Insurance

Most insurance policies, no matter what type or kind, have exclusions. What are exclusions?

• provisions that become active at times of disasters or national distress

• special provisions the give extra care and attention in natural disasters

• provisions that deny coverage for expenses arising because of a specific event

• exclusive provisions that take effect on good clients who avoid accidents, etc.

Which type of insurance pays an insured person an income when that person is unable to work because of accident or illness?

• Life Insurance

• Health Insurance

• Property Insurance

• Disability Insurance

Which is NOT an essential component of a standard homeowners insurance policy?

• property reimbursement

• liability for accidents

• provisions for natural acts

• earthquakes and water damage

What is the primary purpose of insurance?

• To pay for your mistakes

• To take money away from you

• To protect you against a financial loss

• To allow you to do things you couldn't do

Aiden is considering types of insurance to cover his newly-purchased home near a river. Aiden should MOST LIKELY research

• if his health insurance includes injuries due to construction.

• if his life insurance premiums will decrease due to owning a home.

• if his property insurance policy will include flood damage benefits.

• if his automobile insurance rates will increase at his new location.

An automobile insurance policy with a higher premium will MOST likely have

• no liability.

• a lower liability.

• a lower deductible.

• a higher deductible.

Shanna's mortgage company requires insurance coverage. Which type of insurance would she need?

• automobile

• disability

• life

• property

What is the primary way in which insurance allows you to be covered for a loss, even if you haven't had it for very long?

• You get money from them.

• You pay more money later.

• You share the risk with others.

• Insurance helps you to avoid things.

David considers himself to be a responsible and safe driver. He has never been in an accident and never received a speeding ticket. He is looking for the minimal amount of automobile insurance possible. Which type of coverage best fits David's goals?

• liability coverage

• collision coverage

• comprehensive coverage

• uninsured and underinsured motorist coverage

Which statement BEST explains why insurance companies charge higher premiums for high-risk individuals and events?

• High-risk events occur more often than low-risk events.

• These people pay higher federal and state income tax rates.

• The risk of monetary loss is greater for these people and events.

• High-risk individuals spend more money than low-risk individuals.