Finance EXAM 2
Installment credit exploded on the American scene with the advent of the
Automobile
Henry was driving at dusk and hit a deer running across the road. His damage would be covered under his
Collision policy
When Jane researched the brands and prices of refrigerators, she was
Comparison shopping
Paul and Lora built their home. When they researched contractors, they paid attention to all of the following except
Contractor's property tax payments during construction
Donald and Charlene are married and do not have any children. Each plans to continue to work after the other one dies. Which method are they using to determine their life insurance needs?
Dual income, no kids method
Franklin wants to sell his house himself. Which of the following is NOT correct about his sale.
He should show the house only when he is home alone
Andrew is applying for insurance for his new home. Which of the following is correct?
He should use the replacement value method for settling claims to receive the full cost of repairing or replacing his personal belongings
Barnaby is applying for insurance for his new home. Which of the following is correct?
His policy should automatically increase coverage as construction costs rise.
The type of health insurance coverage that pays for some or all of the daily costs of room and board during a hospital stay is
Hospital expense
If you miss payments on a home equity loan, you can lose your
House
When used effectively, credit can result in
Improved lifestyle
If you do not pay back any of the loan amount for a portion of the loan period, you have a(n)
Interest-only mortgage
This health insurance provision sets limits on the amount of repayment for certain services.
Internal limits
Helga plans to purchase a pickup truck. She should begin her price negotiation at the
Invoice price
This provides the tenant protection from rent increases
Lease
Home equity loans should be used for
Major expenses such as home improvements or education
Another name for a straight term policy is
Multiyear level term
A potential problem with having a long car loan is
Negative Equity
Todd plans to purchase a life insurance policy from a stocky life insurance company. What kind of policy is he planning to purchase?
Nonparticipating policy
A quality health insurance plan should do all of the following except
Provide a lifetime maximum level of coverage of up to $50,000
Negotiation activities are part of the _____ phase of the decision-making process.
Selection and purchase
The Health Insurance Portability and Accountability Act of 1996
Sets federal standards to ensure that workers do not lose their health insurance if they change jobs
This is a written guarantee from the manufacturer that specifies the conditions under which the product can be returned, replaced, or repaired.
Warranty
Another name for permanent life insurance is
Whole life
Katrina was injured in an accident at work. The benefits she will receive to cover part of her income will come from
Worker's compensation
If you have a conversion term policy,
You can convert your term policy to a permanent policy.
If you have a loss due to a flood,
You need to have purchased special coverage if you live in an area that has frequent floods in order to be covered
Acme Home lending offers home equity loans up to 80% of the home value for its customers. If sally johnson has a home valued at $200,000 and a current mortgage of 50,000 how much can she borrow in a home equity loan from Acme
$110,000
Homeowner's insurance covers all of the following except
All of these are covered.