MCQ’S 1-20 : (TCO 4) If a home inspection reveals defective house wiring, then this is an example of a ….

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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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