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Insurance Basics

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

The reason businesses purchase insurance is to

a)

Make a profit

b)

provide financial protection

c)

reduce taxes

d)

increase sales

2.

Insurance that provides coverage for claims by others based on damages suffered as a result of business operations, employees, or products is

a)

Health Insurance

b)

Property Insurance

c)

Vehicle Insurance

d)

Liability Insurance

3.

Premium

a)

a policyholder's request for payment for a loss

b)

the amount the policyholder must pay for insurance coverage

c)

the possibility of incurring a loss

d)

the profit made from insurance

4.

Which of the following is not a type of economic risk

a)

Personal Risk

b)

Property Risk

c)

Liability Risk

d)

All are economic risk

5.

Using another business to complete a risky is known as ____?______ the risk

a)

Assuming

b)

Avoiding

c)

Transferring

d)

Insuring

6.

True or False. Every risk you face results in a loss

a)

True

b)

False

7.

True or False. To be insurable, the same type of risk must be shared by a large number of businesses or individuals.

a)

True

b)

False

8.

A policyholder is

a)

Another term for an insurance company

b)

The person or company buying the insurance policy

c)

The amount paid for insurance coverage

9.

Insurance that provides payment to employees who are not able to work for a long time due to serious illness or injury

a)

Disability Insurance

b)

Health Insurance

c)

Life Insurance

d)

Property Insurance

10.

Insurance that provides compensation for ongoing business expenses that occur if a business temporarily shuts down due to a covered hazard.

a)

Liability Insurance

b)

Vehicle Insurance

c)

Health Insurance

d)

Business Interruption Insurance