Insurance

Homeowners insurance provides what two basic types of coverage?

• uninsured protection and umbrella coverage

• property protection and liability protection

• umbrella coverage and property protection

• liability protection and underinsured coverage

Making financial preparations for possible future loss is also called ____.

• implementation

• speculating

• avoidance

• self-insuring

What are the four common methods of risk management?

• avoid, reduce, transfer, assume

• identify, assess, avoid, transfer

• avoid, assess, assume, analyze

• transfer, reduce, identify, analyze

The _____is one risk-management tool that can be used to assess risk.

• speculative risk assessor

• consumer though process

• insurance assessment system

• systematic decision-making process

Which of the following is another term for a liability risk?

• auto risk

• legal risk

• implied risk

• guaranteed risk

Purchasing insurance is an example of which risk management strategy?

• transfer

• avoid

• reduce

• assume

What is the main purpose of insurance?

• To eliminate having to pay for anything in the event of an accident?

• To guarantee 100% reimbursement in the event of a loss.

• To provide protection against specific types of financial losses.

• To allow people to do whatever they want without being held accountable.

Which of the following is true regarding insurance?

• The type and amount of insurance needed varies depending on the person buying it.

• Generally, automobile insurance is included when homeowners insurance is purchased

• Having insurance guarantees 100% reimbursement in all accidental situations

• The price of an insurance policy is the only factor to consider when purchasing insurance

Which of the following best represents an example of a speculative risk?

• texting while driving

• buying stock in a company

• a tornado touching down

• disability of a family member

Which of the following represents a managed care plan?

• Point of service plan

• Preferred provider plan

• Health maintenance organization

• high-deductible health plan