insurance test review
DESCRIPTION
Insurance Test Review. True/False Risk is part of our daily lives. True. True/False The principle of risk is based on uncertainty. True. What type of risk are you taking when you stay on your parent’s insurance while in college?. Risk Transfer. - PowerPoint PPT PresentationTRANSCRIPT
Insurance Test Review
True/FalseRisk is part of our daily lives
True
True/FalseThe principle of risk is based on uncertainty.
True
What type of risk are you taking when you stay on your parent’s insurance while in college?
Risk Transfer
If you take lessons before skiing down the slopes in Colorado on Spring Break, what kind of risk are you taking?
Risk Reduction
If you decide to go ski diving, what kind of risk are you taking?
Risk Retention
If you decide not to go ski diving, what type of risk are you taking?
Risk Avoidance
What is known as the payments you make for insurance coverage?
Premiums
What is the amount of out-of-pocket money you pay before your insurance begins to provide coverage?
deductible
What type of insurance protects you if someone is injured on your property?
Liability Insurance
What type of insurance provide coverage upon someone’s death, but only for a specified period of time?
Term Life
What type of insurance should you buy when you move into your dorm room or your apartment?
Renter’s Insurance
True/FalseInsurance is designed to transfer your risk to a third party.
True
What type of risk is the deductible on your insurance policy?
Retained Risk
True/FalseA low credit score will cause your insurance premiums to be raised.
True
What type of insurance covers your car if damaged by a storm?
Comprehensive
What type of insurance will repair your vehicle if you are in an accident?
Collision
What will affect your auto insurance premium?
Your AgeYour FICO ScoreYour Driving Record
Who needs long-term care insurance?
A young healthy personA newly retired person still in good healthA middle-age person still in good health but concerned about coverage
What is associated with a universal life insurance policy?
Whole Life InsuranceFlexible Death BenefitsFlexible Premium Amounts
What type of life insurance pays its benefits during the term of the policy?
Term
The concept of probability represents the idea of
Chance
True/FalseEveryone who drives has insurance.
False
If you do not go after your dream because of fear, what type of risk are you taking?
Avoiding Risk
If you have smoke detectors in your home, what type of risk are you taking?
Reducing Risk