Question details

Liberty University BUSI 352 quiz 3 complete Answers | Rated A+
$ 10.00

Liberty University BUSI 352 quiz 3 complete Answers | Rated A+

More than 2 versions

Question 1 Nathan, age 35, came into your office today. He has been a client of yours for a long time. He has neglected his insurance portfolio up until this point and wants to complete the personal risk management process. Together you determine that his insurance objective is to “insure, in the most economical way, only those risks that have the potential of causing catastrophic financial loss.” You also identified all of the possible risk exposures. In evaluating these risks, which of the following is true?

Question 2 If a risk has a high frequency of occurrence and a high severity, you should:

Question 3 You recently met with your client, Don, age 40. Don is widowed and has one dependent child. During your meeting with him, you discussed the concept of risk management. Which of the following statements regarding the ways to manage risk is incorrect?

Question 4 Zach and Laura recently purchased a new home. They came to your office to ask several questions about their homeowner’s policy. Which of the following is true regarding homeowners insurance?

Question 5 Tom is interested in purchasing a personal liability umbrella policy (PLUP). He has asked you to educate him on this type of policy. Which of the following is true?

Question 6 Which of the following is not a methodology used to determine the amount of necessary life insurance?

Question 7 During your recent meeting with Ron, a new client, you discussed the concept of risk. You defined several terms for Ron. Which of the following terms is defined as the possibility of loss, but no possibility of gain?

Question 8 Jim’s car was totaled in a wreck. He failed to yield to oncoming traffic, and Jim was found to be at fault. The driver of the car he hit did not have insurance. Jim’s own car insurance policy reimbursed him for the property damage to his own vehicle. What type of coverage would pay for this?

Question 9 An HO­3 policy (“open perils” except those specifically excluded) with no endorsements excludes which one of the following perils?

Question 10 In order to have an insurable risk, all of the following must be present except?

Question 11 Julie is a doctor who specializes in performing heart surgery on babies. She has a long­term disability policy that covers her in the event that she can no longer perform this type of surgery due to disability. What type of long­term disability insurance policy does she have?

Question 12 Which of the following is not a response to a perceived risk?

Question 13 When fine arts or gun collections are insured under a homeowner’s policy by endorsement,

Question 14 Which of the following statements regarding life insurance needs are correct? 1: The human value approach looks forward for information. 2: The capitalization of income approach looks at right now only for information. 3: The needs approach looks at future needs of dependents but does not consider the estate that the decedent would have built had he lived.

Question 15 You recently met with your client, Tripp, to discuss his insurance policies. Tripp was reading a book on contracts and wanted to know how his insurance contract related to the material he was reading and to his circumstances. During your conversation, Tripp made several statements to clarify that he understood insurance. Which of the following statements would you have told him was incorrect?

 

· Question 1

When fine arts or gun collections are insured under a homeowner’s policy by endorsement,

 

 

· Question 2

B.J. leaves his garage door open during the day because he knows he has property insurance, and he is lazy. One day, someone steals his new truck from his garage. Leaving the garage door open is an example of:

· Question 3

Which of the following statements is/are correct?
1: The cause of a loss is a peril.
2: A hazard is a condition that increases the probability of a loss occurring.

· Question 4

Joe wants to purchase a life insurance policy on his own life. He is interested in learning about the various approaches to determine the amount needed. Which of the following is not true regarding the three most common approaches?

· Question 5

In order to have an insurable risk, all of the following must be present except?

· Question 6

Erin purchased a life insurance policy on her own life. Her husband, Mike, is the beneficiary of the policy. Which of the following is not a necessary legal element of the contract?

· Question 7

All of the following are needed to calculate the client’s human life value except:

· Question 8

Term life insurance is considered “pure insurance.”

· Question 9

Tom is interested in purchasing a personal liability umbrella policy (PLUP). He has asked you to educate him on this type of policy. Which of the following is true?

· Question 10

Which of the following is not a response to a perceived risk?

· Question 11

Which of the following is true regarding the financial needs method used to determine life insurance needs?

· Question 12

Jim’s car was totaled in a wreck. He failed to yield to oncoming traffic, and Jim was found to be at fault. The driver of the car he hit did not have insurance. Jim’s own car insurance policy reimbursed him for the property damage to his own vehicle. What type of coverage would pay for this?

· Question 13

An HO-3 policy (“open perils” except those specifically excluded) with no endorsements excludes which one of the following perils?

· Question 14

Ginny and Max own a rental home on the Gulf Coast. They insured their property with their local insurance company. The policy provides protection against losses caused by perils that are specifically listed as covered in the policy. What type of policy do they have?

· Question 15

Conditions that increase either the frequency or severity of loss are called:

Which of the following would not be considered a personal risk?

Ginny and Max own a rental home on the Gulf Coast. They insured their property with their local insurance company. The policy provides protection against losses caused by perils that are specifically listed as covered in the policy. What type of policy do they have?

Jennifer had a very bad year. She wrecked her car in January when she ran a red light (because she could not see properly having left her contacts at home) and crashed into another car completely destroying both cars. The insurance company was very nice to her and she purchased a new car with the insurance proceeds. Jennifer decided that since she had insurance, it really did not matter if she took proper care of her new car because she could always get a new one. Jennifer got in the habit of leaving her new car unlocked and it was stolen. After Jennifer bought another car she decided that she really liked the insurance adjuster and wanted to see him again, so one day she purposefully set her car on fire. In her carelessness, she also caught her hand on fire. Jennifer was depressed over her circumstances and decided she didn’t want to go back to work. She filed a falsified disability claim for the loss of use of her hand (even though she could still use her hand). Which of the following statements is true?

Which of the following is most likely to be an insurable risk?

Erin purchased a life insurance policy on her own life. Her husband Mike is the beneficiary of the policy. Which of the following is not a necessary legal element of the contract?

Joe wants to purchase a life insurance policy on his own life. He is interested in learning about the various approaches to determine that amount needed. Which of the following is not true regarding the three most common approaches?

Which of the following is true regarding the financial needs method used to determine life insurance needs?

Josh, age 30, is a single father of one daughter, Nicole, age 11. Josh works for an advertising agency with an annual income of $40,000. Due to his messy divorce and several student loans that drain his financial resources, Josh lives paycheck to paycheck. His doctor recently discovered that he has high cholesterol and Josh is worried that his health may fail. He wants to purchase a life insurance policy to protect Nicole in the event of his untimely death (his employer does not yet offer a group plan). Assuming he wants to buy as much coverage as possible for the cheapest price, which of the following policies should he buy?

Available solutions