Money Matters Spring Final Exam Review

        Automobile insurance is often required by which of the following types of laws?

• Passenger Carrier Regulations

• Federal Motor Vehicle Safety Standards

• Financial Responsibility Laws

• National Traffic and Motor Vehicle Safety Act

   Which of the following types of insurance covers physical injuries to others caused by an accident for which the policyholder was responsible?

• Collision insurance

• Property damage liability

• Medical payments coverage

• Bodily injury liability

     Which of the following types of insurance covers costs if an individual is involved in a car accident with an uninsured driver?

• Property damage liability

• Uninsured motorist protection

• Collision insurance

• liability

1.           Which of the following terms describes a group of people who CANNOT obtain an insurance policy from regular carriers due to a poor driving record?

• Standard risk drivers

• Assigned risk pool

• Underage drivers

• Preferred risk drivers

1.           Which of the following types of insurance is required when a car is financed or leased?

• Comprehensive insurance

• Bodily injury liability

• Medical payments coverage

• Property damage liability

Jason’s car needs a $1,500 repair and he has a $100 deductible with his auto insurance. How much will the insurance will pay for the repair?

• $100

• $750

• $1,400

• $1,500

1.              Allison’s insurance price decreased when she moved from the city to the country. Considering this example, the insurance price is affected by which of the following factors?

• Amount of coverage

• Vehicle type

• Rating territory

• Driver classification

An imported car costs more to insure because it has more expensive replacement parts. Considering this example, the insurance price is affected by which of the following factors?

• Rating territory

• Vehicle type

• Driver classification

• Amount of coverage

Which of the following types of insurance is applied when the policyholder damages the property of another person?

• Property damage liability

• Uninsured motorist protection

• Collision insurance

• Bodily injury liability

       Which of the following is a coverage payoff which provides coverage beyond a vehicles actual cash value

• Car loan payoff coverage

• Extended warranty

• Medical payments coverage

• Property damage liability