A person buys a homeowner's policy with a $250 deductible, which means the person will

pay the first $250 and that is deducted from settlement paid

Insurance is frequently described as a method of "sharing the risk" because the

Insured shares risk of loss with all other policy holders

The purpose of insurance is NOT to

Diversity an investment portfolio

Ben's truck is crushed by a hit-and-run driver. What type of coverage will pay for damages?

Uninsured or no-fault motorist coverage

When a self-employed person decides to purchase disability insurance it is generally to

protect against the financial effects of being out of work

studbud

W!se Financial Literacy INSURANCE Review

11 termsStudBud Administration49 plays

Review questions for the W!se Financial literacy certification related to insurance #insurance #financialliteracy #wisecertification #wse #economics

Flashcards11 cardsFPractice quizPHost liveL

Questions 11

Answers

1
A person buys a homeowner's policy with a $250 deductible, which means the person will
have to pay a quarterly premium of $250
receive payment from insurance company of $250 for claim
not be responsible for the first $250 of the claim damages
pay the first $250 and that is deducted from settlement paid
2
What does comprehensive insurance cover?f
All answers are correct
Damage should you hit an animal.
Damage to your car caused by an event other than a collision
Theft
3
You have a $2,000 loss.Your insurance co. pays $1,500 on the claim. The $500 difference is a
Hazard clause
Premium
Deductible
Co-insurance clause
4
Insurance is frequently described as a method of "sharing the risk" because the
Risk of loss is shared with the insurance sales person
Insured shares risk of loss with all other policy holders
Insured can share risk by spreading the cost over many years
Risk of loss is shared with the government
5
The purpose of insurance is NOT to
Protect against potential losses
Share risk with other policy holders & the insurance company
Protect assets
Diversity an investment portfolio
6
Ben's truck is crushed by a hit-and-run driver. What type of coverage will pay for damages?
Insolvent motorist coverage
Uninsured or no-fault motorist coverage
Auto liability coverage
State motorist coverage
7
When a self-employed person decides to purchase disability insurance it is generally to
protect against the financial effects of being out of work
lessen the possibility of becoming injured
eliminate the chance of going out of business
insure costs of injury caused to others will be reimbursed
8
Which auto insurance will repair damages to your vehicle when something collides with it?
Comprehensive
Collision
Disability
Liability
9
Debbie owns a store & is concerned a customer who is injured in her store may sue, she needs
Surety bonds
Liability Insurance
Life insurance
Social insurance
10
Sally took out a $50,000 life insurance policy. The $50,000 amount of coverage is called the
Cash value
Annuity value
Death benefit or face value
Premium value
11
Generally, the higher the deductible on an insurance policy, the
lower the premium
greater the premium
less frequently the premium has to be paid
more frequently the premium has to be paid

W!se Financial Literacy INSURANCE Review Flashcards | StudBud