Chapter 5 Risk management & Insurance

Participating in insurance is BEST considered an example of risk __________ .

• Mitigation

• Transfer

• Acceptance

• Avoidance

You are in a car accident in which you are at fault. The other person requires medical treatment and car repairs as a result. What type of insurance do you need?

• Auto insurance (with liability included)

• long term care insurance

• health insurance

• emergency insurance

The technique of assessing, minimizing, and preventing

accidental loss to a business, as through the use of insurance, safety measures, etc.

• accidental loss insurance

• business management

• risk management

• auto insurance

A formal request to an insurance company asking for a payment based on the terms of the insurance policy.

• Policy

• Claim

• Risk

• Premium

The total amount and type of insurance carried.

• Claim

• Deductible

• Coverage

• Insurer

The person, group, or property for which an insurance policy is issued. The condition of having insurance.

• Insured

• Insurer

• Homeowner

Earthquakes, typhoons, and tsunamis are threats, which is also called ______________

• Hazard

• Disaster

• Capacity

• Vulnerabilty

Which types of insurance are most appropriate for a single, working, 24-year-old?

• Health insurance

• Disability insurance

• Life insurance

• Auto insurance

A stone hits your windshield. Which type of coverage would likely cover this expense?

• Collision

• Liability

• Comprehensive

• None

The amount paid for insurance is the

• closing cost
• premium
• deductible
• assessed value