Exam 3 HW Questions

An automobile warranty provides coverage for the basic parts against​ manufacturer's defects for a set period of time or miles.

Stretching a car loan from 48 months to 60 months means the car will end up costing you more when you have paid in full.

PITI stands for the total of your monthly

You have just obtained a mortgage to purchase your home. The​ ________ that you paid to obtain the loan are charges that must be paid at the time of the sale and serve to raise the effective cost of the loan.

The majority of people never live in rental housing.

A subprime mortgage is a mortgage with an APR below the prime rate.

A mortgage with an APR higher than normal is a subprime mortgage.

Jeremy does not like the idea of paying points. A point is actually

The two primary advantages of a 15 year mortgage over a 30 year mortgage are

The two most common types of step mortgages are the

Wayne and Sarah are trying to manage the risk they face in life a best as they can. They are following Principle 7 which states

Life insurance may not be necessary if

Andrew and Alice have health issues that may be passed on to their children. When the children are born would they be wise to obtain life insurance immediately on the infants prior to any of the medical conditions​ arising?

Using the earnings multiple approach is determining the present value of an annuity as a means to determine the face value of the insurance policy one needs to purchase.

With the needs​ approach, you should take into consideration any additional insurance policies that have been taken out on your life.

The earnings multiple approach is based on the notion that you want to replace a stream of annual income​ that's lost due to the death of a breadwinner.

A disadvantage of term insurance is that the cost rises each time the policy is renewed.

With decreasing term life​ insurance, the face amount of the policy remains​ constant, but the premiums decrease.

A guaranteed insurability rider allows you to increase your face value even if your health fails.

Most long term care policies require that you be unable to perform at least two​ ADL's. What are​ ADL's?

A

30 year old has what percent chance of a 90 day disability before the age of​ 65?

Medicare was enacted to help persons with disabilities and people people over the age of​ ________ who qualify for Social Security.

Antoine LaDuke suffered a major loss on his older home due to mud from a flood. Although he had​ homeowner's insurance, what was the probable reason he was not​ covered?

​Angela's home became overrun with termites. She had to stay in an apartment temporarily while her home was being fixed. The provision on her home owners policy that covers her expenses while she is not able to live in her home is known​ as: Coverage​ D: Loss of Use.

While you were walking your​ dog, she bit a child. Medical treatment for the child would fall under Coverage​ C: Personal Property.

Brandi thought it quite funny to have a decorative outhouse put on her property as a conversation piece. This structure is covered under Coverage​ A: Dwelling on her home owners policy.

Flood protection insurance is generally administered and subsidized by the federal government through the Department of Housing and Urban Development.

Fire, theft, and windstorm damage are examples of

Your boyfriend is living in an apartment complex that has had a recent rash of robberies. He has​ $5,000 worth of rare coins. What should he do to protect himself in case of a​ robbery?

If you wanted to obtain an endorsement that automatically updates the level of property coverage based on an index of replacement costs that continually updates the cost of building a​ home, you would ask for​ a(n)

Coverage​ A: Dwelling protects

The first​ homeowner's policy in the United States was written in 1735 in what​ city?

The minimum level of personal liability coverage per accident in a​ homeowner's policy​ is?

What is the number one natural disaster in the united​ States?

Lisa and Eric want to keep the cost down on the​ homeowner's insurance they will need. After talking to their parents they developed a list of ways to do so. Identify the one mistake on it.

It is possible to have a different deductible for collision loss than you have for comprehensive physical damages.

In​ 2014, at least 26 percent of all auto collisions involved cell phones.

Comprehensive physical damage coverage would cover damage if your car were hit in a parking lot.

Driving at 55 miles per hour for five seconds the minimum amount of time that texting takes your attention off of the road you'll travel the length of a football field without looking

Young​ ________ generally pay the most for their​ insurance, because they have a statistically greater chance of having an accident.

Rosanne was in a car crash a few years ago that left her with hearing loss. She has decided to sue the owner of the other automobile for the medical costs of recovering her hearing. How many​ years, from the date of the​ crash, does she have to file a claim for the​ expenses?

According to the Keown​ textbook, after a DUI​ conviction, how long will you increased rates​ continue?

An option gives its owner the right to buy or sell an asset. This asset is generally

According to the Love​ & Money​ section, on​ average, how long does it take Americans to recover financially from a​ divorce?

A will created by an attorney cannot be contested

An attachment to a will that alters or amends a portion of the will is called a

John Kennedy Jr. and his wife Caroline both perished in the same plane crash. Which of the following clauses would identify who is assumed to have perished​ first?

For most married​ couples, tenancy by the entirety is the best way to establish ownership

If you die without​ one, your state will​ "write one for​ you" based on intestacy laws

Only about​ ________ Americans have created a trust as part of an estate plan.

________ is a type of ownership that exists only between married couples

When you get​ married, by law you must have joint credit card accounts instead of individual accounts.

Your​ spouse's credit score may have a positive or negative impact on your ability to acquire a mortgage together.

Part of the getting started stage is to begin saving for your goals. What are the critical steps to doing​ so?

Which of the following does a budget help you​ accomplish?

Which of the following is one of the​ "keys to financial​ success" as outlined in Chapter 17 of your​ textbook?

Suppose that you want to purchase a home. Your lender has told you that the standard limit for your total debt limit ratio is​ ________ including your mortgage debt.