Quiz Week 4 - Unexpected Events B
1. What happens if you don't pay your car insurance premium for your vehicle?
You are not insured and are driving illegally
Any insurance claim isn't processed and your car doesn't get fixed
Your car payments will increase
You are driving illegally
You are not insured
2. Suppose that you only have liability and collision car insurance and you allow your roommate (who doesn't have car insurance) to drive your car to run an errand. What will likely happen if there is a single-car accident causing moderate damage to your car while your roommate is driving?
Your friend will likely go to jail for theft of your car and destruction of property.
Your insurance will likely pay for the damages and add your friend's accident to your record.
Your friend will likely receive fines for driving without insurance.
Your insurance policy will likely not cover the damages to your car.
3. Ashley, Nikki and Jared all selected identical new cars at the same price. Ashley, bought the car with some of her own money and the rest a car loan. Nikki bought the car with cash. Jared leased the car. What is true about their options for car insurance?
Nikki has the option to choose the less expensive liability-only insurance coverage.
Ashley, Nikki and Jared all have the option to choose the less expensive liability-only insurance coverage.
Ashley, and Nikki have the option to choose the less expensive liability-only insurance coverage.
Nikki and Jared have the option to choose the less expensive liability-only insurance coverage.
4. William pays his $500 premium every 6 months for automobile insurance with collision coverage. His deductible is $750. William caused a minor accident that resulted in $800 of damages to his car and $1,100 of damages to the other car. How much will William pay out-of-pocket to have both cars fixed?
5. When Lisa purchased her house, the mortgage lender required her homeowner's insurance to cover 100% of the loan amount. After many years, Lisa paid off her mortgage. If Lisa decided to comparison shop for homeowner's insurance now, what should the insurance coverage amount be based on…
The original cost to build the house
The market value of the house
The appraised value of the house
The cost to rebuild the house
6. How can understanding risk management topics help in everyday life?
It can help you avoid large medical bills incurred because you have no medical insurance.
All answers are correct
It can help safeguard your credit and protect you from lawsuits.
It can help you evaluate the risks involved with situations you might face while driving, hanging out with friends, or being adventurous.
Please Help will all questions!!
Since, there are multiple questions, I have answered the first one.
You are not insured and are driving illegally. (which is Option A)
Driving without insurance is illegal in many states of USA. Further, if the insurance premium on the vehicle is not paid on the due date, the insurance lapses, that is, it would be no longer valid till the time the premium is paid. Such a situation would be equivalent to being uninsured for the relevant period. Since, both of these points are covered in Option A, it is correct.
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