W!SE Practice: Insurance

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

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

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

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

Back

Automobile

Front

What is a probable financial consequence for John's wife and two children after his unexpected death without life insurance? Options: The loss of John's income, A reduction in the family's standard of living, Death-related expenses to be paid, An increase in income and expenses

Back

An increase in income and expenses

Front

Which statement does NOT accurately describe a characteristic of cash value for whole life insurance? Options: Cash value grows gradually over time, If the policy is cancelled, you may be entitled to some or all of the accrued cash value, Policy that accumulates cash value is less expensive than a policy that does not accumulate cash value, When an insured person dies, the beneficiary will receive the death benefit but the insurance company keeps the cash value

Back

Policy that accumulates cash value is less expensive than a policy that does not accumulate cash value

Front

Richard's auto insurance policy expired on 5/15/2002. Richard was upset with his insurance agent and decided to change insurance companies. At 10:00 a.m. on 5/16/2002, as he drove to a different agent to buy a new policy, he had an accident. Who is liable for damage to his car and his personal injuries?

Back

Richard

Front

Neil will be traveling by air in Southeast Asia for a six-week vacation. Which step will not provide protection during the trip? Options: Buy baggage claim insurance, Buy flight insurance, Buy medical insurance that covers him when he travels internationally

Back

Take his passport

Front

The only type of life insurance that does not develop a cash value is:

Back

Term life insurance

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