Insurance Quiz (Chapter 8)

A category of pure risk is a

• Personal Risk

• Property Risk

• Liability Risk

• Personal, Property, and Liability Risk

Ar risk that could result in either financial gain or financial loss is a

• Speculative Risk

• Financial Risk

• Liability Risk

• Personal Risk

The main purpose of insurance is to provide financial protection in the event of

• illness or injury

• accidents and property losses

• death

• illness, injury, accidents, property losses, and death

A type of insurance that protects against financial risks is ________ insurance

• Disability

• Automobile

• Health

• Disability, automobile, and health

An amount you must pay toward your medical expenses before insurance pays is the

• copayment

• dividend

• deductible

• coinsurance

An example of a managed care plan is

• POS

• HMO

• PPO

• POS, HMO, and PPO

An insurance plan with a tax advantaged savings account is a

• PPO

• HDHP

• CPI

• FDIC

The law that provides for a person to continue their health insurance if unemployed is

• NASD

• IPO

• COBRA

• NASD, IPO, and COBRA

Disability insurance may replace what percentage of income loss?

• 100%

• 80 - 90%

• 60 - 70%

• 50%

Long term care insurance covers costs related to

• nursing homes

• assisted living facilities

• living at home

• nursing homes, assisted living facilities, and living at home