Insurance Overview Quiz

Risk refers to an accident or trouble which can be predicted.

• True

• False

Which of the following terms describes the scope of protection provided under an insurance policy?

• Coverage

• Premium

• Deductible

• Risk

Which of the following terms describes the fee the policyholder pays to the insurance company in order to be insured for a defined period of time?

• Deductible

• Premium

• Policy

• Coverage

Which of the following terms describes the portion of a claim the policyholder must pay before the insurance company provides the benefits?

• Coverage

• Policy

• Premium

• Deductible

Which step of choosing an insurance program involves individuals determining their methods of reducing risk?

• Set insurance goals

• Review the results

• Put the plan into action

• Develop a plan to reach the goals

Which of the following types of risks are completely accidental and unintentional?

• Hazards

• Negligence

• Pure risks

• Speculative risks

__________ is the failure to take ordinary or reasonable care to prevent accidents from happening.

• Risk
• Peril
• Hazard
• Negligence

Which of the following types of risks carry a chance of either loss or gain?

• Negligence

• Pure risks

• Hazards

• Speculative risks

Raul has a policy with his auto insurance company. A repair covered by the policy costing $1,500 would require him to pay $600 and then the insurance covers the remaining $900. What is another name for the $600 Raul must pay?

• Risk

• Deductible

• Premium

• Coverage

Select all of the following which are important factors when setting insurance goals.

• Age

• Income

• Lifestyle

• Personality