EVERFI MODULE 7 "INSURANCE"

Wearing a seat belt, not texting when driving, and driving carefully are all examples of...

• insurance policies.

• warranties.

• risk management strategies.

• deductibles.

Which is not an example of a risk management strategy?

• Wearing reflective clothing while biking at night

• Buying a new car

• Wearing a helmet while biking

• Wearing a seat belt while driving

What should you NOT use a loan to purchase?

• A house

• Tuition for higher education

• Airline tickets to your dream vacation

• A car

What is a risk management strategy you could use to protect your home?

• Buying a home security system

• Installing front porch cameras to monitor your home

• Purchasing reflective clothing to wear while biking at night

• A and B

Why is it important to have insurance?

• It's important to have insurance so people can protect themselves from losing a lot of money in the event of an unpredictable event or something happens to them or their property.

• So individuals can defend against the possibility of financial loss due to unpredictable event

• So people can engage in risky behavior without financial consequences

• A and B

What do people purchase as a form of risk management to protect themselves from losing a lot of money in the event something happens to them or their property?

• Insurance

• Deductibles

• Warranty

• Liability

What can insurance protect you from?

• Theft

• Contract fees

• Financial loss

• A and C

Why should you purchase insurance?

• To prevent financial burden in the case of an accident, theft, or another event

• To get a warranty on a household item

• To purchase monthly premiums

• To avoid committing a crime

An insurance deductible is...

• the monthly premium on an insurance policy.

• a commission paid to the agency for the purchase of a policy.

• the amount you owe before insurance will cover the rest of the bill.

• the contract fee applied to the monthly premium.

An insurance premium is paid by...

• the insurance company.

• the claims adjuster.

• the government.

• the policyholder.