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PFM Chapter 14 Review

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Insurance guarantees that you will have no financial losses

a)

True

b)

False

2.

A poor driving record an increase your premiums

a)

True

b)

False

3.

In case of fire, it is a good idea to have a household inventory stored in a safe deposit box

a)

True

b)

False

4.

It is better to not call the police to investigate an accident when no one is injured

a)

True

b)

False

5.

Males under the age of 21 will pay less for auto insurance than females under 21

a)

True

b)

False

6.

Vehicles that have a higher risk of theft have higher auto insurance premiums

a)

True

b)

False

7.

An umbrella policy provides additional liability protection beyond that included in a policy.

a)

True

b)

False

8.

Increasing a deductible amount should decrease premiums

a)

True

b)

False

9.

Fraudulent claims have no effect on the costs of providing insurance protection

a)

True

b)

False

10.

To insure something, it must be something that , if lost, would not cause you financial harm

a)

True

b)

False

11.

A regular payment required to purchase insurance is a

a)

premium

b)

bond

c)

bid

d)

benefit

12.

An expert's determination of the value of a piece of property is known as a(n)

a)

premium

b)

appraisal

c)

claim

d)

critique

13.

An insurance contract is a(n)

a)

policy

b)

invoice

c)

warranty

d)

lease

14.

The amount an item is currently worth is it's

a)

insurance value

b)

wholesale value

c)

market value

d)

replacement value

15.

The amount you pay for a loss before the insurance company pays anything is known as a

a)

deductible

b)

risk

c)

coverage

d)

installment

16.

Insurance that pays for damage to your car caused by something other than a collision is called

a)

comprehensive

b)

medical

c)

collision

d)

no fault

17.

A special addition to a policy that covers a specific loss not covered in the standard policy

a)

rider

b)

point

c)

deductible

d)

option

18.

The insurance that covers your own car when in an accident that is your fault

a)

comprehensive

b)

liability

c)

collision

d)

no fault

19.

Insurance that pays for damage you caused to another vehicle is called

a)

no fault

b)

property damage liability

c)

comprehensive

d)

collision

20.

The three basic types of consumer insurance are property, liability, and ______________

a)

deductible

b)

personal

c)

medical

d)

comprehensive