False
Money management activities refers to long-term investment decisions. T/F
True
When one money management decision is selected, something else must be given up. T/F
False
Opportunity costs are only associated with money management decisions involving long-term financial security. T/F
False
Financial records that may need to be referred to on a regular basis should be kept in a safe-deposit box. T/F
False
A budget is a record of how a person or family has spent their money. T/F
True
Personal records include birth certificate, marriage license, and social security card. T/F
False
Most income tax documents and records should be kept in a safe-deposit box. T/F
False
A personal balance sheet reports your income and expenses. T/F
True
A person's net worth is the difference between the value of the items owned and the amounts owed to others. T/F
False
Furniture, jewelry, and an automobile are examples of liquid assets. T/F
True
Current liabilities are amounts that must be paid within a short period of time, usually less than a year. T/F
True
Insolvency is a result of having more liabilities than assets. T/F
True
A personal cash flow statement presents income and outflows of cash for a given time period, such as a month T/F
True
Take-home pay is a person's earnings after deductions for taxes and other items. T/F
False
Medical expenses, clothing, and telephone are examples of fixed expenses. T/F
False
If expenses for a month are greater than income, an increase in net worth will result. T/F
True
A person's lifestyle is a reflection of his or her values, goals, career, and family situation. T/F
True
A personal cash flow statement can serve as the basis for the budget categories used by an individual or family. T/F
False
Definite financial obligations are referred to as variable expenses. T/F
True
If budgeted spending is less than actual spending, this is referred to as a deficit. T/F
False
Most Americans have an adequate savings for emergencies. T/F
True
Pay yourself first" is an attitude that can assure building savings for the future. T/F
Money Management
________ _________ refers to "Pay yourself first" is an attitude that can assure building savings for the future.
Oppurtunity Cost
________ ___________ refers to trade-offs associated with financial decisions.
Home File
A ________ ___________ should be used for financial records for current needs.
Property tax bill
An example of a personal and employment document is a _________ ______ _____
Investment
A broker statement is an example of a(n) ____________ record.
Consumer
Warranties are commonly associated with ____________ purchases.
Balance sheet and cash flow statement
Which of the following are considered to be personal financial statements?
balance sheet
A personal ______ ______ presents items owned and amounts owed.
balance sheet
The current financial position of an individual or family is best presented with the use of a(n) ________ ________
$23,000
A family with $45,000 in assets and $22,000 of liabilities would have a net worth of?
Assets
Items with a monetary worth are referred to as?
net worth
Items of value less amounts owed to others equals
Liquid assets
________ ________ refers to items that are easily converted to cash.
Investment
An individual retirement account is an example of a(n) ____________ asset.
debts
Liabilities are amounts representing?
current living expenses
A person's net worth is computed by deducting ______ ________ ________from total assets
current income and payments
A cash flow statement reports a person's or a family's
_______ ________ and ___________
transportation
A major expenditure for most families is
physical
The Crown family has a difficult time staying on a budget. In an effort to actually see what funds are available for various expenses, a ____________ budget would be most appropriate.
fixed expenses
The payment items that should be budgeted first are
False
The principal purpose of taxes is to control economic conditions. T/F
True
A state may impose a personal property tax. T/F
True
Real-estate property taxes are a major source of revenue for local governments. T/F
False
Gift amounts over $11,000 are exempt from federal tax. T/F
False
A general sales tax is also referred to as an excise tax. T/F
True
A tax on the value of automobiles, boats, or furniture is referred to as a personal property tax. T/F
True
An estate tax is imposed on the value of an individual's property at the time of his or her death.T/F
False
Taxable income is the total earnings of a person.T/F
False
Money received in the form of dividends or interest is commonly called "earned income." T/F
True
An exclusion is earnings not included in taxable income. T/F
False
Exemptions are expenses that a taxpayer is allowed to deduct from adjusted gross income. T/F
True
A tax credit is an amount subtracted directly from the amount of taxes owed. T/F
False
Most taxpayers have to file quarterly payments of estimated amounts owed for taxes. T/F
TRUE
A person's filing status is affected by marital status and dependents. T/F
False
The simplest federal tax return form is the 1040A. T/F
False
The amount of a person's standard deduction is determined on Schedule A of Form 1040. T/F
False
Tax assistance from an attorney is more common than using a tax preparation service.
