Insurance Unit Test

Name:

Insurance companies make money by...

• Refusing to pay out claims to policyholders
• Collecting money from the government
• Collecting more in premiums than they need to pay out each year
• Keeping costs low with minimal advertising

Which is not a type of risk?

• Economic and Non-Economic
• Controllable and Uncontrollable
• Pure and Speculative
• Car Risk

What are types of insurance?

• auto, homeowners, health, and life
• vehicle, home borrowers, medical
• car, renters, health, the game of life

Disability insurance

• pays when you stay home for a day with a sore throat
• is not recommended for young people
• provides coverage for lost wages due to illness or injury.
• all of the above

What are coverage limits?

• Full coverage on your property
• The amount covering you
• no coverage
• The maximum amount your insurance company will pay for a particular loss

An insurance deductible refers to

• protecting the assets of individuals
• liability of protection
• amount consumer has to pay before insurance pays their part
• amount paid to the insurance company for coverage

What is the relationship between premium and deductible?

• the higher the premium, the lower the deductible
• you have to pay the premium, not the deductible
• you have to pay the deductible not the premium
• the higher the premium, the higher the deductible

Which is not an example of risk management strategy?

• Wearing reflective clothing while biking at night
• Buying a new car
• Wearing a helmet while biking
• Wearing a seat belt while driving

What is a risk management strategy?

• a thing that increases the change of injury
• A answer to all risks
• Something that stops something from happening
• Something helps prevent something from occuring