Quiz 3

Multiple choice- if your have an outstanding loan on your car the contract will require you to carry ______ insurance

collision or comprehensive insurance

Multiple choice-if a term life insurance is convertible the policy can be....

converted it to a comparable whole life policy

Multiple choice- a liability suite result when....

dog bites your neighbor

Multiple choice-the primary purpose of life insurance is to provide....

for your dependence

Multiple choice- the principle of ___________states that an insured should not be compensated by an insurance company in an amount exceeding the economic lose

indemnity

Multiple choice- a ________agent represents multiple insurance companies

independent agent

Multiple choice- the asset most likely to be specifically itemized in a property insurance endorsement

jewelry

Multiple choice-the insurance design to help a nursing home or in home care due to chronic illness is called...

long-term care(LTC)

Multiple choice-workers comp. is a state program the provides benefits for....

only b and d(workers injured on the job and if you get hurt because your employer did something)

Multiple choice- collision protection pays for damage to what?

protection of the auto of the insurer

Multiple choice-disability income insurance provides health benefits that are designed to...

substitute for lost income

Multiple choice- section 1 of the homeowners insurance policy covers what?

the home and it's contents

Multiple choice- section 2 covers what?

the liability of the insurer

Multiple choice-insurance underwriting is best described as...

the process used by insurers to decide who can be insured and to determine applicable rates that will be charged for premiums

if your employment is terminated cobra provides for...

the temporary continuation of group insurance benefits and you pay the premium

11. Social security alone (will/will NOT) provide a comfortable state of living after retirement

will not

10. if your furniture in your apartment is destroyed by fire it (would/would not) by covered by your landlord

would not

completion: when selling you a homeowners policy, your insurance agent should suggest you prepare.......

(a personal property inventory)

completion: during the past few decades the % of our income as a nation that we spend on healthcare has...

(increased)

completion: the principle of__________stated that the insurer may not be compensated by the insurance company over the economic loss

(indemnity)

completion: the majority of term policies have a level or decreasing face value. Which one is the majority of policies?

(level)

completion: an activity that reduces the chance that a loss will occur is

(loss prevention)

completion: failure to act in a reasonable manner or not be stupid is....

(negligence)

completion: bill was the at fault party when you collided. Your insurance company paid for your car. It intends to recover the money from bill. What is that called...

(subrogation)

completion: group insurance is most likely to be for

(term life insurance)

completion: premiums for workers comp. are paid by...

(the employer)

Multiple choice- your auto liability insurance shows policy limits of 100,000/300,000. what does that mean?

100,000 is the limit per individual hurt and the 300,000 is the total per accident

True or False-Floods and earthquakes are specifically included in most homeowner policies

False

True or False-If you lose your job cobra permits you to continue your group health insurance permanently as long as you pay the premiums within 36 months

False

True or False-it makes little difference if you start saving for retirement at 25 or 45

False

True or False-large employers are less likely to offer health insurance their employees than small employers

False

True or False-risk avoidance means asking an insurance company to take over the risk for a small payment

False

True or False-Fire is an example of a peril

True

True or False-Property inventories are important to identify insurance needs and to substantiate claims

True

True or False-Spreading risk among the large number of people is a major principle of insurance

True

True or False-even the best retirement plan needs to be reviewed every few years

True

True or False-government assistance, primarily social security, is the largest source of income for

True

True or False-increasing the deductible is likely to lower the premium on a comprehensive medical policy

True

True or False-liability exposures may result from alleged negligent actions

True

True or False-term insurance is generally the most economical form of life insurance for young families

True

True or False-the basic purpose of insurance is to protect you and your family from the results of accidental losses

True

Multiple choice- a roth IRA is

all of the above

Multiple choice- major sources of retirement income include

all of the above

Multiple choice-all property insurance companies require you to show the following when making a claim..

all of the above

Multiple choice- the basic principles of property and liability insurance pertain to....

all of those