Types of Insurance

Sally is not feeling well so her mother takes her to the doctor. The doctor tells her she has strep throat, gives her medication, and sends her home to recover. What types of insurance would be used in this case?

• Health

• Liability

• Disability

• Unemployment

Joey's father is in a car accident and cannot work. What type of insurance replaces his father's earnings?

• Health

• Life

• Disability

• Property and Liability

David's mother is killed in an automobile accident. What type of insurance would provide his family financial support to cover the paid and unpaid work his mother performed?

• Life

• Health

• Disability

• Worker's Compensation

A beneficiary is the individual who takes out the life insurance policy

• True

• False

A product that transfers risk from an individual to an insurance company or organization

• insurance

• premium

• policy

• risk

The money paid to an insurance company to purchase a policy

• deductible

• insurance

• premium

• policy

The chance of loss from an event that cannot be entirely controlled

• risk

• deductible

• premium

• policy

The amount paid out of pocket by the policyholder for the initial portion of a loss before insurance coverage begins

• premium

• insurance

• risk

• deductible

An insurance contract that states what risks are covered and how much money will be paid for losses.

• insurance

• policy

• premium

• risk

Liability insurance covers accidental harm that may be caused to other people or property

• True

• False