Financial Liability Law Quiz Questions
.
- 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
Questions: 20 | Attempts: 10420 | Last updated: Sep 2, 2020
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