Chapter 10: Insurance and Risk Management Quiz

1 point(s)

Which of the following types of insurance provides income in case of a disability?

Health Insurance

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Life Insurance

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Disability Insurance

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Homeowner's Insurance

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1 point(s)

What is the main purpose of an insurance premium?

To cover routine expenses

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To safeguard against potential future losses

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To increase savings

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To avoid taxes

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1 point(s)

Which type of insurance would a young, single professional most likely prioritize?

Life Insurance

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Health Insurance

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Homeowner's Insurance

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Pet Insurance

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1 point(s)

Insurance operates on the principle of pooling risk among a community of people.

True

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False

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1 point(s)

Misrepresentation to an insurer can lead to denied claims or policy cancellation.

True

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False

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3 point(s)

Definition

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A contract between an individual and an insurance company outlining coverage
The amount of money paid for insurance coverage over a specified period
The amount paid out of pocket before insurance covers the remaining costs of a claim

Policy

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Premium

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Deductible

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3 point(s)

Definition

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Covers medical expenses for illnesses, injuries, and conditions
Provides a monetary benefit to a decedent's family or other beneficiary upon the insurer's death
Covers damages to the home and personal property

Health Insurance

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Life Insurance

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Homeowner's Insurance

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1 point(s)

Arrange these types of insurance from most essential to least essential for a young, single professional: Health Insurance, Life Insurance, Homeowner’s Insurance. (put the most essential at the top)

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1 point(s)

Rank these types of insurance from highest to lowest premium cost: Life Insurance, Auto Insurance, Disability Insurance. (put the highest premium at the top)

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1 point(s)

Why is it important to regularly review and update your insurance coverage?

This response will be reviewed and graded after submission.

Chapter 10: Insurance and Risk Management Quiz