Wise Test Question and answers verified to pass 2024/2025
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WISE
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WISE
Wise Test Question and answers verified to pass 2024/2025 Wise Test-Insurance
A person buys a flat screen, plasma, theater-like television. The person has homeowner?s insurance. Why would it be appropriate to add a personal property floater to that insurance?
A) To reduce the premium on the ...
Wise Test-Insurance
A person buys a flat screen, plasma, theater-like television. The person has
homeowner?s insurance. Why would it be appropriate to add a personal
property floater to that insurance?
A) To reduce the premium on the homeowner?s insurance.
B) To protect the person who owns the television from liability for damages.
C) To show the insurance company a good faith investment has been made.
D) To cover the cost of replacement should the television get damaged or
stolen. - correct answer ✔D
A woman has just received a very expensive piece of jewelry. The woman has
homeowner's insurance. Which statement would it be most appropriate for her
to make to her insurance agent?
A) "I think I need a personal property floater."
B) "I think I should get speculative risk insurance."
C) "I will deduct the cost of the jewelry from my premium."
D) "I realize that if this jewelry is stolen it will be considered vicarious liability."
Feedback: A personal floater is additional property insurance, which is
available within a homeowner?s policy, to cover damage or loss of a specific
item of value. - correct answer ✔A
For the past five years, a person has had a $20,000 whole life insurance
policy that has a cash value clause. The person decides to surrender the
policy. At the time of surrender, the person will receive
A) one-fifth of the $20,000 face value.
B) $20,000 less the premiums paid.
, C) a calculated amount of money which includes the premiums paid as well as
the interest on that money.
D) a calculated amount of money that must be converted to a term life
insurance policy. - correct answer ✔C
Feedback: The cash value of a whole life insurance policy is based on
premiums paid plus some of the interest earned.
You have a $2,000 loss. Your insurance company pays you $1,500 on the
claim for the loss. The $500 the insurance did not pay is a result of your policy
having a:
A) Co-insurance clause
B) Deductible
C) Hazard clause
D) Premium - correct answer ✔B
Feedback: Most homeowner's insurance policies include a deductible. The
policy owner is responsible for the deductible amount before the insurance
company will pay any portion of the claim. Thus, the policyholder must pay for
all losses equal to or less than the deductible. Raising the deductible on a
policy causes the premium to decrease, sometimes significantly.
Why is term life insurance usually the least expensive type of life insurance?
A) The policy only pays a death benefit
B) The policy builds a cash value
C) The policy provides coverage for a lifetime
D) The policy is available to all consumers - correct answer ✔A
Feedback: Term life insurance is the least expensive type of life insurance
because it is only a death benefit and insures the individual for a limited
number of years... There is no cash value accumulation. The death benefit is
paid only if the insured dies during the term of coverage.
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