Financial Liability Law Quiz Questions

21 Questions | By Tat123 | Last updated: Mar 20, 2022 | Total Attempts: 107

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Financial Liability Law Quiz Questions - Quiz

Questions and Answers

1.

The most accurate method of determining life insurance needs is
- A.
  
  The budget method.
- B.
  
  The income method
2.

If you buy a term insurance policy with a conversion option, this means that you
- A.
  
  Can convert your term policy to a whole life policy during the conversion period.
- B.
  
  Can convert the policy to a larger term policy after one year.
3.

Before you start to invest, you should ensure liquidity by owning___________.
- A.
  
  Money market mutual funds.
- B.
  
  Options and puts.
4.

Corporate bonds
- A.
  
  Offer a predictable return to investors in the form of interest or coupon payments
- B.
  
  Maintain their value even in periods of changing interest rates
5.

The factor that will not reduce your insurance rate is
- A.
  
  Increasing your deductible.
- B.
  
  Paying all speeding tickets promptly.
6.

Which of the following would pay for medical care for people who were injured in your automobile as a result of an accident that was your fault?
- A.
  
  Medical payments
- B.
  
  Bodily injury liability
7.

If a person is diabetic and is applying for a new health care insurance policy, s/he might be most concerned with which of the following?
- A.
  
  Preexisting conditions
- B.
  
  Cancellation options
8.

Auto insurance can be very expensive if you
- A.
  
  Are a male under 25.
- B.
  
  Have a new car.
9.

__________ coverage covers damage to your car as a result of theft, fire, vandalism or other non-accident events.
- A.
  
  Comprehensive
- B.
  
  Umbrella
- C.
  
  Universal
10.

Which of the following is not true about the state financial liability laws?
- A.
  
  They are the same for all states
- B.
  
  They may require proof of insurance when drivers are involved in an accident
11.

The amount of damage that you will be required to cover if your car is involved in an accident that is your fault is your
- A.
  
  Deductible.
- B.
  
  Premium.
12.

The comprehensive or collision premium of a Rolls-Royce in relationship to a Chevy
- A.
  
  Will be higher because a Rolls-Royce costs more than a Chevy.
- B.
  
  Is a poor investment.
13.

Before you start to invest, you should ensure liquidity by owning___________.
- A.
  
  Money market mutual funds
- B.
  
  Corporate bonds.
- C.
  
  Options and puts.
14.

One of the most commonly used measures of inflation is the _________.
- A.
  
  Consumer price index
- B.
  
  Gross domestic product
15.

A(n) ___________ policy insures your possessions within a house or condominium that you do not own.
- A.
  
  Renters insurance
- B.
  
  Leasing insurance
16.

__________ covers damage to your car when you are at fault in an accident.
- A.
  
  Collision
- B.
  
  Liability
17.

Indemnity health care plans have
- A.
  
  More flexibility and choices than managed care plans.
- B.
  
  Fewer health care professionals to choose from compared to HMOs.
18.

Which of the following is considered personal property for home insurance coverage?
- A.
  
  Furniture
- B.
  
  Tree
- C.
  
  Swing
19.

Which of the following is usually not offered as part of a benefits package to employees? Answer
- A.
  
  Auto insurance
- B.
  
  Retirement benefits
20.

Which of the following will you always have with common stock?
- A.
  
  Voting rights
- B.
  
  Dividends
- C.
  
  Capital appreciation
21.

_________ coverage covers damage to your car as a result of theft, fire, vandalism or other non-accident events.
- A.
  
  Comprehensive
- B.
  
  Umbrella