Differenty Tpes of InsuranceInsurance

A fee paid to the insurer to be covered under specific terms.

• Premium

• Insurance

• Deductible

• Policy Holder

• Risk

Insurance covers injuries ONLY if the accident was not the drivers fault.

• True

• False

Select the items that are covered by a basic property insurance policy.

Responses

• fire damage

• termite damage

• theft

• vandalism

• hail damage

Which statement BEST explains why insurance companies charge higher premiums for high-risk individuals and events?

• The risk of monetary loss is greater for these people and events.

• High-risk events occur more often than low-risk events.

• High-risk individuals spend more money than low-risk individuals.

• These people pay higher federal and state income tax rates.

David considers himself to be a responsible and safe driver. He has never been in an accident and never received a speeding ticket. He is looking for the minimal amount of automobile insurance possible. Which type of coverage best fits David's goals?

Responses

A

• collision coverage

• comprehensive coverage

• uninsured and underinsured motorist coverage

• liability coverage

Automobile

Home

Cash

Stocks

• Assets

• Liabilities

• Short-Term Investments

• Long-Term Investments

Has no expiration date

• Whole Life

• Term Life

• Life Insurance

• Premiums

The practice of the insurance company taking some of the responsibility for an accident away from he insured person

• avoid Liability

• transfer Liability

• shared Liability

• retain Liability

An agreement by a contract, guarantee payment, or guarantee replacement if loss occurs

• Whole life Insurance

• Health Insurance

• Insurance

• Automobile Insurance

Need to use insurance you first pay

• Co-pay

• Deductible

• Premuim

• total payment