personal finance ch 8

Paul was driving his kids to a piano lesson in a 2005 minivan. While driving, he was hit by an uninsured motorist. Although Paul and his kids had only minor injuries, their vehicle was totaled. Based on this information, which of the following is correct? a The uninsured motorist needs to purchase insurance after the fact. b It is likely that the uninsured motorist will not receive any citations or fines because she did not have insurance. c In all states, Paul’s uninsured motorist’s coverage must cover damage to all vehicles involved in the accident. d Paul’s uninsured motorist’s protection should cover the cost of injuries for Paul and his kids. e The uninsured motorist will be required to purchase a new minivan for Paul’s family. Paul’s uninsured motorist’s protection should cover the cost of injuries for Paul and his kids.
A household inventory should be stored in a home office. True False false
Sam’s house should be insured for the amount he originally paid for it. True False false
Cheyenne has a home insured for $300,000. It would cost $320,000 to rebuild her home. If she has home insurance that provides personal property coverage at 70% of value, how much of her household belongings would be covered? a $320,000 b $224,000 c $300,000 d $120,000e $210,000 $210,000
Another name for a homeowner’s insurance policy is an umbrella policy. True False false
A policy that supplements your basic personal liability coverage is called a(n) a Umbrella policy. b Medical payments coverage. c Endorsement. d Homeowner’s insurance. e Supplementary policy. Umbrella policy.
You can save no more than 30% on homeowner’s insurance by comparing rates from several companies. True False false
Which of the following is NOT correct about renter’s insurance? a Typical coverage pays only the actual cash value of one’s losses. b The broad form covers personal property against perils specified in the policy. c Renter’s insurance covers the building and other structures on the site. d The comprehensive form protects personal property against perils not specifically excluded in the policy.e Renter’s insurance is relatively inexpensive. Renter’s insurance covers the building and other structures on the site.
The first step in developing a personal insurance program is to set insurance goals. True False true
Risk management is an organized plan for protecting yourself, your family, and your property. True False true

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