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chapter 14 test

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Define "risk"

a)

Predictability

b)

 the possibility of incurring a loss

c)

 loss of personal or business property

d)

Personal, property, liability

2.

what is liability risk?

a)

harm or injury to others or their property

b)

a policyholder’s request for payment for a loss that the insurance policy covers.

c)

I don't know

3.

controlled risk

a)

can not be reduced or eliminated

b)

financial loss

c)

can be reduced or eliminated

4.

Is Weather a controlled risk?

a)

sometimes

b)

yes

c)

no

5.

what are the 4 ways of dealing with risk?

a)

controlled, jail, love, money

b)

harm or injury to others or their property

c)

avoid, transfer, insure, and assume

d)

uncontrollable, weather, tornado and flood

6.

property rights

a)

the exclusive rights to possess and use property and its profits.

b)

exchanges the uncertainty of a possible $ loss for a smaller payment

c)

loss of personal or business property

d)

what is a property right?

7.

counterfeiting

a)

legal uses of intellectual property, patents, trademarks, and copyrights.

b)

 illegal uses of intellectual property, patents, trademarks, and copyrights.

c)

the exclusive rights to possess and use property and its profits.

d)

intellectual property, patents, trademarks, and copyrights.

8.

international property rights

a)

Patent 

Trademark 

Copyright 

Counterfeiting 

b)

 

Insuring personnel 

Health insurance

Life insurance 

Disability insurance

c)

type

quality

d)

Policyholder

Insurance policy 

Premium 

Claim

9.

What are the 3 major areas that can be covered by business insurance?

a)

Personal 

Property,Business operations

b)

Insurable risk 

Risk and amount of loss must be predictable 

If the cost is too high, businesses must find other ways to deal with those uninsurable risks

c)

reducing risk

transfer

avoid

10.

premium

a)

a policyholder’s request for payment for a loss that the insurance policy covers.

b)

the amount a policyholder must pay for insurance coverage.

11.

claim

a)

a policy stating the conditions to which the insurance company and the policyholder have agreed.

b)

a policyholder’s request for payment for a loss that the insurance policy covers.

c)

disability insurance

d)

my life

12.

insurance policy

a)

: a policyholder’s request for payment for a loss that the insurance policy covers.

.

b)

the amount a policyholder must pay for insurance coverage

c)

a policy stating the conditions to which the insurance company and the policyholder have agreed.

13.

policyholder

a)

policyholder

b)

a contract

c)

insurance

d)

the person/company buying the insurance

14.

insurer

a)

the contract of the insurance

b)

a company that agrees to take on certain economic risks and to pay for losses if they occur.

c)

the amount of money paid for insurance

d)

what is a insurer?

15.

insured

a)

the person or business for which the insurer assumes the risk.

b)

the person buying the insurance

c)

a company that agrees to take on certain economic risks and to pay for losses if they occur.

16.

insurance

a)

car

b)

health

c)

exchanges the uncertainty of a possible $ loss for a smaller payment

d)

the person or business for which the insurer assumes the risk.

17.

pure risk

a)

no chance of failure, gain a lot of money

b)

loss of money

c)

no gain

d)

chance of failure, no opportunity for gain

18.

property risk

a)

loss of personal or business property

b)

transfer and avoid the risk

c)

cheap labor

d)

buying because of loss

19.

personal risk

a)

losses to health or healthy being 

b)

ice cream

c)

investment loss

d)

yelling

20.

economic risk

a)

financial loss

b)

losses to health or healthy being

c)

can be reduced or eliminated