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Worksheets

Risk Management

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

You break your arm playing football. You require an emergency room visit and surgery to repair the damage. What type of insurance do you need?

a)

health insurance

b)

homeowners insurance

c)

renters insurance

d)

long term care insurance

2.

You are cooking dinner and there is a small grease fire in your kitchen. There is a lot of damage in the kitchen. What type of insurance do you need?

a)

auto insurance

b)

homeowners insurance

c)

disability insurance

d)

liability insurance

3.

You are in a car accident in which you are at fault. The other person requires medical treatment and car repairs as a result. What type of insurance do you need?

a)

Auto insurance (with liability included)

b)

long term care insurance

c)

health insurance

d)

emergency insurance

4.

You are injured in a horseback riding accident and can't perform your job for seven months due to two surgeries and rehabilitation. What type of insurance is needed?

a)

auto insurance

b)

disability insurance

c)

homeowners insurance

d)

collision insurance

5.

Your father expresses concern about how your mother will pay the bills in the event of his death. What type of insurance is needed?

a)

health insurance

b)

disability insurance

c)

life insurance

d)

long term care insurance

6.

Your apartment you rent catches on fire. The firefighters put it out and saved most of your stuff. However, most of the furniture is destroyed and there are a lot of repairs needed to the apartment. What type of insurance is needed?

a)

life insurance

b)

homeowners insurance

c)

renters insurance

d)

health insurance

7.

You get a copy of your credit score report and notice that there is a car loan for a car you did not buy. What type of insurance do you need?

a)

homeowners insurance

b)

credit karma insurance

c)

auto insurance

d)

identity theft insurance

8.

The technique of assessing, minimizing, and preventing

accidental loss to a business, as through the use of insurance, safety measures, etc.

a)

accidental loss insurance

b)

business management

c)

risk management

d)

auto insurance

9.

Insurance companies provide us with that intangible security against financial loss, should we face injury, illness, damage of property, or even death.

a)

True

b)

False

10.

A formal request to an insurance company asking for a payment based on the terms of the insurance policy.

a)

Policy

b)

Claim

c)

Risk

d)

Premium

11.

The total amount and type of insurance carried.

a)

Claim

b)

Deductible

c)

Coverage

d)

Insurer

12.

A specified amount of money that the insured must pay before an insurance company will pay a claim.

a)

Allowance

b)

Loan

c)

Premium

d)

Deductible

13.

The state of being responsible for something, especially by law.

a)

Ownership

b)

Liability

c)

Coverage

d)

Claim

14.

The person, group, or property for which an insurance policy is issued. The condition of having insurance.

a)

Insured

b)

Insurer

c)

Homeowner

15.

Risk has three components. Which of the following is NOT a component?

a)

An event that might cause harm

b)

An undesirable outcome

c)

Insurance with liability

d)

Probability: What are the changes this will happen?

16.

____ is the final component of risk and it means "What are the changes an event will happen?"

a)

Risk

b)

Insurance

c)

Probability

17.

There are several ways to manage risk, which of the following is NOT a way to manage risk?

a)

ignore risk

b)

avoid risk

c)

reduce risk

d)

transfer risk

e)

These are all ways to avoid risk.

18.

Having insurance transfers the risk from the ______ to the ______.

a)

individual, insurance company

b)

insurance company, individual

c)

homeowner, renter

d)

renter, homeowner

19.

Employees injured on the job are covered by __________insurance.

a)

workers compensation

b)

life insurance

c)

renters insurance

d)

auto insurance

20.

Insurance policies come in two basic types. Which of the following is NOT a basic type?

a)

long term and short term insurance

b)

property and casualty insurance

c)

life, health and disability insurancce

21.

What risks make teenage driver insurance premiums more costly?

a)

Young drivers have less experience

b)

Young drivers are more likely to be reckless

c)

Young drivers are more likely to engage in distracted behavior

d)

Young drivers are statistically more likely to be involved in an accident

e)

All of these are risk that make teen driver insurance premiums costly.

22.

How can teen drivers reduce their auto insurance cost?

a)

Make good grades: maintain at least a B average in high school/college

b)

Teen driver discounts

c)

If parents add teens to their policy instead of getting the teen their own policy

d)

Completion of drivers education courses

e)

All of these are ways to reduce auto insurance for teens.

23.

Which of the following is NOT one of the four types of risks?

a)

Natural

b)

Educational

c)

Financial

d)

Economic

e)

Human

24.

Volcanoes, hurricanes, earthquakes, tornados and tsunamis are all examples of ____ risk.

a)

Educational

b)

Natural

c)

Human

d)

Economic

25.

Theft, shoplifting and fraud are all examples of ____ risk.

a)

Financial

b)

Natural

c)

Human

d)

Economic