Chapter 6 Insurance

Front

A policyholder's formal request to the insurance company for payment of loss.

Back

Claim

Front

The amount of money that policyholders must pay toward their own covered expenses before the insurance company pays any of the costs is know as ______

Back

Deductible

Front

Which term refers to the percentage of covered medical expenses you are responsible for paying after your deductible is met?

Back

Co-Insurance

Front

What role does insurance play in financial planning?

Back

It helps protect against financial loss

Front

The purpose of insurance is to make you financially better off than you were before the loss occurred.

Back

False

Front

Buying insurance is an example of which risk management strategy?

Back

Risk Transfer

Front

Which of the following would not be covered by regular homeowner's insurance policy? Fire Damage, Tree falling on the roof, Flood damage from a storm, Vandalism

Back

Flood damage from a storm

Front

Wearing your seatbelt is what type of risk management strategy?

Back

Risk Reduction

Front

Which of the following covers you if you are temporarily unable to work due to a non-work related illness or injury? Long-term disability, Short-term Disability Insurance, Basic Health Insurance, Worker's Compensation

Back

Short-term Disability Insurance

Front

Quitting Smoking is what type of risk strategy?

Back

Risk Avoidance