WISE Insurance Questions Munn

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

• insurance policies

• warranties

• risk management strategies

• deductibles

Which is not an example of a risk management strategy?

• Wearing a seat belt while driving

• Wearing a helmet while biking

• Wearing reflective clothing while biking at night

• Buying a new car

Why is it important to have insurance?

• So people can protect themselves from losing a lot of money in the event something happens to them or their property

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

• So people can engage in risky behavior without financial consequences

• Both option 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...

• risk management

• insurance

What do people purchase as a form of risk management to protect themselves from losing a lot of money in the event something happens to them or their property?

• Deductibles

• Insurance

• Warranty

• Liability

When filing an insurance claim, the policyholder must pay a ______, which is the amount you owe before insurance will cover the rest of the bill.

• Premium

• Deductible

• Contract fee

• Commission

An insurance deductible is...

• the amount you owe before insurance will cover the rest of the bill

• the contract fee applied to the monthly premium

• a commission paid to the agency for the purchase of a policy

• the monthly premium on an insurance policy

Liability insurance is...

• insurance that will pay for injury to another driver and/or damage to their car if you are in an accident

• insurance that will pay for damage to your car in the event of an accident

• insurance that will pay for damage done by someone who doesn't have insurance

• Insurance that will cover injuries to yourself in the event of an accident

Insurance that will pay for injury to another driver and/or damage to their car if you are in an accident is called...

• uninsured motorist insurance

• collision insurance

• comprehensive insurance

• liability insurance

What does liability insurance not cover in the event of an accident?

• Injury to yourself

• Injury to the other driver

• Damage to someone else's property

• Damage to someone else's car