True
An office audit requires that a taxpayer visit an IRS office to clarify some aspect of his or her tax return. T/F
True
Several courses of appeal are available to taxpayers who disagree with an IRS ruling on their tax return audit.
False
Tax avoidance refers to illegal actions to reduce one's taxes. T/F
False
Interest paid on credit cards and charge accounts may be deducted from your taxes. T/F
True
Tax-exempt income has a greater financial benefit than tax-deferred income. T/F
True
Capital gains refer to profits from the sale of investments.
taxes
The main purpose of ________ is to generate revenue for funding government programs.
excise
Which type of tax is imposed on specific goods and services at the time of purchase?
real estate
The ______ _______ property tax is based on the value of land and buildings.
estate
What type of tax is imposed on the value of an individual's property at the time of his or her death?
income tax
Taxable income is used to compute a person's ___________ ______
exclusions
Which of the following would result in a reduction of taxable income?
earned
Money received by an individual for personal effort is ____________ income.
investment
Money received in the form of dividends or interest is ____________ income.
passive
Earnings from a limited partnership would be an example of ____________ income.
exclusion
An amount not included in gross income is called _____________
alimony payments
Which of the following would be deducted from gross income to obtain adjusted gross income?
$33,900
George Washburn had earnings from his salary of $34,000, interest on savings of $800, a contribution to an individual retirement account of $1,500, and dividends from mutual funds of $600. George's adjusted income (AGI) would be
exclusion
An ____________ affects a person's taxes by reducing the amount of taxable income.
adjusted gross income
Reductions from gross income for such items as individual retirement account contributions and alimony payments will result in ____________ _______ ___________
tax shelter
Tax-deferred retirement plans are a type of _____ _________
the standard deduction
Which of the following items is a set amount on which no taxes are paid?
itemized deductions
____________ ____________ are expenses that a taxpayer is allowed to deduct from adjusted gross income.
real estate property taxes
An expense that would be included in the itemized deductions of a taxpayer is ______ ________ ____________ ________
exemption
A deduction from adjusted gross income for yourself, your spouse, and qualified dependents is a(n) ______________
$560
Michele Barbour is considering an additional charitable contribution of $2,000 to a tax-deductible charity, bringing her total itemized deductions to $16,000. If Michelle is in a 28 percent tax bracket, how much will this $2,000 contribution reduce her ta
exemption
An_____________ affects a person's tax situation by reducing the taxpayer's taxable income.
a dependent
Which of the following would qualify a person for an exemption when computing taxable income?
credit
A tax ____________ is an amount subtracted directly from the amount of taxes owed.
$50
A tax credit of $50 for a person in a 28 percent tax bracket would reduce a person's taxes by
1040A
Which form would an individual use who has less than $50,000 in taxable income from wages, salaries, tips, unemployment compensation, interest, or dividends, and who is married and does not itemize deductions?
schedule A
Itemized deductions are recorded on
owe $375
A person with a total tax liability of $4,350 and withholding of federal taxes of $3,975 would
an enrolled agent
Kelly Vernon wants her tax return prepared by a government approved tax expert. Which of the following tax preparers should Kelly use?
an attorney
Which type of tax expert would be of most value when you have a difference of opinion with the IRS?
correspondence audit
Which type of audit is the least complicated for taxpayers?
avoidance
The use of legitimate methods to reduce one's taxes is tax ____________.
home equity loan
For which of the following types of credit plans is the interest tax deductible?
$180
An itemized deduction of $500 with a 36 percent tax rate would reduce a person's taxes by
True
Higher returns on savings will usually result in less liquidity. T/F
True
A "free" checking account with a minimum balance of $500 has an opportunity cost of lost interest. T/F
False
Consumers will usually obtain the best overall value of their dollar by having all financial services with the same institution. T/F
True
An asset management account combines several financial services for a single fee. T/F
False
ATM fees are about the same in different geographic areas. T/F
False
Direct deposit usually requires a waiting period for a availability of funds.T/F
False
A lost debit card results in potential losses similar to a lost credit card. T/F
False
Savers should always attempt to obtain an interest rate that is less than the inflation rate. T/F
True
Using a "debit" card is basically the same as writing a check.T/F
False
The use of electronic banking adds to the "float" time for financial services customers. T/F
True
Demand deposits is another term for checking accounts. T/F
False
Traditionally, a mutual savings bank offered the widest variety of financial services T/F
True
Savings and loan associations offer mortgages. T/F
True
Credit unions frequently offer lower loan rates than other financial institutions.
