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WorksheetsPersonal Finance Chapter 25 Review
Total questions: 38
Worksheet time: 19mins
Name
Class
Date
1.
Transfer payments are government payments to some citizens.
a)
TRUE
b)
FALSE
2.
A personal insurance program is unique to each person or family.
a)
TRUE
b)
FALSE
3.
When you purchase a car with safety features, you are reducing risk?
a)
TRUE
b)
FALSE
4.
Self-insurance is the process of establishing a monetary fund to cover the cost of risk rather than insurance.
a)
TRUE
b)
FALSE
5.
Risk reduction involves avoiding situations that involve risk.
a)
TRUE
b)
FALSE
6.
Pure risk means there is a chance of loss with no chance of gain.
a)
TRUE
b)
FALSE
7.
Liability risks result from loss or harm to your own personal property not the property of others.
a)
TRUE
b)
FALSE
8.
Personal risks are risks involving income and standard of living.
a)
TRUE
b)
FALSE
9.
Unearned premium is refunded to the policyholder when insurance is cancelled.
a)
TRUE
b)
FALSE
10.
Proof of loss is required before insurance claims can be settled.
a)
TRUE
b)
FALSE
11.
Grace period is a period of time that follows the due date of an unpaid premium.
a)
TRUE
b)
FALSE
12.
Hazard is a cause of possible loss, such as fire, storm, explosion.
a)
TRUE
b)
FALSE
13.
Based on the law of large numbers, insurance companies can predict their risk.
a)
TRUE
b)
FALSE
14.
Insurance is designed to enrich a person.
a)
TRUE
b)
FALSE
15.
Fee or premium is paid by the policy holder.
a)
TRUE
b)
FALSE
16.
Risk is uncertainty of a loss.
a)
TRUE
b)
FALSE
17.
The possibility of a loss is called
a)
Policy
b)
Insurance
c)
Hazard
d)
Risk
18.
The fee paid by the policy holder is called
a)
Policy
b)
Deductible
c)
Premium
d)
Face Amount
19.
Restoring a policyholder to his or her original financial condition is called
a)
Probability
b)
Exclusion
c)
Deductible
d)
Indemnification
20.
A(n) __________is a specific amount subtracted from covered losses
a)
Benefit
b)
Exclusion
c)
Deductible
d)
Premium
21.
One who calculates an insurance premium is an
a)
Agent
b)
Actuary
c)
Beneficiary
d)
Policyholder
22.
a______________is the likelihood of some loss being increased.
a)
Hazard
b)
Peril
c)
Risk
d)
Loss
23.
The ___________is returned to the policyholder when a policy is canceled.
a)
Exclusion
b)
Cash Value
c)
Unearned Premium
d)
Deductible
24.
The possibility of a loss or harm to property is known as
a)
Personal
b)
Property
c)
Liability
d)
Indemnity
25.
With a(n) ____________risk, there is ALWAYS a chance of loss if certain events occur.
a)
Insurable
b)
Speculative
c)
Pure
d)
Interest
26.
To ____________risk, you take measures to lessen the frequency or severity of losses that may occur.
a)
Avoid
b)
Reduce
c)
Shift
d)
Assume
27.
Self-insuring is called
a)
Risk Avoidance
b)
Risk Reduction
c)
Risk Transfer
d)
Risk Assumption
28.
A risk that ALWAYS involves a chance of loss if certain perils occur
a)
Risk
b)
Speculative Risk
c)
Property Risk
d)
Pure Risk
29.
A company that represents many different insurance companies
a)
Agency
b)
Policyholder
c)
Insurance
d)
Policy
30.
Possible losses involving income and standard of living
a)
Pure Risk
b)
Personal Risk
c)
Property Risk
d)
Insurable Risk
31.
The amount paid by a policyholder for insurance coverage
a)
Premium
b)
Policy
c)
Deductible
d)
Risk
32.
Financial loss that CAN be determine
a)
Speculative Risk
b)
Pure Risk
c)
Insurable Interest
d)
Insurable Risk
33.
Any interest in life or property such that, if the life or property were lost, financial loss would occur
a)
Insurable Risk
b)
Pure Risk
c)
Speculative Risk
d)
Insurable Interest
34.
Possibilities of loss or harm to property
a)
Pure Risk
b)
Speculative Risk
c)
Property Risk
d)
Personal Risk
35.
The mathematics of chance
a)
Probability
b)
Insurance
c)
Property Risk
d)
Premium
36.
A method of spreading risk to protect assets and income
a)
Risk
b)
Insurable Risk
c)
Insurance Risk
d)
Insurance
37.
A person who owns an insurance policy
a)
Policy
b)
Policyholder
c)
Policyowner
d)
Policypicker
38.
Possibility of a loss
a)
Pure Risk
b)
Speculative Risk
c)
Property Risk
d)
Risk
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