Insurance and Risk Management Review

Insurance can help you manage ___________

• Risk

• Financial loss due to risk

• Both of the above

• Neither of the above

Financial risks can be caused by _______.

• Accidents

• Disability

• Lawsuits

• Any of the above

Which of the following is true?

• In managing risk, you should buy the most insurance you can afford.

• When comparing insurance, you should always buy the policy with the lowest premium.

• Both are true

• Neither is true

There are many ways to manage risks in your financial life. For example, not taking any steps at all to reduce the risk of financial loss is called _______.

• Assuming risk

• Avoiding Risk

• Sharing Risk

• Transferring Risk

If you injure yourself at work and become unable to perform your duties, what form of insurance is designed to pay you benefits for a certain length of time?

• Work insurance

• Life insurance

• Disability insurance

• Health insurance

The more risk you transfer to an insurance company, the _______ your premiums will be.

• Lower

• Higher

Anything _______ that has an adverse effect on your financial goals is financial risk.

• Expected

• Unexpected

• Expected or unexpected

If you live in an apartment, what form of insurance would cover your belongings?

• Homeowner's insurance

• Renter's insurance

• Life Insurance

• Health Insurance

Which of the following is a way to manage risk?

• Assume risk

• Avoid Risk

• Share Risk

• All of the above

Before buying an insurance policy, you should determine _______.

• How much coverage you should buy

• How much you want to spend on premiums

• How much of the risk you can assume yourself