T/F
True
The money market fund offered by investment companies is a relatively liquid financial service. T/F
False
Consumer finance companies specialize in home mortgages. T/F
False
A regular savings account usually offers a higher rate of return to savers than other savings plans. T/F
False
A certificate of deposit is usually considered to be very liquid. T/F
False
The liquidity of a savings account refers to the rate of earning a person will receive.
T/F
False
The more frequent the compounding, the less a person will earn on a savings account. T/F
False
Activity accounts are designed for people who write many checks each month. T/F
True
A restrictive endorsement will usually include the words "for deposit only." T/F
False
When preparing a bank reconciliation, interest earned on your checking account is added to the bank statement balance. T/F
Personal Service
The convenience of using a financial institution with 24-hour banking frequently requires a trade-off with __________ ___________
trust
A ________ has the purpose of managing the assets of a person.
asset management account
The storage of funds for future use is the purpose of ________ _____________ ___________ services.
5
Joan Zemke expects interest rates to decline over the next few months. To maximize her earnings she should use a(n) __-year certificate of deposit
short
When interest rates are rising, a person would be best served by _______-term savings instruments
demand
Checking accounts are frequently referred to as ____________ deposits.
Saving Accounts
Time deposits consist of ___________ ____________
Electronic banking
Direct deposit and automatic monthly payments are features of ________________ _____________
commercial bank
Traditionally, the greatest variety of financial services have been offered by a(n)
depositors
The profits from a mutual savings bank go to the
pawnshop
To avoid high fees for loans, a person should not borrow from a
increased
In recent years, membership in credit unions has ______________
mutual funds
The major service offered by investment companies is ___________ _________
Investment companies
____________ ______________ specialize in helping people save money in a manner than provides high liquidity.
share
A savings account at a credit union is called a ____________ account.
limited liquidity
A certificate of deposit usually has ___________ ___________
certificate of deposit
A saver will usually earn the highest rate with which of the following types of savings plans?
money market fund
Which of the following savings plans is not covered by federal deposit insurance?
yield
The rate of return on a savings account is also referred to as _________
6.5
A $200 savings account that earns $13 interest in a year has a yield of ____ percent.
daily
Savings compounded ____________ would have the highest effective yield.
annual percentage yield
Comparison of earnings for different savings plans can best be accomplished using the _________ _______________ _________
special or activity
A service designed for people who write only a few checks each month is a(n) ____________ or ____________ account.
Blank
A ____________ endorsement would be used if a person is presenting a check in order
check stub
The first information to be recorded when writing a check is the
$145
Based on the following information, what amount would be SUBTRACTED from the BANK BALANCE side of a checking account reconciliation? Service charge $12, Outstanding checks $145, Interest $3.50, Deposit in transit $80
certified check
A personal check with guaranteed payment is called a ______________ _________
True
When you use credit, you satisfy needs today and pay for their satisfaction in the future.T/F
True
Credit is an arrangement to receive cash, goods, or services now and pay for them in the future.
T/F
True
Consumer credit refers to the use of credit for personal needs (except a home mortgage) by individuals. T/F
True
Consumer credit is based on trust in people's ability and willingness to pay bills when due. T/F
False
Consumer credit works because people by and large are dishonest and irresponsible. T/F
False
Consumer credit dates back to World War II.T/F
True
Consumer credit dates back to colonial time. T/F
False
Most economists do not recognize consumer credit as a major force in the American economy. T/F
False
There are very few valid reasons for using credit. T/F
True
Credit when effectively used, can help you have more and enjoy more. T/F
True
It is safer to use credit, since charge accounts and credit cards let you shop and travel without carrying large amounts of cash. T/F
False
The use of credit can provide up to a 10-day "float." T/F
False
The use of credit indicates personal and financial instability. T/F
True
Perhaps the greatest disadvantage of using credit is the temptation to overspend. T/F
True
Although credit allows more immediate satisfaction of needs and desires, it does not increase total purchasing power. T/F
False
With an open-end credit, you pay back one-time loans in a specified period of time in equal amounts. T/F
False
In a closed-end credit, loans are made on a continuous basis and you make at least partial payment. T/F
True
Closed-end in credit is used for a specific purpose and involves a specified amount. T/F
True
In a closed-end credit, generally the seller holds title to the merchandise until the payments have been completed. T/F
True
The three most common types of closed-end credit are installment sales credit, installment cash credit, and single lump-sum credit. T/F
True
Installment sales credit is a loan that allows you to receive high-priced items, such as large appliances or furniture. T/F
