Ch. 14: Risk Management Exam

Insurance is which of the following:

• Protects people from loss in exchange for a fee
• Helps people avoid financial difficulties
• It's a type of risk management
• All of the above

With careful planning, it is possible to avoid all risk.

• True
• False

An insurance policy states the conditions to which

• the insurance co. & policyholder have agreed
• the insurance co. & the insurer have agreed
• The insurer & the insured have agreed
• The policyholder & the insurer have agreed

Comprehensive Auto Insurance

• Covers some of the healthcare caused by an auto accident
• Pays for car if it is stolen or damaged by the weather such as a falling tree
• Covers the other person's car or property if accident was your fault
• covers all injury expenses that exceed the limits of the other driver's policy

Liability auto Insurance

• Covers some of the healthcare caused by an auto accident
• Pays for car if it is stolen or damaged by weather such as a falling tree
• Covers the other person's car or property if accident was your fault
• Provides coverage for injuries to you and your passengers if other motorist uninsured

Uninsured motorist Coverage

• Covers some of the healthcare caused by an auto accident
• Covers the other person's car or property if accident was your fault
• Provides coverage for injuries to you and your passengers if other motorist uninsured
• covers all injury expenses that exceed the limits of the other driver's policy

Underinsured Coverage

• Pays for car if it is stolen or damaged by weather such as a falling tree
• Covers the other person's car or property if accident was your fault
• Provides coverage for injuries to you and your passengers if other motorist uninsured
• covers all injury expenses that exceed the limits of the other driver's policy

Collision Coverage

• Pays for car if it is stolen or damaged by weather such as a falling tree
• Covers the other person's car or property if accident was your fault
• helps pay to repair or replace your car if it's damaged in an accident with another vehicle or object
• covers all injury expenses that exceed the limits of the other driver's policy

Gap auto Insurance

• Covers some of the healthcare caused by an auto accident
• Pays the balance that exceeds the maximum liability payout
• Covers the other person's car or property if accident was your fault
• None of the above

Which of the following pays the amount of an insurance policy upon death of the insured?

• health insurance
• life insurance
• disability insurance
• workers' compensation