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WorksheetsPersonal Finance: Insurance
Total questions: 27
Worksheet time: 14mins
Homeowners insurance provides what two basic types of coverage?
uninsured protection and umbrella insurance
umbrella coverage and property protection
property protection and liability protection
liability protection and under-insured coverage
Which of the following best represents an example of a speculative risk?
texting while driving
buying stock in a company
a tornado touching down
disability of a family memeber
Which of the following is true regarding insurance?
The type and amount of insurance needed varies depending on the person buying it.
Generally, automobile insurance is included when homeowners insurance is purchased.
Having insurance guarantees 100% reimbursement in ll accidental situations.
The price of an insurance policy is the only factor to consider when purchasing insurance.
What is the main purpose of insurance?
To eliminate having to pay for anything in the event of an accident.
To provide protection against specific types of financial losses.
To guarantee 100% reimbursement in the event of a loss.
To allow people to do whatever they want without being held accountable.
David purchased a brand-new television six years ago for $1,200. This year, a fire occurred in his house and damaged his television. IF Davis' property is insured for replacement value, what will he likely receive?
A check for $500, which is the depreciated value.
A check for the amount of a television of comparable quality.
Nothing.
An exact replacement TV from the same manufacturer.
Contract that defines the type of losses that are covered, amount of coverage in dollars, and other conditions to which the two parties agree.
Insurance Policy
Insurance Settlement
Umbrella Policy
Automobile Insurance
Eliminates the faultfinding process in settling claims.
No-Fault Auto Insurance
Threshold
Insurance
Insurance Settlement
Coverage for an insured person's car.
Automobile Insurance
Risk Management
Pure Risk
No-Fault Auto Insurance
Money paid by a insurance company.
Umbrella Policy
Insurance Settlement
Insurance Claim
Insurance Deductible
Maximum that can be paid by a insurance company in a no-fault policy.
Threshold
Max Endorsement
Limited Funds
Capacity Payout
Risk with a possibility of loss but no possibility of gain.
Pure Risk
Speculative Risk
Risk Management
Risk
Policy that covers loss amounts that are higher than those covered by primary policies.
Umbrella Policy
Pure Risk
Threshold
Insurance Settlement
Process of measuring risk and finding ways to minimize or manage loss.
Risk Management
Risk
Speculative Risk
Umbrella Policy
Possibility of loss, damage, or injury.
Risk
Damage Control
Inclusion Management
Endorsement
May result in either financial gain or financial loss.
Speculative Risk
Pure Risk
Premium
Depreciation
Financial service used to protect against loss.
Insurance
Police
EMT
Doctor
A(n) _______ is an attachment to existing insurance coverage.
Endorsement
Umbrella
Deductible
Depreciation
The ______ is the amount the insured pays for insurance coverage, usually monthly.
Premium
Deductible
Policy
Coverage
The amount the insured is responsible for paying when a claim is made is the _______.
Deductible
Premium
Threshold
Comprehensive coverage
The process of documenting a loss against an insurance policy is called filing a(n) _______.
Claim
Premium
Policy
Minimum Liability Form
______ is a decrease in the value of property as a result of age or wear and tear.
Depreciation
Time
Wear Down
Lost Calculation
The replacement cost minus depreciation is known as ____________.
Actual Cost Value
Replacement Value
Depreciable Inferred Cost
Rental Cost
______ insurance pays you for a loss or damage to your car resulting from crashes, fire, theft, falling objects, explosions, flood, riots, and collisions with a bird or animal.
Liability
Premium
Comprehensive
Threshold
_________ covers the cost of replacing what you lose without deducting depreciation.
Replacement Value
Depreciable Plus Value
Actual Value
Time Sensitive Value
No-fault insurance plans pays for claims up to a set amount, called a(n)
Threshold
Limited Return
Risk Assessed
Risk Inferred
In general, the higher the ______, the lower the premium.
Deductible
Risk
Value
Cost
_____ insurance covers the personal items of a person renting a dwelling.
Renters'
Apartment
Temporary
Inclusion
