FP 101 Week 8 Quiz

Complete the Week 8 Quiz provided by your facilitator.

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Week 8

1. Homeowner’s insurance covers all of the following except
2. Personal property
3. Personal liability
4. Additional living expenses
5. Automobiles

2. Which of the following is not correct about renter’s insurance?
3. The broad form covers personal property against perils specified in the policy.
4. Renter’s insurance covers the building and other structures on the site.
5. Typical coverage pays only the actual cash value of one’s losses.
6. Renter’s insurance includes personal property protection, additional living expenses, and personal liability.

3. When purchasing homeowner’s insurance, if you want a policy that does not consider depreciation, you should look for a policy that
4. Will cover the actual cash value of your house and possessions
5. Will cover two times the actual cash value of your house and possessions
6. Will cover the replacement value of your house and possessions
7. Does not adjust your coverage based on inflation, since this could end up costing you more in annual premiums

4. Which of the following best defines “actual cash value” in a home or renter’s insurance policy?
5. Insurance that pays the replacement value of damaged or stolen
6. Insurance that pays for additional living expense coverage
7. Insurance that pays the depreciated value of damaged or stolen property
8. Insurance that pays for the items included in a “rider”

5. Motor vehicle coverage typically includes all of the following except
6. Most legal expenses
7. Bodily injury liability up to a specified level for all injured in an accident
8. Medical payments up to the policy limit
9. Bodily injury liability of all expenses, no matter the cost, for the most injured

6. Tim was driving his friend Nick to football practice. While driving, he was hit by a driver who had coverage of 100/300/50. Tim and Nick each suffered some physical injuries. Based on this information, which of the following is correct?
7. Tim’s injuries would be covered $100 and property damage would be limited to $300.
8. Nick’s injuries would be covered to $50,000.
9. The policy would provide a maximum of $100,000 for each of the injured, and no more than $300,000 for total injuries sustained in the accident.
10. Tim and Nick’s injuries would be covered to $300,000 each.

7. Patrick has an old beater car and wants to keep his insurance costs down. In order to minimize the financial impact of an accident he may cause, he should, at a minimum, carry which type of insurance?
8. Property damage liability
9. Collision
10. Comprehensive physical damage
11. All of these are required for all vehicles

8. The set amount that you must pay toward medical expenses before he insurance company pays benefits is called
9. Reimbursement
10. Out-of-pocket limit
11. Deductible
12. Internal limit

9. Georgia has a health insurance policy that includes a deductible of $600 and a coinsurance of 20%. If her total bill is $4,000, how much will she be required to pay?
10. $400
11. $600
12. $1,280
13. $3,400

10. Cameron, age 25, sustained a debilitating injury and was unable to perform his job for 45 days. His employer had a disability income insurance policy that pays 70% of take-home pay with an elimination period of 60 days and coverage up to age 65. Given this information, which of the following is true for Cameron?
11. He will receive disability income for 15 days.
12. He will receive disability income for 45 days.
13. He will receive disability income for 60 days.
14. He will not be eligible for any disability income because his disability ended before the elimination period ended.

11. What is a function of disability insurance?
12. Covers medical costs incurred by an insured and their family
13. Part B covers medical costs for you and passengers of your insured vehicle, if you are at fault.
14. Provides income replacement to individuals who are unable to work as a result of illness or accident
15. Covers against the risk that personal property will be stolen or damaged by others

12. Most people buy life insurance to
13. Pay off a mortgage
14. Protect the people who depend on the insured from financial losses caused by his or her death
15. Pay for a vacation
16. Pay taxes

13. Judy and James have a 4-year old child. They plan to purchase a life insurance using this formula: Current income X 7 X 70%. Which method are they using to determine their life insurance needs?
14. Easy method
15. Formal calculation method
16. Nonworking spouse method
17. Family needs method

14. If you want to purchase tem insurance, you will receive all of the following except
15. Protection against loss of life for a specified term
16. Cash value
17. Temporary insurance
18. A benefit during the period it covers, such as 1,5,10, or 20 years

15. Of the following, which one is the most positive feature of whole life insurance?
16. You must pay interest on the policy
17. You pay premiums each year for the rest of your life
18. It builds cash value
19. It is permanent life insurance