Insurance / business

What role does insurance play in financial planning?

• It helps cover day-to-day expenses

• It guarantees that income and assets are protected

• It grows in value and appreciates over time

• It helps build and maintain one's credit score

The out of pocket cost to the insured when a loss occurs is called...

• Premium

• Deductibe

A stone hits your windshield. Which type of coverage would likely cover this expense?

• Collision

• Comprehensive

• Liability

• None

A policy is a contract between the

• Policyholder and the injured person

• Driver and the government

• Consumer and the insurance company

• Consumer and the insurance agent

What is NOT a type of insurance?

• Auto

• Life

• Park

• Medical

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

• insurance policies.

• warranties.

• risk management strategies.

• deductibles.

What should you NOT use a loan to purchase?

• A house

• Airline tickets to your dream vacation

• A car

• Tuition for higher education

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 people can engage in risky behavior without financial consequences

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

• A and B

Something people buy to protect themselves from losing a lot of money in the event something happens to them or their property is known as...

• warranty.

• risk management.

• liability.

• insurance.

If you were at fault in a car accident, this insurance will pay for your car and the other persons car to be fixed.

• Liability

• Warranty

• Full Coverage

• health care