CHAPTER 14 TYPES OF INSURANCES

Fill in the blank: One of the 3 broad categories of risk that cause financial loss is ________ Risk.

• Property

• Market

• Operational

• Strategic

Fill in the blank: One of the 3 broad categories of risk that cause financial loss is ________ Risk.

• Personal

• Market

• Operational

• Strategic

Fill in the blank: One of the 3 broad categories of risk that cause financial loss is ________ Risk.

• Liability

• Market

• Operational

• Strategic

How does insurance protect you?

The difference between exclusions and endorsements in an insurance policy is:

• Exclusions remove coverage, while endorsements add or modify coverage.

• Exclusions add coverage, while endorsements remove coverage.

• Both exclusions and endorsements add coverage.

• Both exclusions and endorsements remove coverage.

What is a deductible? Why do insurance companies include deductibles in their policies?

• A deductible is a set amount the insured person must pay before the insurer pays benefits. Insurance companies have deductibles to keep their costs down. Deductibles also give the insured an incentive to take precautions against the loss.

• A deductible is the total amount the insurer pays before the insured receives any benefits. Insurance companies include deductibles to increase their profits only.

• A deductible is a bonus paid to the insured for not making any claims. Insurance companies include deductibles to reward safe behavior only.

• A deductible is an optional fee paid by the insured to get extra coverage. Insurance companies include deductibles to offer more flexible plans.

What are 4 types of insurance that most people have?

• Auto Insurance, Home Insurance, Health Insurance, Life Insurance

• Pet Insurance, Travel Insurance, Jewelry Insurance, Boat Insurance

• Flood Insurance, Earthquake Insurance, Crop Insurance, Title Insurance

• Dental Insurance, Vision Insurance, Disability Insurance, Renters Insurance

What does a no-fault insurance system place limits on? ________

• The right to sue other drivers for damages

• The amount of insurance premiums paid

• The number of vehicles insured in a household

• The type of car you can purchase

List 3 factors that contribute to the depreciation of a vehicle.

• Age, Wear and tear, Used items are less valuable than new ones

• Color, Number of cup holders, Type of air freshener

• Brand of tires, Amount of fuel in tank, Car stereo volume

• Window tint, Car alarm sound, Number of keys

What does the liability portion of auto insurance cover?

• Injury or damage to other people or their property

• Theft of your own vehicle

• Damage to your own car from an accident

• Routine maintenance costs