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

Everfi Lesson 7 Insurance Flashcards | StudBud