7.4 Insurance Review

The six categories of insurance are auto, home, health, life, disability, and renters.

• TRUE
• FALSE

Buying insurance falls under which of these strategies to manage risk?

• Risk Reduction
• Risk Avoidance
• Risk Transfer
• Risk Assumption

Which of the following is the risk of losing something of personal value?

• Personal Risk
• Liability Risk
• Property Risk
• Value Risk

The planned protection provided by sharing economic losses and protects you from risks is called _______________.

• social security
• insurance
• financial security
• identity theft

______ insurance provides money to pay for health care for illness, injury, or in some cases, preventive care.

• Home
• Life
• Health
• Auto

______ insurance provides money to beneficiaries who were named by the insured person.

• Home
• Life
• Health
• Auto

After losing her husband to a heart attack, a wife is left alone to care for 2 children. Her husband's _____________ insurance will cover the funeral costs and provide money for the wife and children.

• auto
• home
• health
• life

_____________ insurance provides payment to cover liability losses as well as damage and loss of the home structure and its contents.

• Homeowners
• Health
• Life
• Auto

The person who purchases an insurance policy is called the _____________________.

• policyholder
• insurance agent
• insurance broker
• shareholder

A contract between the insurance company and the insured that states the exact terms of the contract, including what risks are covered and how much will be paid for any losses is a(n):

• contract
• claim
• deductible
• policy