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exam 3 36/40 finc
Terms in this set (39)
to cover additional personal property not adequately covered by your homeowner`s policy, you should take out an____ policy
personal articles floater
Insurance is not a good option for managing risk when
the probability of loss is very small
your automobile insurance policy contains policy limits of 200/300/100. If you have an accident in which you are deemed at fault and two people sustain bodily injury that result in combined claims of $450,000, how much of the claim will not be covered under your insurance policy
Your home insurance provides for replacement value for personal property losses. Your china hutch was vandalized and completely destroyed. Your hutch cost $400 4 years ago, but a new one would cost you $600. How much will the insurance company pay?
to significantly reduce your automobile insurance premiums and still have adequate coverage you should
raise the deductibles on comprehensive and collision
Which of the following is not covered by renters insurance
fire damage to the buildings roof
if you have an accident resulting in $2000 in damage to your car and have a $500 deductible collision coverage, which of the following is true?
you will pay the first 500 and your insurance company will pay 1500
Homeowners insurance premiums are heavily influenced by all of the following except
number of children who live in the home
Auto insurance discounts are given for all except which of the following
Which of the following may be a reason why an insurance company decides not to renew your policy?
both you caused an accident as a result of drunk driving and your drivers license was suspended
the 25 in 50/100/25 refers to ____ coverage
property damage liability
The amount of damage that you will be required to cover if your car is involved in an accident that is your fault is your
all other things being equal, which of the following people would have the lowest insurance rates
a person living in a small town compared to a large one
the best way to reduce your homeowner`s insurance premiums is to
People are more willing to purchase or increase their insurance coverage when
economic conditions are favorable and incomes are higher
Which of the following is an advantage of a PPO compared to an HMO?
there are more choices of specialized health care providers
Which of the following statements about the Medicare Prescription Drug Improvement and Modernization Act of 2003 is not true?
-low income seniors are subject to a $250 dollar deductible
How much of a $2000 medical bill would you pay if your policy contains a $400 deductible and a 10% coinsurance clause?
what act established provisions that require US citizens to obtain health insurance
Affordable Care act
Which of the following is not true as it relates to the cost of health care?
better claim handling and processing has helped reduce the cost of health care
Which of the following statements about an HMO is not true?
the health care providers are compensated on the basis of each visit by a patient
which of the following is not true regarding employer disability insurance
disability benefits are provided for very long periods, usually up to 30 years
regarding the definition of disability
it varies from one disability policy to another
Regarding Medicaid which of the following is true
it is a federal program administered by each state
Which of the following is usually not offered as part of a benefits package to employees
the cost of health care has risen dramatically in recent years due to all of the following except
reduced litigation costs
life insurance proceeds are not used to
fund the policyholders retirement
the easiest method of estimating your life insurance needs is the
Sam figures it will take 250,000 invested at 6% to provide suitable income for his family for 12 years. He would also like to have 40,000 set aside to educate his 2 children. Sams current savings is $20,000. How much life insurance does he need to using the budget method?
If you choose to receive your benefit if the form of equal payments for a certain number of years instead of a lump sum, you elected to receive an
installment payment settlement
Which of the following is not a type of life insurance covered in the text
In the ____ method, life insurance is determined as a multiple of your annual income
Which of the following insurance type is strictly intended to provide only insurance in the event of death?
How much insurance would be needed in order to provide for a family for 20 years if the pretax income necessary to cover living expenses is $50,000 and the money can be invested at 6%
Which of the following factors does not affect your life insurance premiums
your level of education(correct)
the cash value of the policy
on which type of insurance policy is choosing an insurance company with a high rating most important?
___ life insurance can only be used to payoff a home in the event of the policyholders death
which of the following is false concerning term life insurance?
has a cash value or savings feature as long as you keep the policy active
a person earning $75,000 per year has term life insurance at their place of employment equal to their annual income. Using the income method with a factor of 5, how much additional insurance will she need?
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