James Unit 10 CP Test Review

Front

What is the basic definition of insurance?

Back

an agreement between and individual and a company to protect against risk

Front

What is the possibility of loss or injury to an individual called?

Back

Risk

Front

Which type of auto insurance covers damage to a car when a collision is not involved? Ex: hitting a deer, having a tree fall on your car because of a hurricane

Back

Comprehensive

Front

What type of auto insurance coverage only covers the other person's car involved in an accident that is your fault?

Back

Liability

Front

What type of auto insurance coverage will pay for repairing damage done to your car from an accident?

Back

Collision

Front

The amount of money you have to pay out of your own pocket before the insurance pays is called the _____________

Back

Deductible

Front

The amount you pay for an insurance policy.

Back

Premium

Front

Which of the following is a way to lower your insurance premium?
Options:
have a good driving record,
be involved in sports,
have a parent with you at all times,
buy a sports car

Back

have a good driving record

Front

Insurance that helps cover your income from a job when you can no longer do your job due to health reasons. Can be short term (a few weeks) or long term (longer than 6 months).

Back

disability

Front

A financial product purchased by many people facing a similar risk to protect against the risk of larger losses is called:

Back

insurance