the current replacement cost of a damaged or lost item less depreciation, then the _____ method should be used. (Points : 1)

replacement value actual cash value umbrella endorsement personal property floater

Question 9.9. (TCO 4) Your home insurance policy has a $250 deductible. If a small fire causes $900 of damage to your home, what amount of the claim would the insurance company pay? (Points : 1)

$250 $0 $900 $650 Not able to determine from this information

Question 10.10. (TCO 4) If Jason Haute is in an accident and he is able to collect medical expenses, lost wages, and related injury costs from his own insurance company, this is an example of (Points : 1)

assigned risk pool. financial responsibility coverage. comprehensive system. no-fault insurance. uninsured motorists protection.

Question 11.11. (TCO 4) The 50 in 100/300/50 refers to _____ coverage. (Points : 1)

collision bodily injury liability property damage liability medical payments comprehensive physical damage

Question 12.12. (TCO 4) Thad Joslin was judged at fault in an automobile accident. Three others were awarded damages of $145,000, $75,000, and $80,000. Thad has 100/300 bodily injury liability coverage. What amount, if any, would not be covered by his insurance? (Points : 1)

$45,000 $100,000 $75,000 None. The total amount would be covered by insurance. $50,000

Question 13.13. (TCO 4) Which is a correct statement about life insurance? (Points : 1)

People are less apt to actively seek life insurance than health insurance. Private sources are the only available sources for life insurance. Life insurance is extremely important if you are single and living alone. There is only one type of life insurance. Consumer awareness of life insurance has changed considerably over the years.

Question 14.14. (TCO 4) A two-earner couple likely will have (Points : 1)

the greatest need for life insurance. no need for life insurance. a moderate need for life insurance, especially if the couple has a mortgage. the greatest need for an annuity. the exact same life insurance needs as all other two-earner couples.

Question 15.15. (TCO 4) Using the nonworking spouse method, what should be the life insurance needs for a family whose youngest child is 7 years old? (Points : 1)

$50,000 $70,000 $90,000 $110,000 $140,000

Question 16.16. (TCO 4) The most common type of permanent life insurance is called (Points : 1)

whole life. term life. universal life. modified life. variable life.

Question 17.17. (TCO 4) All of the following are possible reasons for high and rising costs of healthcare except for (Points : 1)

the use of sophisticated and high-priced equipment. medical personnel who command high earnings. innovative but costly treatment for some illnesses. the increasing number and longevity of elderly people. the analysis and evaluation of medical costs over time.

Question 18.18. (TCO 4) In order to reduce your healthcare costs, you should do your best to (Points : 1)

live dangerously. gain a little extra weight. smoke and drink. stay well. not seek medical care.

Question 19.19. Which of the following statements is true? (Points : 1)

Physician expense insurance coverage normally includes visits to the doctor's office, x-rays, and lab tests. Basic health insurance coverage includes hospital expense insurance, surgical expense insurance, and physician expense insurance. A deductible provision requires the policyholder to pay a basic amount before the policy benefits begin. A good health insurance plan should impose no unreasonable exclusions. All of the above

Question 20.20. (TCO 4) If you have purchased a medical insurance policy with a very low deductible and the policy pays for hospital, surgical, medical, and other bills under one plan, this is a called a _____. (Points : 1)

low-cost policy. hospital indemnity policy long-term care insurance cancer insurance policy comprehensive major medical insurance policy