UGBA 135 QUIZ QUESTION COMPILATION STUDYGUIDE QUESTIONS AND
CORRECT ANSWERS
Question:
1. In the video on life insurance, which type of life insurance policy is recommended for most
people?
A. Universal life insurance policy
B. Term life insurance policy
C. Whole life insurance policy
D. Cash value life insurance policy
Answer:
B. Term life insurance policy
Question:
2. Women are likely to pay more for liability insurance because
A. They are more likely to be unable to work due to complications of pregnancy
B. They are more likely to have a heart attack
C. They are more accident prone
D. They tend to have higher paying jobs and therefore receive greater disability benefits
Answer:
A. They are more likely to be unable to work due to complications of pregnancy
Question:
3. It is a good idea to always buy extended warranties for small appliances.
A. True
B. False
Answer:
B. False
Question:
4. A life insurance policy is likely to cost more if which of the following are true (choose all
correct answers):
A. You smoke
B. If the death benefit is higher (if your beneficiaries will be paid more)
C. You have a desk job
D. You are younger
Answer:
A. You smoke
B. If the death benefit is higher (if your beneficiaries will be paid more)
Question:
5. You should never ask insurance agents how big of a commission they will receive if they
sell you a policy.
B. False
,Answer:
B. False
Question:
6. Under no circumstances will a life insurance company pay a claim if it is determined that
the insured person committed suicide.
A. True
B. False
Answer:
B. False
Question:
7. Which of the following is NOT a major type of liability coverage in a standard auto
insurance policy?
A. Bodily Injury, All Parties
B. Collision
C. Property damage
D. Bodily Injury, Single Person
Answer:
B. Collision
Question:
8. What type of auto insurance coverage pays for medical expense of people you injure who
are in a car that you hit (if you are at fault), but not your own medical expenses if you are
injured.
A. Collision coverage
B. Comprehensive
C. Liability coverage
D. Uninsured/Underinsured Motorist Coverage
Answer:
C. Liability coverage
Question:
9. Below are a list of suggested actions to take after an auto accident. Choose all the correct
answers.
A. Say nothing to anyone, just drive away quickly
B. Check for any injuries and administer first aid if necessary
C. Do not admit fault
D. Remain calm ity insurance? (Choose all correct answers.)
A. Drivers who have not caused an accident or gotten a speeding ticket in the last three
years
B. Drivers 65 and older
C. Drivers who drive less than 1000 miles per year
D. Drivers under 25 years old
E. None of the other answers are right
, Answer:
B. Check for any injuries and administer first aid if necessary
C. Do not admit fault
D. Remain calm swers are right
Question:
10. Which is usually NOT true about leasing a car?
A. When you turn in your car at the end of the lease, you'll be charged for tears, scratches,
and dents.
B. At the end of the lease, you don't own anything.
C. You can drive a leased car for as many miles as you like without paying extra.
D. Leases are complicated contracts and often contain hidden fees.
Answer:
C. You can drive a leased car for as many miles as you like without paying extra.
Question:
11. Which of the following would be covered by comprehensive coverage in an automobile
policy?
A. Medical expenses for people injured in an accident that you cause.
B. Losses from damage to your car in an accident with another car that you cause.
C. Cost have having the car towed if it breaks down on a highway.
D. Losses from theft of the car.
Answer:
D. Losses from theft of the car.
Question:
12. Approximately what fraction of drivers in the US do not have automobile insurance?
A. 1/4
B. 2/5
D. 1/7
Answer:
D. 1/7
Question:
13. Automobile insurance quotes typically provide three limits for liability coverage. If you
buy a policy with 100/300/50 coverage limits what type of coverage have you purchased?
A. $100 bodily injury liability insurance per person, $300 total bodily injury liability insurance
per accident, and $50 property damage liability per accident
B. $1000 property liability insurance per accident, $3000 total bodily injury liability
insurance per accident, and $500 total bodily injury liability insurance per person
C. $100,000 property liability insurance per accident, $300,000 total bodily injury liability
insurance per accident, and $50,000 total bodily injury liability insurance per person
D. $100,000 bodily injury liability insurance per person, $300,000 total bodily injury liability
insurance per accident, and $50,000 property damage liability per accident.