True
Installment cash credit is a direct loan of money for personal purposes, home improvements, or vacation expenses. T/F
True
Single lump-sum credit is a loan that must be repaid in total on a specified day, usually within 30 to 90 days. T/F
False
Using a credit card, such as Visa or MasterCard is an example of closed-end credit. T/F
True
A line of credit is the maximum dollar amount of credit the lender has made available to you. T/F
True
Interest is a periodic charge for the use of credit, or other finance charges. T/F
True
Many retailers use open-end credit. T/F
False
Many retailers use closed-end credit. T/F
True
A bank line of credit is a pre-arranged loan for a specified amount that you can use by writing a special check. T/F
True
Parents or family members are often the source of least expensive loans. T/F
True
You can often obtain medium-priced loans from commercial banks and credit unions T/F
False
The least expensive loans are available from finance companies and retailers. T/F
False
Credit unions rarely offer the same range of consumer loans that banks and other financial institutions do. T/F
True
The most expensive loans are available from finance companies, retailers, and credit cards. T/F
False
Borrowing from car dealers, appliance stores, department stores, and other retailers is relatively inexpensive. T/F
True
The credit cardholders who pay off their balances in full each month are known as convenience users. T/F
installment
Another name for closed-end credit is ______________ credit
close ended credit
Kathy purchased a $2,000 digital TV from Young's Appliances. She will make 12 equal payments over the next year to pay for it. She is using.
mortgage
A good example of a closed-end credit is a(n) ____________ loan
close-ended
Mortgage loans, automobile loans, and installment loans for purchasing furniture or appliances are examples of ________________ credit
resolving
Another name for open-credit is __________ credit
line of credit
The maximum amount of credit you are allowed by a creditor is called a(n) _________ ____ _________
open-ended
A good example of _______-_______ credit the use of a bank credit card to make a purchase.
Installment sales
_____________ _________ credit is a loan that allows you to receive merchandise such as a refrigerator or furniture.
Installment cash
_____________ _________ credit is a direct loan of money for personal purposes.
resolving check
_____________ __________ credit is a prearranged loan for a specified amount that you can use by writing a special check.
net worth
Debt-to-equity ratio is calculated by dividing total liabilities by _____ __________
$440
Dave's take home pay per month is $2200. What is the maximum dollar amount of debt payments he should have?
character
The borrower's attitude toward his or her credit obligations is called _____________
character
A bank that is looking at your past payment records on your loans is most likely examining which aspect of the 5Cs of lending?
capacity
The borrower's financial ability to meet credit obligations is called _____________
capital
A term that refers to the borrower's assets or net worth is called ____________
collateral
A valuable asset pledged to assure loan payments and subject to seizure upon default is called __________________
True
Most people select a place of residence based on available financial resources, needs, and lifestyle. t/f
True
Budget guidelines are available to assist people in deciding how much to spend on housing. t/f
True
Opportunity costs of housing can refer to time and effort involved in finding and repairing a place to live along with lost interest earnings on security deposits and down payments. t/f
True
Ease of mobility is an advantage of renting. t/f
True
A lease protects the rights of both the tenant and the landlord. t/f
false
A security deposit is a fee charged to help you find an apartment or house to rent. t/f
true
Condominiums involve the purchase of an individual living unit rather than an entire building. t/f
true
Cooperative housing involves the renting of a living unit by the people involved in ownership of the building on a nonprofit basis. t/f
false
Ease of mobility is a common advantage associated with home ownership. t/f
true
Many people believe that location is the most important factor to consider when selecting a home. t/f
true
Current interest rates can affect the price of a home. t/f
true
Negotiating a purchase price for a home usually involves an offer and counteroffers t/f
true
The amount of the down payment will affect the amount of mortgage a person can afford. t/f
true
Qualifying for a mortgage is similar to obtaining other forms of credit. t/f
true
Prepaid interest may be a part of a mortgage agreement. t/f
false
Amortization refers to changes in the monthly payment for a variable rate mortgage. t/f
true
An FHA-insured mortgage has less risk than a conventional mortgage for the financial institution. t/f
true
Adjustable rate mortgages with a payment cap can result in a situation of negative amortization. t/f
true
A buy down results in reduced mortgage payments during the first few years of the loan as a result of an interest rate subsidy from a builder or real estate developer. t/f
true
A balloon mortgage can help a homebuyer when interest rates are high but are expected to come down in the near future. t/f
false
An escrow account is designed to reduce the cost of a mortgage. t/f
false
An appraisal refers to the price for which a home has been sold. t/f
true
Home improvements may contribute more to the value of the home than the cost of the renovations. t/f
