Question 1

If your car is in an accident with another person who has no auto insurance,which of the following statements is not correct?

Accepted Answer

A)   Your uninsured motorist coverage will cover you and your car.
B)   Many states in the U.S. will cover you and your car from their insurance fund.
C)   You are not covered if the accident was your fault.
D)   Both B and C are incorrect

Question 2

Homeowners insurance premiums are heavily influenced by all of the following except

Accepted Answer

A)   number of children who live in the home.
B)   amount of the deductible.
C)   location of the residence.
D)   degree of protection desired.

Question 3

Underwriters for an insurance company do not

Accepted Answer

A)   market insurance policies.
B)   calculate the risks of specific policies.
C)   decide what insurance policies to offer.
D)   decide what premiums to charge.

Question 4

Some credit cards provide you with collision and comprehensive insurance benefits if you use that card to pay for car rentals.

Accepted Answer

A) True 
 B)False

Question 5

Collision and comprehensive coverage is optional in most states unless you are financing your car in which case you must have this coverage to protect the lender.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not covered in a standard homeowner's policy?

Accepted Answer

A)   Lightning hits your house and it burns to the ground.
B)   Your house is broken into and all the furniture is stolen.
C)   The river near your house overflows its bank and washes your house away.
D)   A hailstorm damages the roof of your house.

Question 7

The liability component of your homeowner's policy will cover all of the following situations except one.Which situation will not be covered?

Accepted Answer

A)   Your dog bites a guest and the guest sues you.
B)   While your accountant is visiting you, she trips on your carpet and sues you.
C)   Your neighbor who thinks you have promised to trim a tree in his yard sues you for not doing it.
D)   An uninvited salesman walking up your sidewalk trips and falls. He sues you.

Question 8

The ________ is the amount that you will need to pay if your car is damaged in an accident that was your fault.

Accepted Answer

The answer of The ________ is the amount that you...

Question 9

A cash value home insurance policy pays the actual costs of replacing the damaged property.

Accepted Answer

A) True 
 B)False

Question 10

The additional living expenses component of a homeowner's policy is designed to

Accepted Answer

A)   pay for temporary housing while your home is repaired from covered damage.
B)   cover damage to your property while you are away from home.
C)   reimburse a homeowner for damage done by a visitor.
D)   pay for medical expenses or people injured on your property.

Question 11

A personal umbrella policy provides liability coverage to replace coverage that would normally be provided by an automobile or homeowner's policy.

Accepted Answer

A) True 
 B)False

Question 12

All of the following actions are possible ways to reduce your homeowner's insurance,except

Accepted Answer

A)   installing better locks or a security system.
B)   not making small claims against your policy.
C)   changing insurance companies whenever you renew your policy.
D)   shopping around and getting quotes from several companies.

Question 13

Which of the following statements is not true concerning comprehensive and collision insurance?

Accepted Answer

A)   If you are financing a car, this insurance is required by the lender.
B)   Financially, it is advisable to take out the lowest deductible possible.
C)   You may want to drop this coverage on an older car that is not being financed.
D)   The deductible is really a form of self insurance.

Question 14

The insurance agent's role includes all of the following,except for

Accepted Answer

A)   assessing the client's risk of loss.
B)   assisting the client in determining the amount of insurance they may need.
C)   working with the insurance company to prepare the client's insurance policy.
D)   assisting the client in filing a claim for coverage.

Question 15

The insurance that will cover your possessions if you lease an apartment is called ________.

Accepted Answer

The answer of The insurance that will cover your possessions...

Question 16

Property damage liability covers damages to your car from accidents that are your fault.

Accepted Answer

A) True 
 B)False

Question 17

Most states have financial responsibility laws that require individuals who drive cars to purchase a minimum amount of liability insurance.

Accepted Answer

A) True 
 B)False

Question 18

Auto insurance rates are based upon all of the following except your

Accepted Answer

A)   age.
B)   height and weight.
C)   driving record.
D)   gender.

Question 19

Use the following two columns of items to answer the matching questions below:
-deductible

Accepted Answer

A)  requires individuals who drive cars to purchase a minimum amount of liability insurance
B)  pays for injuries to you or people in your car in an accident where you (the driver)  are at fault
C)  a set dollar amount that you are responsible for paying before any coverage is provided by your insurer
D)  covers damage to your car as a result of theft, fire, vandalism, or various other events
E)  vehicle insurance to cover various injuries, your property, and the property of othersF) covers damage to your car when you are at fault in an accident

Question 20

All of the following may qualify so an applicant for an auto insurance discount,except

Accepted Answer

A)   making high grades.
B)   completing a driver's training program.
C)   having several cars insured with the same company.
D)   being under 25 years old.

Exam 11: Auto and Homeowners Insurance

The additional living expenses component of a homeowner's policy is designed to

Correct AnswerverifiedShow Answer

All of the following may qualify so an applicant for an auto insurance discount,except

Correct AnswerverifiedShow Answer

Which of the following is not covered in a standard homeowner's policy?

Correct AnswerverifiedShow Answer

Property damage liability covers damages to your car from accidents that are your fault.

Correct AnswerverifiedShow Answer

Use the following two columns of items to answer the matching questions below: -deductible

Correct AnswerverifiedShow Answer

The liability component of your homeowner's policy will cover all of the following situations except one.Which situation will not be covered?

Correct AnswerverifiedShow Answer

The insurance agent's role includes all of the following,except for

Correct AnswerverifiedShow Answer

The insurance that will cover your possessions if you lease an apartment is called ________.

Correct AnswerverifiedShow Answer

Some credit cards provide you with collision and comprehensive insurance benefits if you use that card to pay for car rentals.

Correct AnswerverifiedShow Answer

Which of the following statements is not true concerning comprehensive and collision insurance?

Correct AnswerverifiedShow Answer

Collision and comprehensive coverage is optional in most states unless you are financing your car in which case you must have this coverage to protect the lender.

Correct AnswerverifiedShow Answer

Most states have financial responsibility laws that require individuals who drive cars to purchase a minimum amount of liability insurance.

Correct AnswerverifiedShow Answer

The ________ is the amount that you will need to pay if your car is damaged in an accident that was your fault.

Correct AnswerverifiedShow Answer

Auto insurance rates are based upon all of the following except your

Correct AnswerverifiedShow Answer

If your car is in an accident with another person who has no auto insurance,which of the following statements is not correct?

Correct AnswerverifiedShow Answer

Underwriters for an insurance company do not

Correct AnswerverifiedShow Answer

A personal umbrella policy provides liability coverage to replace coverage that would normally be provided by an automobile or homeowner's policy.

Correct AnswerverifiedShow Answer

All of the following actions are possible ways to reduce your homeowner's insurance,except

Correct AnswerverifiedShow Answer

Homeowners insurance premiums are heavily influenced by all of the following except

Correct AnswerverifiedShow Answer

A cash value home insurance policy pays the actual costs of replacing the damaged property.

Correct AnswerverifiedShow Answer

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