Insurance Basics & Auto Insurance

Front

A contract between the insurance company and the insured that states the exact terms including what risks are covered is a(n)?

Back

policy

Front

The money paid to an insurance company to purchase a policy.

Back

premium

Front

The out-of-pocket money paid by a policyholder before an insurance company will cover the remaining costs caused by a loss.

Back

deductible

Front

What type of insurance will provide John's family with financial support after his father passed away? (Options: health, life, auto, unemployment)

Back

life

Front

What type of insurance can be used when receiving a prescription for medication to recover from the flu? Options: health, disability, life, unemployment

Back

health

Front

A financial product purchased by many people facing a similar risk to protect against the risk of loss.

Back

insurance

Front

A formal request to an insurance company asking for a payment when the policyholder has an accident, illness, or injury is called:

Back

a claim

Front

The chance of loss.

Back

risk

Front

Wearing a helmet while riding a bike is an example of: risk avoidance, risk reduction, risk assumption (ignore risk), risk shifting (transfer risk)

Back

risk reduction

Front

Which of the following is NOT a risk management strategy? risk assumption (ignore risk), risk shifting (transfer risk), risk reduction

Back

risk analysis