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ITB 33 & 03-04-9 Insurance & Mitigating Risk

Total questions: 47

Worksheet time: 22mins

Name
Class
Date
1.

The possibility of having a loss is ______________.

a)

insurance

b)

liability

c)

protection

d)

risk

2.

Amount a policy holder must pay for insurance coverage?

a)

coverage

b)

premium

c)

deductible

d)

bond

3.

What a person needs to protect against loss; form of risk protection?

a)

insurance

b)

premium

c)

claim

d)

indemnify

4.

Person or company who buys the policy?

a)

policy adjuster

b)

policy holder

c)

insurance agent

d)

adjuster

5.

The risk that one may be sued or held responsible for injury or damage to another is called ______________.

a)

coverage

b)

claim

c)

liability

d)

collision

6.

Person who investigates insurance claims and recommends a settlement?

a)

agent

b)

broker

c)

adjuster

d)

Jake

7.

Amount the insured must pay before the insurance company pays a claim?

a)

$500

b)

premium

c)

$100

d)

deductible

8.

A contract between an insurance company and policy holder that explains the amounts and types of coverage?

a)

policy

b)

term life

c)

insurer

d)

tax form

9.

Request for payment from an insurer for any loss or damages covered by the insurance policy?

a)

policy

b)

deductible

c)

claim

d)

coverage

10.

The company who agrees to supply coverage or protection?

a)

insured

b)

coverage firm

c)

INS

d)

insurer

11.

Participating in insurance is BEST considered an example of risk __________ .

a)

Mitigation

b)

Transfer

c)

Acceptance

d)

Avoidance

12.

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

13.

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

a)

Insured

b)

Insurer

c)

Homeowner

14.

Earthquakes, typhoons, and tsunamis are threats, which is also called ______________

a)

Hazard

b)

Disaster

c)

Capacity

d)

Vulnerabilty

15.
The amount paid for insurance is the
a)
closing cost
b)
premium
c)
deductible
d)
assessed value
16.

Insurance can help you:

a)

minimize monthly expenses

b)

protect against unexpected accidents

c)

reduce the chances o fgetting into an accident

d)

cover all out of pocket costs

17.

The out of pocket cost to the insured when a loss occurs is called...

a)

Premium

b)

Deductible

18.

What information is typically listed on an insurance policy? (hint: choose 3 correct answers)

a)

Name of person or property being insured

b)

Actual Cash Value of the property being insured

c)

Deductible amounts

d)

The policy period

19.

True or False: Insurance is based on the concept of shared risk, or risk pooling.

a)

True

b)

False

20.
Insurance that protects your family against financial loss due to your death is
a)
coinsurance
b)
disability insurance
c)
life insurance
d)
comprehensive insurance
21.
This term pays for protection against loss of life, property, and finances.
a)
collision
b)
premium
c)
insurance
d)
deductible
22.
The amount you MUST pay out of pocket before insurance takes over is called the
a)
premium
b)
bonus payout
c)
term payment
d)
deductible
23.

What is the main purpose of insurance?

a)

to follow the law

b)

to get weathly

c)

For investment purposes

d)

To reduce risk

24.

Chance of loss

a)

Policy

b)

Policy holder

c)

Premium

d)

Risk

25.
Insurance can help you:
a)
minimize monthly expenses
b)
protect against unexpected accidents
c)
reduce the chances o fgetting into an accident
d)
cover al lout-­‐of-­‐pocket costs
26.
Jan pays $70 each month for her auto insurance policy. This regular payment is called a:
a)
co-­‐pay
b)
deductible
c)
premium
d)
claim
27.
Life is filled with risk. Every decision involves risk with some more than others.
a)
TRUE
b)
FALSE
28.
The purpose of insurance is to completely transfer risk to other people.
a)
TRUE
b)
FALSE
29.

You can manage risk by doing all the following except?

a)

Avoid It

b)

Reduce It

c)

Share It

d)

Do all risky things

30.

Risk is

a)

measures taken to prevent harm

b)

a situation involving danger

c)

obligation to pay

d)

a demand or request

31.

Risk Management is...

a)

likelihood something will happen

b)

one who owns the insurance

c)

actions taken to prevent danger

32.

Insurance is...

a)

obligation to pay

b)

a demand or request to pay

c)

a risk management technique

33.

Coverage is...

a)

a demand to pay

b)

a demand or request for something

c)

the extent of protection by a policy

34.

Liability is...

a)

obligation to pay

b)

a contract between the insurer and insured

c)

likelihood that something will happen

35.

When you do not buy insurance you are using which of the choices below to eliminate risk?

a)

Avoid

b)

Reduce

c)

Transfer

d)

Assume

36.

Installing a burglar alarm at your home is using which of the choices below to eliminate risk?

a)

Assume

b)

Transfer

c)

Avoid

d)

Reduce

37.

Quarterly refers to how many times per year?

a)

6

b)

4

c)

8

d)

2

38.
Assists with income due to injury or illness. Also provides worker compensation if hurt on the job.
a)
Life
b)
Disability
c)
Health
39.
Covers damage to vehicle/occupants in case of an accident.
a)
Life
b)
Auto
c)
Homeowners
40.
Covers property losses.
a)
Homeowners
b)
Auto
c)
Disability
41.
Money sent to family members after you die.
a)
Auto
b)
Health
c)
Life
42.
Provides assistance with medical needs.
a)
Health
b)
Auto
c)
Life
43.
Provides assistance with medical needs.
a)
Health
b)
Auto
c)
Life
44.
The potential of gaining or losing something of value
a)
asset
b)
liabilities 
c)
risk
d)
return
45.

A cause of loss (earthquake, fire, theft)

a)

liability

b)

peril

c)

risk

d)

deductible

46.

Which word means "danger."

a)

discrepancy

b)

engross

c)

peril

d)

pensive

47.

Which word would means "lasting forever."

a)

burgeon

b)

perpetual

c)

pensive

d)

proficient