WISE TEST ACTUAL QUESTIONS AND VERIFIED

WISE TEST (ACTUAL / ) QUESTIONS AND VERIFIED

CORRECT ANSWERS

The maximum amount of money a person can borrow is called a credit

• history.
• rating.
• report.
• line. - --Answers---D

Which of the following can help a person lower her personal risk of loss?

• Insurance.
• A will.
• Mutual funds.
• Home ownership. - --Answers---A

If a car was damaged in a flood, which type of car insurance would typically cover the damage to the car?

• Universal.
• Term.
• Disability.
• Comprehensive. - --Answers---D 1 / 4

How should a person decide how much coverage she needs when selecting renters insurance?

• Do online research to find out the minimum coverage

requirement.

• Ask salespeople from several different insurance

companies.

• Determine the dollar value of personal property to be

covered by insurance.

• The amount of insurance is the same for everyone. - --

Answers---C

Car insurance is more expensive for teenage males than teenage females because studies have shown that

• male teenagers have a greater number of accidents than

female teenagers.

• more male teenagers take driver education classes than

female teenagers.

• female teenagers do not drive often.
• female teenagers frequently own their cars. - --Answers--

-A

A person had an Apple computer that was destroyed in a fire.She was able to buy a new Apple computer because her insurance policy had the following benefit 2 / 4

• actual cash value.
• replacement value.
• limited risk.
• unlimited claim. - --Answers---B

If a driver receives several traffic tickets, the cost of the car insurance will probably

• increase.
• decrease.
• stay the same.
• be billed monthly. - --Answers---A

Money that a person pays to an insurance company for a policy is called a

• debt.
• premium.
• deductible.
• liability. - --Answers---B

Before a person can receive money to cover the damage from a car accident, he must

• file a claim with his insurance company.
• increase his insurance coverage.
• have a witness who will testify for him.
• notify the lender who gave him a car loan. - --Answers---A 3 / 4

What is the key word for insurance companies when establishing the cost for a policy?

• Diversify.
• Deductible.
• Risk.
• Credit. - --Answers---C

Two types of life insurance policies are

• general and fixed-rate.
• valuable and indemnified.
• term and whole life (permanent).
• annual and tax exempt. - --Answers---C

When shopping for life insurance, the best strategy is to

• do what the insurance salesperson recommends, since he

is an expert.

• buy coverage at work if possible.
• figure out how much is needed, then get prices from

different companies.

• buy insurance coverage after age 40 so the risk will be

lower. - --Answers---C

The purpose of life insurance is to

• pay a person's outstanding credit card bills.
• / 4