Unit 4 Review

reasons consumers decide what products and services to purchase based on feelings, beliefs, and attitudes.

• Rational buying motives
• Patronage Buying Motive
• Emotional buying motives
• Homeowners Insurance

Provides payment to cover liability losses as well as damage and loss of the home structure and its contents

• Earthquake Insurance
• Homeowners Insurance
• Private Mortgage Insurance
• Credit-life Insurance

A policy insuring the owner or mortgagee against loss by reason of defects in the title to a parcel of real estate

• Earthquake Insurance
• Title Insurance
• Private Mortgage Insurance
• Homeowners Insurance

a specific type of loan that is used to buy real estate

• Mortgage
• Title
• Annuity
• Private Mortgage Insurance

A mortgage loan on approved property made to a qualified veteran by an authorized lender and guaranteed by the Department of Veterans Affairs in order to limit the lender's possible loss.

• FHA loan
• AIDA model
• Conventional loan
• VA loan

The process of a title company substituting themselves in place of the grantor is called ....

• subrogation
• title replacement
• conveyance
• grantor guarantee

A lender's or buyer's title insurance policy.....

• insures that the property is not in a flood zone
• insures that the loan will be repaid
• insures that the property has no objectionable encumbrances
• insures that the property has met zoning requirements

Actual cash value homeowners insurance...

• insures the orginal value of the property
• deducts depreciation from the value of the property
• adds depreciation to the value of the loan
• allows for inflation

Extended replacement homeowners insurance...

• includes earthquake coverage
• allows for inflation
• deducts depreciation from the value of the property
• replaces up to the original value of the property

Earthquakes are considered to be ___________________ and are excluded from standard homeowners insurance policies.

• a nuisance
• a pre-existing condition
• normal wear and tear
• an act of God