Answer:
CORRECT ANSWERS
Question:
1. In the video on life insurance, which type of life insurance policy is recommended for most
people?
A. Universal life insurance policy
B. Term life insurance policy
C. Whole life insurance policy
D. Cash value life insurance policy
Answer:
B. Term life insurance policy
Question:
2. Women are likely to pay more for liability insurance because
A. They are more likely to be unable to work due to complications of pregnancy
B. They are more likely to have a heart attack
C. They are more accident prone
D. They tend to have higher paying jobs and therefore receive greater disability benefits
Answer:
A. They are more likely to be unable to work due to complications of pregnancy
Question:
3. It is a good idea to always buy extended warranties for small appliances.
A. True
B. False
Answer:
B. False
Question:
4. A life insurance policy is likely to cost more if which of the following are true (choose all
correct answers):
A. You smoke
B. If the death benefit is higher (if your beneficiaries will be paid more)
C. You have a desk job
D. You are younger
Answer:
A. You smoke
B. If the death benefit is higher (if your beneficiaries will be paid more)
Question:
5. You should never ask insurance agents how big of a commission they will receive if they
sell you a policy.
B. False
,Answer:
B. False
Question:
6. Under no circumstances will a life insurance company pay a claim if it is determined that
the insured person committed suicide.
A. True
B. False
Answer:
B. False
Question:
7. Which of the following is NOT a major type of liability coverage in a standard auto
insurance policy?
A. Bodily Injury, All Parties
B. Collision
C. Property damage
D. Bodily Injury, Single Person
Answer:
B. Collision
Question:
8. What type of auto insurance coverage pays for medical expense of people you injure who
are in a car that you hit (if you are at fault), but not your own medical expenses if you are
injured.
A. Collision coverage
B. Comprehensive
C. Liability coverage
D. Uninsured/Underinsured Motorist Coverage
Answer:
C. Liability coverage
Question:
9. Below are a list of suggested actions to take after an auto accident. Choose all the correct
answers.
A. Say nothing to anyone, just drive away quickly
B. Check for any injuries and administer first aid if necessary
C. Do not admit fault
D. Remain calm ity insurance? (Choose all correct answers.)
A. Drivers who have not caused an accident or gotten a speeding ticket in the last three
years
B. Drivers 65 and older
C. Drivers who drive less than 1000 miles per year
D. Drivers under 25 years old
E. None of the other answers are right
, Answer:
B. Check for any injuries and administer first aid if necessary
C. Do not admit fault
D. Remain calm swers are right
Question:
10. Which is usually NOT true about leasing a car?
A. When you turn in your car at the end of the lease, you'll be charged for tears, scratches,
and dents.
B. At the end of the lease, you don't own anything.
C. You can drive a leased car for as many miles as you like without paying extra.
D. Leases are complicated contracts and often contain hidden fees.
Answer:
C. You can drive a leased car for as many miles as you like without paying extra.
Question:
11. Which of the following would be covered by comprehensive coverage in an automobile
policy?
A. Medical expenses for people injured in an accident that you cause.
B. Losses from damage to your car in an accident with another car that you cause.
C. Cost have having the car towed if it breaks down on a highway.
D. Losses from theft of the car.
Answer:
D. Losses from theft of the car.
Question:
12. Approximately what fraction of drivers in the US do not have automobile insurance?
A. 1/4
B. 2/5
D. 1/7
Answer:
D. 1/7
Question:
13. Automobile insurance quotes typically provide three limits for liability coverage. If you
buy a policy with 100/300/50 coverage limits what type of coverage have you purchased?
A. $100 bodily injury liability insurance per person, $300 total bodily injury liability insurance
per accident, and $50 property damage liability per accident
B. $1000 property liability insurance per accident, $3000 total bodily injury liability
insurance per accident, and $500 total bodily injury liability insurance per person
C. $100,000 property liability insurance per accident, $300,000 total bodily injury liability
insurance per accident, and $50,000 total bodily injury liability insurance per person
D. $100,000 bodily injury liability insurance per person, $300,000 total bodily injury liability
insurance per accident, and $50,000 property damage liability per accident.
Answer:
