1. (TCO 4) If a home inspection reveals defective house wiring, then this is an example of a (Points : 1) 
        threat.
        peril.
        risk.
        speculation.
        hazard.

    
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) If a homeowner does not clear ice from stairs for a delivery person in a timely manner, this may result in a case of: (Points : 1) 
        vicarious liability.
        negligence.
        assigned risk.
        umbrella coverage.
        coinsurance.

    
Question 4. 4. (TCO 4) If a worker damages your home while painting several rooms, and you take action against the worker's employer to cover the cost of the damage, this is an example of a(n) _____ liability. (Points : 1) 
        umbrella
        vicarious
        common situation
        peril
        assigned

    
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) Renter's insurance covers all but which of the following? (Points : 1) 
        Medical expenses for injuries to visitors
        Cost of legal action due to personal liability
        Additional living expenses
        Accidental damage to the property of others
        Fire damage of the building's roof

    
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) If you are in an automobile accident for which you were responsible, and you have _____ coverage within an insurance policy, this covers the risk of financial loss due to legal expenses, medical expenses, lost wages, and other expenses associated with injuries caused by an automobile accident for which you were responsible. (Points : 1) 
        medical payments
        comprehensive insurance
        uninsured motorists protection
        no-fault insurance
        bodily injury liability

    
Question 10. 10. (TCO 4) _____ coverage pays for medical care for people who were injured in your automobile. (Points : 1) 
        Comprehensive
        Bodily injury liability
        Collision
        Medical payments
        No-fault insurance

    
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) You probably have little or no need for life insurance if you are (Points : 1) 
        a single person living alone or with parents.
        divorced and have two children.
        married and your spouse works.
        gainfully employed.
        a household with several children.

    
Question 15. 15. (TCO 4) Your annual income is $35,000. What is your life insurance need based on the easy method? (Points : 1) 
        $35,000
        $110,500
        $171,500
        $191,500
        Over $200,000

    
Question 16. 16. (TCO 4) Which type of life insurance policy combines term insurance and investment elements? (Points : 1) 
        Whole life
        Ordinary life
        Universal life
        Adjustable life
        Extended life

    
Question 17. 17. (TCO 4) All of the following are innovative ways that concerned groups are containing healthcare costs except for (Points : 1) 
        the establishment of incentives to encourage preventive care.
        encouraging the use of prepaid group practices.
        the establishment of community education programs so people can learn to take better care of themselves.
        encouraging doctors to pay cash for routine medical costs.
        picketing at hospitals and physician offices.

    
Question 18. 18. (TCO 4) A growing number of students have been without health insurance because typically (Points : 1) 
        insurance companies refuse to insure them.
        students are young and healthy.
        an older student population is not covered by family policies.
        students don't care if they get sick.
        students don't need health insurance.

    
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

    


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