Why should you purchase insurance?

To prevent financial burden in the case of an accident, theft, etc

An insurance premium is...

the amount of money you pay for an insurance policy.

What should you NOT use a loan to purchase?

Airline tickets to your dream vacation

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Everfi Lesson 7 Insurance

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Questions 10

Answers

1
What will collision insurance cover in the event of an accident?
Damage to someone else’s car
Damage to your car
Bodily injuries
Damage to someone else’s property
2
Insurance that will pay for injury to another driver and/or damage to their car if you are in an accident is called... a
comprehensive insurance.
uninsured motorist insurance.
collision insurance.
liability insurance.
3
What is a risk management strategy you could use to protect your home?
Buying a home security system
Purchasing reflective clothing to wear while biking at night
Installing front porch cameras to monitor your home
A and B (red and blue)
4
The policyholder must pay a ________________, which is the amount you owe before insurance will pay
commission
deductible
contract fee
premium
5
Why should you purchase insurance?
To prevent financial burden in the case of an accident, theft, etc
To purchase monthly premiums
To get a warranty on a household item
To avoid committing a crime
6
An insurance premium is...
a commission paid to the agency for the purchase of a policy.
an extra fee for a claim out of network
the amount of money you pay for an insurance policy.
the amount of money you pay for an insurance claim
7
Buying a home security system is an example of protecting your home against________.
warranties
deductibles
risk
Insurance
8
Wearing a seat belt, not texting when driving, and driving carefully are all examples of...
deductibles.
risk management strategies.
warranties.
insurance policies.
9
protects people from losing a lot of money in the event something happens to them or their property
liability.
Insurance.
risk management.
warranty.
10
What should you NOT use a loan to purchase?
Tuition for higher education
A house
A car
Airline tickets to your dream vacation

Everfi Lesson 7 Insurance Flashcards | StudBud