Insurance

What is the basic definition of insurance?

• A contract that pays someone for lost or damaged property, injury or death

• A financial plan that describes how to build wealth

• A credit to cover cost of damage/injury caused to someone due to accident

• An organization that manages investments and provides financial advice

What is the possibility of loss or injury to an individual called?

• Benefit

• Insurance

• Cause

• Risk

What entity can be contacted to check on insurance agents to file an insurance complaint?

• Safety and Hazard Commission

• Car Dealership

• State Dept of Insurance

• Dept. of Motor Vehicles

What is the purpose of the State Department of Insurance?

• To protect insurance companies against adverse selection

• Protect people vs unfair practices + ensure companies are financially sound

• To prevent insurance companies from selling products across state lines

• To provide industrywide data on claims and losses to insurance companies

After a claim, what is the cost a client must incur before insurance will pay?

• Liability

• Contract

• Deductible

• Premium

What type of insurance covers a person for a specified amount of time?

• Annuity

• Term

• Whole

• Universal

What statement is true regarding health insurance benefits for dependents?

• Coverage for dependents may cease if parents become unemployed

• When one person in the household has a medical plan everyone is covered

• Health coverage is not important for young people

• Young people are covered through their parents until the age of 30

Which type of auto insurance covers damage to a car when collision is not involved?

• Personal Property

• Disaster Warranty

• Liability

• Comprehensive

Liability Insurance for your car is optional

• True

• False

What is the term used for planning potential personal or financial loss?

• Transferability

• Insurance

• Retirement Plan

• Risk Management