Insurance Test Review

A claim is...

• risks and events that are protected

• the contract that outlines coverage between you and insurance company

• the price you pay for the policy

• a formal request for payment from the insurance company

A deductible is...

• a formal request for payment from the insurance company

• the price you pay out of pocket from a claim before the insurance company will

• splitting the cost of the claim with the insurance company

• the price you pay for the policy

An insurance policy is a _________ the outlines coverage between you and the insurance company

• contract

• warranty

The risks and events that are protected in the policy

• Coverage

• Premium

• Claim

A financial product purchased to shift the risk

• insurance

• savings account

• CD

The ________ is the consumer that is covered by insurance policy.

• policyholder

• insurance holder

The price you pay for the policy is...

• Deductible

• Coverage

• Premium

Type of risk where there is no chance of a financial gain but you can purchase insurance

• Pure Risk

• Speculative Risk

Type of risk where you can either lose or gain financially

• Pure Risk

• Speculative Risk

David wrecked his car and the damages were $3000. He had to pay $500. What is the amount he had to pay called?

• Premium

• Deductible