Renting
_________ is more advantageous than buying a home for lower short-term living costs.
interest
A common opportunity cost associated with renting is ________ lost on the security deposit
property
A cost associated with home buying would be _________ taxes
Renting
_________would be most appropriate for people who have limited funds currently available.
initial costs
Brenda Williams plans to rent instead of buy her housing. What advantage of renting will Brenda encounter? Lower _______ ________
condo
Ownership of an individual housing unit in a building is commonly called a _________
nonprofit org
A cooperative housing arrangement involves a _________ _________
cooperative
Otto Putman rents a living unit as a result of his membership in a nonprofit housing organization. What name is commonly used for this type of housing? __________ housing
prefabricated
______________ housing refers to partially assembled housing in factories.
$8000
Lonette and Al received a statement reporting that they paid $8,000 in mortgage interest during the past year. If they are in a 28 percent tax bracket, this deduction would reduce their taxable income by
location
The most commonly considered factor when selecting a home is the
schools
As Wally Quinten conducts an investigation of property value factors, most real estate experts tell him that quality of ____________ most influences the housing values in an area.
zoning
The purpose of _________ laws is to restrict property use
counteroffer
The purpose of a _____________ is to negotiate the purchase price.
Earnest
__________ money has the purpose of serving as good faith by a homebuyer.
lower interest rates
The amount of mortgage a person is eligible for would be increased by ________ _______ _________
points
What is prepaid interest charged by a mortgage company?
25
Todd Foley is applying for a $100,000 mortgage. He can get a $600 monthly payment for principal and interest and no points, or a $520 monthly payment with 2 points? How many months will it take Todd to cover the cost of the discount points if he takes the
equal
A conventional mortgage usually involves _________ payments
fixed rate
Which of the following is an example of a conventional mortgage? A _____ _____ mortgage
processing time
A possible disadvantage of FHA and VA mortgages can be a longer _________ ______
rate cap
The purpose of a ____ ____ with an adjustable rate mortgage is to restrict the amount by which the interest rate can increase.
amortization
Negative ____________ is the result of a higher amount owed on the mortgage.
graduated payments
Fran Laurel expects her income to rise every few years as she gains experience in her career. Which mortgage has payments that rise to different levels every 5 or 10 years?
buy down
A newly married couple is having trouble affording a home. What type of mortgage arrangement would reduce the monthly payment as a result of an interest rate subsidy from a builder or real estate developer?
balloon
A short-term mortgage with a very large final payment is called a ____________ mortgage.
second
A home equity loan is also referred to as a ____________ mortgage.
title insurance
Which of the following is an example of a closing cost?
deed
Which document is used to transfer ownership of property from one party to another?
property insurance
Which of the following expenses is paid from an escrow account?
lawyer
If you sell your home without the use of a real estate agent, you should still make use of a _________
True
The purpose of insurance is to help protect you and your family against financial hardship due to hazard, accident, death, and similar risks. t/f
false
Personal risks, property risks, and liability risks are types of speculative risks. t/f
true
Risk management is an organized strategy for protecting and conserving assets and people. t/f
true
The most common method of dealing with risk is to shift, or transfer it to an insurance company or some other organization t/f
true
Self-insurance is the process of establishing a monetary fund that can be used to cover the cost of a loss. t/f
true
Property losses can be categorized into destruction of property, and losses due to robbery, burglary, vandalism, or arson. t/f
true
Liability is legal responsibility for the financial cost of another person's losses or injuries. t/f
false
Homeowner's insurance does not cover additional living expenses and personal property. t/f
false
Personal property refers to building and other structures covered by homeowner's insurance. t/f
true
Personal belongings that have a high value require coverage with a personal property floater. t/f
true
The purpose of a household inventory is to provide evidence of items covered by home insurance. t/f
true
The purpose of a household inventory is to provide evidence of items covered by home insurance. t/f
false
Medical payments coverage in a home insurance policy is designed to pay for legal action taken against a homeowner who may be legally responsible for injury or property damage of others. t/f
false
Medical payments coverage in a home insurance policy is designed to pay for legal action taken against a homeowner who may be legally responsible for injury or property damage of others. t/f
false
Replacement cost for settling property insurance claims is less costly than the actual cash value method. t/f
true
A home made of wood is more expensive to insure than a comparable brick structure. t/f
false
The deductible amount in your insurance policy does not affect the cost of your insurance. t/f
false
Financial responsibility laws require that drivers have automobile liability insurance. t/f
false
The 100/300 amounts for bodily injury liability insurance refer to the costs of insurance coverage. t/f
true
Medical payments automobile insurance coverage pays for the costs of injuries to persons in the driver's vehicle.t/f
false
No-fault insurance systems have consistently reduced the time and costs involved in settling claims. t/f
false
Collision coverage pays for damage to your vehicle for such hazards as fire, theft, or wind damage. t/f
true
Property damage liability coverage would pay for damage to another vehicle for which you were at fault. t/f
false
The driver classification category is based on automobile style, model, and value of the vehicle. t/f
true
The purpose of an assigned risk pool is to assist people with poor driving records in obtaining automobile insurance coverage.
