Personal Finance: Insurance

Front

A financial product that is purchased to help lower risk in a particular field would best be described by which of these terms? Premium, Policy, Insurance, Risk, Deductible

Back

Insurance

Front

The money paid to an insurance company to purchase a policy is:

Back

Premium

Front

The chance of loss from an event that cannot be entirely controlled

Back

Risk

Front

The out‐of‐pocket money paid by the policyholder before an insurance company will cover the remaining costs attributed to the loss

Back

Deductible

Front

David’s mother has an automobile accident and the other driver is uninsured. Which type of insurance will take care of her repairs?

Back

Collision

Front

A tornado comes along and takes Ian's car and deposits it in a tree 3 blocks away. Which type of insurance will cover the cost of his car?

Back

Comprehensive

Front

David has liability insurance on his car. Which of these will not be covered by his insurance? Cost of his car's damages, Cost of other people's property, Cost of other drivers automobile damage, Cost of other drivers medical bills

Back

Cost of his car's damages

Front

Liability insurance covers accidental harm that may be caused to other people or property.

Back

True

Front

The purpose of having insurance is to transfer part of the risk to the insurance company and other drivers.

Back

True

Front

One way to make your car insurance more affordable is to buy a car that is sporty and drives fast.

Back

False