Insurance WISE

Front

Why would it be appropriate to add a personal property floater to homeowner's insurance for a flat screen, plasma, theater-like television?

Back

To cover the cost of replacement should the television get damaged or stolen.

Front

A woman has just received a very expensive piece of jewelry. The woman has homeowner's insurance. Which statement would it be most appropriate for her to make to her insurance agent?

Back

I think I need a personal property floater.

Front

For the past five years, a person has had a $20,000 whole life insurance policy that has a cash value clause. The person decides to surrender the policy. At the time of surrender, the person will receive:

Back

a calculated amount of money which includes the premiums paid as well as the interest on that money.

Front

You have a $2,000 loss. Your insurance company pays you $1,500 on the claim for the loss. The $500 the insurance did not pay is a result of your policy having a:

Back

Deductible

Front

Why is term life insurance usually the least expensive type of life insurance?

Back

The policy only pays a death benefit.

Front

Lucy has no insurance. The situation(s) should she consider insuring against first are: Death so her financial obligations are paid, Losses resulting from an illness, accident, or disability, Property losses and auto accidents, Auto collision, and burglary

Back

Losses resulting from an illness, accident, or disability

Front

Which of the following insurance covers vehicles? Mortgage, Racing, Automobile, Life

Back

Automobile

Front

Insurance is frequently described as a method of "sharing the risk" because the:

Back

Insured shares the risk of loss with all the other policy holders

Front

Sally took out a $50,000 life insurance policy. The $50,000 amount of coverage is called the:

Back

Death benefit or face value

Front

The purpose of Insurance is NOT to: Diversify an investment portfolio, Share risk with other policy holders and the insurance company, Protect assets, Protect against potential losses

Back

Diversify an investment portfolio