Insurance and Risk Management

Sixteen-year-old drivers have __ times the risk of being in a crash compared to 18-year-old drivers.

• 3

• 2

• 4

• 5

What percentage of all bicycling fatalities are caused by head injuries?

• 50%

• 60%

• 75%

• 80%

In exchange for a relatively small payment (your ______), you're protected against the chance of a big financial setback.

• premium

• deductible

• copayment

• coverage

What is insurance?

• A) A type of investment

• B) Protection against large-scale financial loss

• C) A form of savings

• D) A loan from a bank

Which of the following is a type of insurance?

• Automobile

• Health

• Disability

• All of the above

What type of insurance provides coverage for personal property and liability for renters?

• Homeowners/Renters

• Life

• Disability

• Health

What are Medical Payments in auto insurance?

• Coverage for vehicle damage

• Coverage for medical expenses

• Coverage for theft

• Coverage for legal fees

What does Underinsured Motorist coverage mean in auto insurance?

• It covers damages when the at-fault driver has insufficient insurance.

• It covers damages to your vehicle regardless of fault.

• It provides coverage for medical expenses only.

• It covers damages caused by uninsured drivers.

How does mileage influence the cost of an auto policy?

• Higher mileage generally increases the cost.

• Higher mileage generally decreases the cost.

• Mileage does not affect the cost.

• Mileage only affects the cost for new cars.

How does driving record influence the cost of an auto policy?

• A good driving record typically lowers the cost.

• A poor driving record has no effect on the cost.

• A good driving record increases the cost.

• A poor driving record typically lowers the cost.