Question 1

Financial plans that are more than five years off are called?

Options :

A : Opportunity plans

B : Long-term goals

C : Intermediate goals

D : Attainable goals

Answer: B

Question 2

Once the dealer accepts your offer, you complete the purchase transaction and take the delivery of the car. If you are not paying cash for the car, you can arrange financing:

Options :

A : Through a consumer finance company

B : At your bank

C : A credit union

D : All of these

Answer: D

Question 3

Which of the following is NOT the date that is the key to classify the chronology of the data?

Options :

A : policy date

B : accident date

C : reinsurance date

D : report date

Answer: C

Question 4

Assume that fire destroys two rooms of furniture that were 6 years old and had an estimated useful life of 10 years. The replacement cost is $5,000. Therefore at the time of loss, the furniture was subject to an assumed physical depreciation of 60%, i.e., 3,000 in this case. Because the actual cash value is estimated at $2,000. So, the maximum insurer would have to pay is:

Options :

A : $2,200

B : $2,000

C : $3,000

D : $5,000

Answer: B

Question 5

Loss control is an activity that:

Options :

A : Avoid the act that would create loss

B : Lessens the severity of loss once it occurs

C : Lessens the severity of loss after its occurrence

D : None of these

Answer: B