Standard 11: Insurance

While planning for your summer vacation, you decide not to go four-wheeling because it is dangerous.

• Risk Avoidance
• Risk Reduction
• Risk Retention
• Risk Transfer

Your friend rides a four wheeler and says he does not worry about the risk even though he knows it is dangerous.

• Risk Avoidance
• Risk Reduction
• Risk Retention
• Risk Transfer

Your summer vacation plans include water skiing at the lake, and you take both skiing and swimming lessons to learn more about safety.

• Risk Avoidance
• Risk Reduction
• Risk Retention
• Risk Transfer

Your parents keep you on their health insurance even after you are in college in case you get hurt.

• Risk Avoidance
• Risk Reduction
• Risk Retention
• Risk Transfer

The principle of risk is based on the premise of

• known loss.
• certainty.
• uncertainty.
• irresponsibility.

Which of the following statements is true about risk?

• Risk is part of our daily lives.
• Risk is only caused by outside forces on our lives.
• If we buy enough insurance, we can eliminate risk in our lives.
• Because we live in Oklahoma, we know a tornado will hit our town.

You decide to move into an apartment. Which kind of insurance will provide protection for your personal property?

• Liability Insurance
• Renter’s Insurance
• Property Insurance
• Long-Term Care Insurance

Which type of insurance provides coverage upon a person’s death, but only for a specified period of time?

• Whole Life

• Universal Life

• Term Life

• Long-Term Care Insurance

You have friends over for a party. Tad accidentally falls down the stairs and breaks a leg. Which kind of insurance protects you if Tad decides to sue or asks for medical assistance?

• Liability Insurance
• Renter’s Insurance
• Long-Term Care Insurance
• Health Insurance

The amount of out-of-pocket money you pay before your insurance begins to provide coverage is called the

• premium.
• copay.
• deductible.
• benefit.