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- 1. Multiple Choice
Most insurance policies, no matter what type or kind, have exclusions. What are exclusions?
provisions that become active at times of disasters or national distress
special provisions the give extra care and attention in natural disasters
provisions that deny coverage for expenses arising because of a specific event
exclusive provisions that take effect on good clients who avoid accidents, etc.
- 2. Multiple Choice
Which type of insurance pays an insured person an income when that person is unable to work because of accident or illness?
Life Insurance
Health Insurance
Property Insurance
Disability Insurance
- 3. Multiple Choice
Which is NOT an essential component of a standard homeowners insurance policy?
property reimbursement
liability for accidents
provisions for natural acts
earthquakes and water damage
- 4. Multiple Choice
What is the primary purpose of insurance?
To pay for your mistakes
To take money away from you
To protect you against a financial loss
To allow you to do things you couldn't do
- 5. Multiple Choice
Aiden is considering types of insurance to cover his newly-purchased home near a river. Aiden should MOST LIKELY research
if his health insurance includes injuries due to construction.
if his life insurance premiums will decrease due to owning a home.
if his property insurance policy will include flood damage benefits.
if his automobile insurance rates will increase at his new location.
- 6. Multiple Choice
An automobile insurance policy with a higher premium will MOST likely have
no liability.
a lower liability.
a lower deductible.
a higher deductible.
- 7. Multiple Choice
Shanna's mortgage company requires insurance coverage. Which type of insurance would she need?
automobile
disability
life
property
- 8. Multiple Choice
What is the primary way in which insurance allows you to be covered for a loss, even if you haven't had it for very long?
You get money from them.
You pay more money later.
You share the risk with others.
Insurance helps you to avoid things.
- 9. Multiple Choice
David considers himself to be a responsible and safe driver. He has never been in an accident and never received a speeding ticket. He is looking for the minimal amount of automobile insurance possible. Which type of coverage best fits David's goals?
liability coverage
collision coverage
comprehensive coverage
uninsured and underinsured motorist coverage
- 10. Multiple Choice
Which statement BEST explains why insurance companies charge higher premiums for high-risk individuals and events?
High-risk events occur more often than low-risk events.
These people pay higher federal and state income tax rates.
The risk of monetary loss is greater for these people and events.
High-risk individuals spend more money than low-risk individuals.
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