UNHS - Personal Finance - Self check 15

The possibility that your car might be destroyed is a

• speculative risk.

• personal risk.

• property risk.

• liability risk.

Buying insurance allows you to ______ risk.

• avoid

• minimize

• assume

• transfer

Payments that you make to an insurance company in exchange for protection are

• premiums.

• deductibles.

• preferred providers.

• liabilities.

Typically, the_____ your deducible, the_____ your insurance payments.

• higher, higher

• lower, lower

• larger, larger

• higher, lower

When would you need homeowner’s liability insurance?

• if an earthquake damages your home

• if a flood damages your home

• if you accidently start a fire in your home

• if someone falls and is injured in your home

When would you need property insurance?

• if a hurricane destroys your house

• if a neighbor breaks his arm on your property

• if a neighbor falls down the stairs in your home

• if a bicyclist falls on the ice in front of your house

Which kind of auto insurance protects against any kind of damage to your car, including collisions, natural

disasters, and theft?

• bodily injury liability insurance

• collision insurance

• comprehensive physical damage insurance

• personal injury protection

Which kind of auto insurance covers the injury or death of someone in a car accident?

• comprehensive physical damage insurance

• bodily injury liability insurance

• collision insurance

• property damage liability insurance

An employer-sponsored health care plan is usually

• a government-funded plan.

• a group health insurance plan.

• an individual health insurance plan.

• a term life insurance plan.

What is a preferred provider organization?

• a doctor who gives a discount to patients enrolled in a certain health care plan

• a forum where people can compare federally supported health care plans

• a life insurance provider who offers lifetime protection if payments are made

• a life insurance provider who offers life insurance for a limited time