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Chapters 10, 11, 12 PreTest

Chapters 10, 11, 12 PreTest - < Your location...

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Unformatted text preview: < Your location: Assessments > View All Submissions > View Attempt View Attempt 1 of unlimited Title: CHAPTER 10-11-12 PRACTICE TEST Started: October 19, 2011 8:21 AM Submitted: October 19, 2011 9:11 AM Time spent: 00:49:47 Total score: 34/40 = 85% Total score adjusted by 0.0 Maximum possible score: 40 Student Value Correct Feedback Response Answer 5] A. umbrella 100% a policy B. personal property floater C. coinsurance floater risk clause E. medical payments D. assigned ‘ coverage | Score: 1/1 Comments: coverage protects your automobile from risks such as glass breakage, falling objects, vandalism, or damage caused by hitting an animal. Student Value Correct Feedback Response Answer A. Towing and emergency road service . Comprehensive 100% a B C. Collision D E | | . Wage loss I . Medical | |_pa¥ments—l Score: 1/1 Comments: 3. A parent may be held responsible for the actions of their child if those actions cause financial or physical harm to others. This is known as: Student Value Correct Answer Feedback Response A. negligence. B. strict liability. I C. vicarious 100% liability. D. umbrella coverage. E. self insurance. Score: 1/1 Comments: 4. The 500 in 200/500/50 refers to: Student Value CorrectAnswer Feedback Response A. property damage liability coverage. B. the amount of the deductible. C. collision coverage. D. the total coverage for an accident. E. the limit 100% M for all bodily injury claims from a single I accident. I Score: 1/1 Comments: Your home insurance policy has a $500 deductible. If a windstorm causes $2,000 damage to your home, what amount of the claim would the insurance company pay? Student Value CorrectAnswer Feedback Response A. $2,000 B. $1,000 C. $1,500 100% a D. $500 General Feedback: $2,000 - $500 = $1,500 Score: 1/1 Comments: Which of the following might qualify Amy Farmer for a premium discount on her automobile insurance? Student Value Correct Feedback Response Answer . completing a driver's training program . earning straight A's in college . installing an alarm system in her car . participating in a carpool five days a week . all of the 100% other answers Score: 1/1 Comments: Which one of the following would be an example of the driver classification category that determines insurance rates? Student Value Correct Feedback Response Answer A. John Brown has a 2005 Mazda Miata Convertible. B. Harry Anderson lives in Boca Raton, Florida. 5] C. Charlie 100% a Purciful is 22 years old. D. Charlotte Webb has her vehicle in a locked garage. E. Barry Evans has just moved to Raleigh, North Carolina. Score: 1/1 Comments: Georgia Owen was in an accident in which her car was totaled. What part of Georgia's automobile insurance would cover the damage to her car? Student Value Correct Feedback Response Answer A. bodily injury liability B. medical payments coverage C. property damage 10. liability 51 D. collision 100% a E. comprehensive physical damage Score: 1/1 Comments: Ginger Simpson ran off the road and hit a bridge support. She was seriously injured and spent three days in the hospital. What part of Ginger's automobile insurance policy would cover Ginger's injuries? Student Value Correct Feedback Response Answer A. bodily injury liability E] B. medical 100% 5 payments coverage C. property damage liability D. collision E. comprehensive physical damage Score: 1/1 Comments: David Bowers must show a card from his automobile insurance company when he registers his car in the state of Oklahoma each year. Which of the following types of laws is the reason he must show this card each year? Student Value Correct Feedback Response Answer 5] A. financial 100% a responsibility laws B. lemon laws C. Truth in Lending Law D. Equal Opportunity Law 11. 12. 13. E. fiscal responsibility laws Score: 1/1 Comments: Brett Johnson owns a home in Yukon, Oklahoma. A babysitter he hires breaks her leg when she trips over the dog. What part of his homeowner's insurance would cover this loss? Student Value CorrectAnswer Feedback Response A. buildings and other structures B. additional living expenses property 5] D. personal 100% a liability E. specialized C. personal ‘ coverage ‘ Score: 1/1 Comments: Robert Plant pays a premium each month to State Farm Insurance for automobile insurance on his 2003 Dodge Ram pick-up truck. How is Robert managing his risk? Student Value Correct Answer Feedback Response A. avoidance B. reduction D. shifting a | E] C. assumption 0% I | E. assessment I Score: 0/1 Wind damage occurs to your car costing $800 to repair. If you have a $100 deductible for collision and full coverage for comprehensive, what portion of the claim will the insurance company pay? 14. 