Peril
________is defined as the refusal by an insurance company to pay for the covered loss
hazard
Defective house wiring is an example of a
property
The uncertainties of direct and indirect losses to personal or real property due to fire, wind, accident, theft, etc., are called ____________ risks.
liability
Possible losses due to negligence resulting in bodily harm or property damage to others are called ____________ risks.
speculative
Starting a small business that may or may not succeed is an example of ___________ risk.
reducing
Using a home security system is an example of ____________ risk.
liability
The legal responsibility for the financial cost of another person's losses or injuries is referred to as _________
negligence
If a homeowner leaves toys on stairs that results in injury to a delivery person, this may be ruled as
liability
While cleaning your home, a worker damages some furniture. You take action against the worker's employer to cover the cost of the damage. This is an example of a (n) ____________.
building and other structures
High winds cause damage to trees, shrubs, and other plants. This insurance claim would be covered under the ____________ component of homeowner's insurance.
supplementary
The ____________ coverage of a home insurance policy would cover accidental damage to another person's property by a member of your family.
umbrella
A(n) ________ policy is designed to cover major personal liability suits.
medical payments
Most home insurance policies provide coverage for ___________ _________
special
Which form of homeowner's policy provides coverage for the most risks?
special
Ainsley and Garret recently purchased a new home and desire coverage for all causes of loss or damage except those specially excluded by the policy. They should obtain the ____________ form of homeowner's policy.
tenant's
The ____________ form of homeowner's insurance is designed to cover the personal property of renters against the risks listed in the policy.
$400
Your home insurance provides for replacement value for personal property losses. A microwave is stolen. It cost $300 two years ago and has an expected life of six years. A comparable microwave costs $400 today. What amount will the insurance company pay?
actual cash
The ________ ________ value method to settle claims is based on the current replacement cost of a damaged or lost item less depreciation.
home insurance
________ ____________ costs are affected most directly by the number of claims in an area.
$350
Your home insurance policy has a $250 deductible. If a small fire causes $600 damage to your home, what amount of the claim would the insurance company pay?
financial responsibility
The purpose of __________ _____________ laws is to protect the public from financial losses due to auto accidents.
bodily injury
________ _______ liabilityprovides coverage for the risk of financial loss due to legal expenses, medical expenses, lost wages, and other expenses associated with injuries caused by an automobile accident for which you were responsible.
no-fault
____-________ insurance protects you against financial loss when your car damages the property of others.
property damage
The 25 in 50/100/25 refers to ____________ _________ liability coverage.
comprehensive
_____________ coverage would cover financial losses due to damage to your car caused by wind or hail.
emergency road service
Which coverage pays for mechanical assistance in the event that your vehicle breaks down?
Property damage liability
____________ coverage would pay for damage to your vehicle in an accident for which another driver with insurance was legally at fault.
rating territory
Your geographic location is a major factor in determining the ____________ used to calculate your automobile insurance premiums.
rating territory
Driver classification is not based on:
assigned risk pool
The purpose of an ________ _______ ________is to provide insurance for poor drivers who can't get motor vehicle insurance.
False
Group health insurance covers all of your health insurance needs. T/f
True
Individual health insurance covers either one person or family. T/F
False
Very few group health policy contracts have a coordination of benefits provision T/F