Kelly was hit by a car while she was walking to the park. She incurred $750 in medical costs at a hospital emergency room. Kelly has coverage for this charge under which of her Personal Auto Policy (PAP) coverages? A) bodily injury liability B) other-than collision C) medical payments D) collision ANSWER Answer: […]
Date: September 19th, 2020
The appraisal provision in the Personal Auto Policy is used to determine the A) value of a loss payable under property damage liability. B) amount paid for a physical damage loss to the insured’s auto if the insured and insurer disagree. C) amount of auto insurance that should be purchased for an older/antique car. D) […]
Date: September 19th, 2020
The purpose of gap insurance is to A) pay the difference between the bodily injury liability limit purchased and the actual amount of bodily injury liability if it exceeds the limit. B) pay the difference between the amount the insurer pays if a car is a total loss and the remaining amount owed on a […]
Date: September 19th, 2020
The New York Stock Exchange (NYSE) is A) an automated electronic trading platform. B) a hybrid market, allowing for face-to-face trading on the floor of the stock exchange in addition to automated, electronic trading. C) an auction market with face-to-face trading on the floor of the stock exchange in addition to automated, electronic trading. D) […]
Date: September 19th, 2020
The astute financial manager will seek to attain the highest current ratio possible. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
The retained earnings balance on IBM’s balance sheet at the end of 2010 is equal to IBM’s 2010 net income minus dividends paid in 2010. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
If the value of a vehicle is increased after repairs, such as repainting an entire auto when only one fender or door is damaged, the insurer will not pay for the increase in value. Another name for the increase in value is A) diminution. B) betterment. C) appraisal. D) subrogation. ANSWER Answer: B
Date: September 19th, 2020
You are considering a sales job that pays you on a commission basis or a salaried position that pays you $50,000 per year. Historical data suggests the following probability distribution for your commission income. Which job has the higher expected income? Commission Probability of Occurrence $15,000 .15 $35,000 .20 $48,000 .35 $67,000 .22 $80,000 .18 […]
Date: September 19th, 2020
At what rate must $287.50 be compounded annually for it to grow to $650.01 in 14 years? A) 6 percent B) 7 percent C) 5 percent D) 8 percent ANSWER A
Date: September 19th, 2020
Patricia purchased a Personal Auto Policy (PAP). Her car was rear-ended by a driver who fled the scene. Patricia suffered whiplash, migraine headaches, and she was unable to work. Which of the following coverages will cover her lost work earnings? A) medical payments B) uninsured motorists C) underinsured motorists D) bodily injury liability […]
Date: September 19th, 2020