15. Student Value CorrectAnswer Feedback Response A. $100 Score: 1/1 Comments: Your home insurance policy has a $250 deductible. If a small fire causes $600 damage to your home, what amount of the claim would the insurance company pay? Student Value CorrectAnswer Feedback Response A. $250 B. $350 100% a D. $600 E. not able to determine from this information General Payment = $600 - 250 = $350 Feedback: Score: 1/1 Comments: Renee Crowgy's policy includes a $500 deductible and a coinsurance provision requiring her to pay 20 percent thereafter. Her medical bills total $5,500. What amount is she required to pay personally? Student Value CorrectAnswer Feedback Response A. $1,500 a B.$500 C. $1,000 0% D. $5,000 E. $5,500 General Personal liability = $500 + .20 ($5,500 - $500) = $1,500 Feedback: Score: 0/1 Comments: 16. In most employer-sponsored disability income insurance plans: Student Value Correct Feedback Response Answer A. your employer 100% E pays part or all of the cost. B. you pay all the cost. C. your union pays all the cost. D. the Social Security Administration pays most of the premium. E. the Veterans Administration foots the bill. Score: 1/1 Comments: 17. Because you are young and healthy now, you may overlook the very real need for which type of insurance? Student Value CorrectAnswer Feedback Response A. disability 100% 5 income. B. health. C. dental. D. vision care. E. liability. Score: 1/1 Comments: 18. Medicare medical insurance is: Student Value Correct Feedback Response Answer A. mandatory. B. financed by corporations. C. voluntary, 100% M and you must sign up for coverage. D. state supported and partially funded by the National Institutes of Health. E. paid for by state governments. Score: 1/1 Comments: 19. Hospital insurance is which part of Medicare? Student Value CorrectAnswer Feedback Response A. Part A 100% a Score: 1/1 Comments: 20. Which one of the following is a correct statement about the nation's health care system? Student Value Correct Feedback Response Answer A. Most Americans are very satisfied with the nation's health care 5 stem. . Most Americans are somewhat satisfied. . Americans pay less for health care than those living in European industrialized countries. . Many 100% Americans are unhappy with our health care system. . All Americans enjoy the best health care available anywhere in the world. Score: 1/1 Comments: 21. Which one of the following is not a provider of health insurance? Student Value Correct Feedback Response Answer A. fraternal organizations B. trade unions 0% C. government programs such as Medicare D. Health Insurance Industry Association E. Blue Cross and Blue Shield Score: 0/1 Comments: 22. Which of the following statements is true? Student Value Correct Feedback Response Answer A. Physician expense insurance coverage normally includes visits to the doctor's office, x- rays, and lab tests. B. Basic health insurance coverage includes hospital expense insurance, surgical expense insurance, and physician expense insurance. C. A deductible provision requires the policyholder to pay a basic amount before the policy benefits begin. D. A good heakh insurance plan should impose no unreasonable E. All ofthe ' 100% a other statements are true. Score: 1/1 Comments: 23. Which one of the following provisions requires that the policyholder pay a basic amount before the policy benefits begin? Student Value Correct Feedback Response Answer A. coinsurance B. stop loss 0% C. deductible E D. self insurance E. incontestable Score: 0/1 Comments: 24. A good health insurance plan should: Student Value CorrectAnswer Feedback Response . provide at least one yeaHs hospital room and board in full. . provide at least a $2 million lifetime maximum for each family member. C. pay 100 percent for out- 25. 26. of- hospital ex enses_. E] D. of er baSIC 100% a coverage for hospital and doctor bills. E. limit your out-of- pocket expenses to no more than $1,000 per year. Score: 1/1 Comments: Marcia Fuller has an insurance policy that lists that she and her three daughters, ages 6, 10, and 12, are covered under this policy. Which provision in her insurance policy is defined by this list? Student Value Correct Answer Feedback Response 5] A. eligibility 100% a B. assigned benefits C. benefit limits renewable E. exclusions and D. guaranteed ‘ limitations | Score: 1/1 Comments: Chris Jones has an insurance policy that pays benefits in cash when he is hospitalized. What type of insurance would this be? Student Value Correct Feedback Response Answer A. comprehensive major medical B. hospital 100% a indemnity C. long-term care D. cancer E. disability income Score: Comments: 27. Which of the following was not a demographic used by the National Center for Health Statistics to analyze life expectancies for its life expectancy table released in 2006? Student Value CorrectAnswer Feedback Response A. race Score: Comments: 28. After you buy new life insurance you have a "free look" period of days. Student Value CorrectAnswer Feedback Response A.10 Score: 0/1 Comments: 29. A document attached to the policy that modifies its coverage by adding or deleting a specified condition is called a(n): Student Value Correct Feedback Response Answer E] A. rider. 100% H B. waiver of premium. C. automatic premium loan. D. beneficiary. E. incontestability clause. Score: 1/1 Comments: 30. Richard Beck has a life insurance policy which he has altered to include an accidental death benefit payable to his son and daughter. This alteration has most likely been done by attaching a(n) to the policy. Student Value Correct Answer Feedback Response A. accelerated benefits clause B. policy dividend C. guaranteed insurability clause clie rider 5] E. double 100% a indemnity nder Score: 1/1 Comments: D. second-to- ‘ 31. Shelley Jackson has a life insurance policy where she makes payments of $185 per year for the rest of her life. This policy has a cash value that increases while she continues to make payments. If she gives up her insurance, the cash value is the amount she would receive from this policy. What type of life insurance does Shelley likely have? Student Value CorrectAnswer Feedback Response 5] A. ordinary 100% a whole life B. limited payment life C. variable life D adjustable life E. universal life Score: 1/1 Comments: 32. Jerry Lewis is thinking about purchasing some life insurance. He goes to a company that is owned by shareholders. What type of life insurance company has he visited? Student Value Correct Feedback Response Answer A. stock 100% E B. debt D. exclusionary E. cooperative Score: 1/1 Comments: 33. Which type of life insurance policy combines term insurance and investment elements? Student Value CorrectAnswer Feedback Response A. whole life B. ordinary life C. universal 100% life D. adjustable life E. extended life Score: 1/1 Comments: 34. Which type of life insurance plan requires you to pay premiums for a stipulated period, usually 20 or 30 years, or until you reach a specified age? Student Value CorrectAnswer Feedback Response A. modified life policy B. variable life policy C. adjustable life policy D. limited 100% a payment policy E. endowment policy Score: 1” Comments: 35. Jeff Willis has five kids and more debt than the average family. What method would probably be the best method for him to use to calculate his insurance needs? Student Value CorrectAnswer Feedback Response A. easy method C. nonworking spouse method D. family 100% 5 need method Score: 1/1 Comments: 36. Using the "nonworking" spouse method, what should be the life insurance need for a family whose youngest child is 10 years old? Student Value CorrectAnswer Feedback Response A. $30,000 B. $50,000 37. 38. E] c. $80,000 100% a | D. $100,000 | E. $180,000 | General Need = (18 - 10) x $10,000 = $80,000 Feedback: Score: 1/1 Comments: The total debts of you and your spouse include the following: mortgage, $180,000; auto loan, $10,000; credit card balance, $2,000; and other debts of $6,000. Further, you estimate that your funeral will cost $4,000. Your spouse expects to continue to work after your death. What is your life insurance need using the DINK method? Student Value CorrectAnswer Feedback Response 5] A. $103,000 0% B. $106,000 a D. $202,000 E. $99,000 General Need = $4,000 + ($180,000 + 10,000 + 2,000)/2] + $6,000 = $106,000 Feedback: Score: 0/1 Comments: Which method of determining life insurance requirements is designed specifically for a working couple with no dependents? Student Value Correct Feedback Response Answer A. hard method B. easy method C. "nonworking" spouse method D. thorough method 5] E. DINK 100% a method Score: 1/1 Comments: | c. $226,000 | | | 39. You probably have little or no need for life insurance if you are: Student Value CorrectAnswer Feedback Response A. a single 100% 5 person living alone or with parents. B. divorced and have two children. C. married and your spouse works. D. gainfully employed. E. a household with several children. Score: 1/1 Comments: 40. Typical examples of uses of life insurance proceeds include: Student Value Correct Feedback Response Answer A. paying off a home mortgage. B. funding an endowment. C. making charitable bequests. D. paying estate taxes. E. all of the 100% 5 items listed. Score: Comments: 1/1 ...
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