5A: Identify common types of risks and basic risk man

What is a deductible in an insurance policy?

• The amount you pay for insurance coverage each month

• The amount you pay out of pocket before insurance covers the rest

• The total cost of an insurance policy

• The amount the insurance company pays for a claim

Which of the following is an example of liability insurance?

• Health insurance

• Car insurance that covers damage you cause to others

• Life insurance

• Unemployment insurance

Explain how a premium is related to an insurance policy.

• It is the amount paid by the insurance company to the policyholder.

• It is the amount paid by the policyholder to the insurance company for coverage.

• It is the amount deducted from a claim.

• It is the amount of coverage provided by the policy.

Identify the type of insurance that provides benefits to employees who are injured on the job.

• Health insurance

• Life insurance

• Worker’s compensation

• Liability insurance

What is the primary purpose of health insurance?

• To provide income after retirement

• To cover medical expenses

• To pay for damages caused by natural disasters

• To compensate workers for job-related injuries

Describe how unemployment insurance benefits individuals.

• It provides financial support to individuals who are unable to work due to illness.

• It offers compensation to individuals who lose their jobs through no fault of their own.

• It covers medical expenses for unemployed individuals.

• It provides life insurance coverage for unemployed individuals.

Which type of insurance is designed to provide financial support to beneficiaries after the policyholder's death?

• Health insurance

• Life insurance

• Worker’s compensation

• Liability insurance

How does a deductible affect the cost of an insurance policy?

• A higher deductible usually results in a higher premium.

• A higher deductible usually results in a lower premium.

• A deductible has no effect on the premium.

• A deductible increases the total coverage amount.

What is the main difference between health insurance and worker’s compensation?

• Health insurance covers only job-related injuries.

• Worker’s compensation covers all medical expenses.

• Health insurance covers general medical expenses, while worker’s compensation covers job-related injuries.

• Worker’s compensation provides life insurance benefits.

Identify a scenario where liability insurance would be applicable.

• A person receives medical treatment for a broken leg.

• A driver causes an accident and damages another car.

• An employee receives benefits after being laid off.

• A family receives a payout after a policyholder's death.