WorksheetsFP2 - 2.01 Practice
Total questions: 20
Worksheet time: 10mins
What is the main topic discussed in the video introduction?
Banking
Insurance
Investments
Real Estate
Insurance helps us maintain ______ of mind knowing that even if something bad happens, someone else is going to pay for what it costs to fix it.
peace
chaos
confusion
stress
Insurance involves a company offering a ______ for a certain risk.
loan
guarantee
payment
discount
What is the main way insurance companies make money?
By spreading risk among many people
By increasing the probability of risk
By reducing the number of insured people
By charging high premiums.
Insurance companies calculate how much money they need to bring in to turn a profit on a given risk with a given ______.
income
probability
number of people
premium
Why do most insurance companies specialize in their own kind of insurance?
To reduce competition
To develop complex models for profit
To offer the same insurance as others
To avoid risk.
Fill in the blank: If you estimated that 1 in 100 houses burned down each year but it was actually 5 in 100, then you'd be ______.
A) Profiting
B) Breaking even
C) Losing money
D) Gaining customers
Which of the following is NOT a type of insurance mentioned in the text?
Auto
Health
Life
Travel
Fill in the blank: Some insurance policies, like ______ insurance, are legally required to be held.
Health
Auto
Life
Home
What is the risk if you save $200 a month for a year instead of getting home insurance?
You will have $2400 extra at the end of the year.
You will be exposed to the risk of losing a few hundred thousand dollars if your house burns down.
You will have to pay more taxes.
You will have to pay a higher insurance premium next year.
What is the primary purpose of insurance as described in the text?
To increase financial burden
To transfer risk to a larger company
To eliminate all risks
To provide immediate financial gain.
Why do some individuals have parts of their body insured?
For health reasons
Because their image is a source of their income
To avoid taxes
For legal requirements.
Reinsurance is when an insurance company wants to buy insurance on their own ______.
Assets
Employees
Insurance policies
Investments
In the context of insurance, a hot summer increases the risk of ______.
floods
home fires
earthquakes
theft
What is the purpose of reinsurance for insurance companies?
To increase profits
To ensure they remain solvent and can pay claims
To avoid paying taxes
To reduce employee costs.
Insurance companies may not automatically pay out claims if there is a suspicion of ______.
Honesty
Fraud
Generosity
Error
What is the consequence of intentionally crashing your car to get an insurance payout?
You receive the payout
It's considered fraud and you can go to jail
The insurance company ignores it
You get a warning.
Faking insurance claims is seen by some as a way to either get a big cash windfall or get out of a ________ payment they can't afford.
car
house
both car and house
none
What is one of the roles of top-of-the-line investigators in the insurance industry?
To make faulty payouts
To ensure faulty payouts are not made
To increase insurance premiums
To decrease consumer trust.
Insurance is considered a ______ formula for all parties involved.
losing
risky
winning
uncertain
