Risk Management Final (Dollars & Sense)

A __________ is a periodical bill a policyholder pays to keep coverage in effect.

• Premium

• Liability

• Beneficiary

• Compensation

Select all of the following which are factors affecting insurance premiums.

• Amount of competition the insurance company faces

• Likelihood of a claim being made

• Type of insurance agent

• Type of insurance coverage

Which of the following is the fixed cost a policyholder is responsible for paying before insurance coverage starts picking up the bill?

• Premium

• Deductible

• Liability

• Beneficiary

Transfer the risk to a third-party entity, in most cases, an insurance company. Which risk strategy is this?

• Risk avoidance

• Risk retention

• Risk transfer

• Risk mitigation

Which of the following types of coverage methods combine per person and per occurrence approaches?

• Split limits

• Liability limits

• Collision limits

• Comprehensive limits

Insurance helps preserve and build wealth.

• True

• False

Which of the following types of health insurance covers daily care expenses when an elderly person becomes unable to care for themselves?

• Short-term disability insurance

• Long-term disability insurance

• Long-term care insurance

• Accident insurance

An insurance plan with a low deductible will have __________.

• Higher premiums

• Lower coverage

• Fewer benefits

• Longer waiting periods

Which of the following types of life insurance only pays benefits if an individual dies during the period in which the policy is covered?

• Whole life insurance

• Term life insurance

• Universal life insurance

• Partial life insurance

Which of the following laws define “aggravated” identity theft?

• Identity Theft and Assumption Deterrence Act of 1998

• Identity Theft Penalty Enhancement Act of 2004

• Identity Theft Enforcement and Restitution Act of 2008

• Fair Credit Reporting Act of 2003