Bodily injury liability auto insurance covers all of the following EXCEPT

• passengers riding with the policyholder

• pedestrians

• the policyholder

• people in other cars

Homeowners insurance that actually replaces an item that has been destroyed is known as ____.

• a comprehensive policy

• a replacement policy

• an all-risk policy

• an exceptions policy

Coverage for losses caused by another driver whose coverage is insufficient is called _____.

• collision coverage

• medical payments coverage

• comprehensive coverage

• underinsured motorist coverage

Which of the following is NOT a way to reduce your automobile insurance costs?

• complete a driver education course

• maintain good grades

• increase your deductible

• pay monthly instead of semi-monthly

Which of the following perils is covered by the basic form of a homeowners policy?

• explosion

• theft

• windstorm/hail

• all of the above

Insurance feature that helps to pay for the living costs you would incur if something happened to your home.

• personal property

• personal liability

• additional living expenses

• property insurance

The most important factor that influences homeowners insurance premiums is

• the estimated danger of loss based on the insurance company's past experiences

• the value of the insured property

• the distance to the nearest fire department

• the insured's credit rating

To have an insurable interest in the life of another person, you must

• be related by blood to that person

• receive some kind of financial benefit from that person's continued life

• work in the same office or factory as that person

• both a and b but not c

The most important feature of universal life insurance is that

• the investment portion earns a variable rate of return

• the death benefit always exceeds the cash value

• the premiums are fixed and regular

• the payment period is for the life of the insured

the person named in the policy to receive the insurance benefits

• insured

• beneficiary

• policy holder

• policy owner