Personal Finance Ch. 25-26 (Insurance)

Question 1

This is property insurance that covers a policy holder's belongings within a renter's property.

Accepted Answer

Renter's Policy

Question 2

This is a Person/company that underwrites an insurance risk

Accepted Answer

Insurer

Question 3

This is the amount to be paid for an insurance policy

Accepted Answer

Premium

Question 4

What is a situation involving exposure to danger?

Accepted Answer

Risk

Question 5

This is part of an agreement that provides for one party to bear the monetary costs

Accepted Answer

Indemnification

Question 6

This protects an individual/business from the risk of being sued and held liable for something

Accepted Answer

Liability Policy

Question 7

Course/principle of action adopted or proposed by a gov't, party, business, or individual

Accepted Answer

Policy

Question 8

These are used to protect the purchases from the risks of liabilities imposed by lawsuits

Accepted Answer

Liability Risks

Question 9

This is a document detailing the terms and conditions of a contract of insurance.

Accepted Answer

Insurance Policy

Question 10

This is the risk of theft, loss, or damage to your personal property

Accepted Answer

Property Risk

Question 11

The extent to which something is probable.

Accepted Answer

Probability

Question 12

For this category of risk, loss is the only possible outcome. There is no beneficial result

Accepted Answer

Pure Risk

Question 13

Uncertainty about an event under consideration that could produce either a profit or a loss

Accepted Answer

Speculative Risk

Question 14

How does an insurance policy work?

Accepted Answer

It spreads out risk

Question 15

This is property insurance that covers a policy holder's belongings within a home.

Accepted Answer

Homeonwer's Policy

Question 16

This practice guarantees compensation for specified loss

Accepted Answer

Insurance

Question 17

This is a basic requirement for an insurance company to issue a policy

Accepted Answer

Insurance Policy

Question 18

An act of giving one's public approval or support to someone/something

Accepted Answer

Endorsement

Question 19

What are the three steps in the risk management process?

Accepted Answer

Identify, Asses, and Manage

Questions 19