Risk Management/Purchasing Insurance

Which types of insurance are most appropriate for a single, working, 24-year-old? (hint: choose 3 correct answers)

• Health insurance

• Disability insurance

• Life insurance

• Auto insurance

What role does insurance play in financial planning?

• It guarantees that income and assets are protected

• It helps build and maintain one's credit score

• It helps cover day-to-day expenses

• It grows in value and appreciates over time

The out of pocket cost to the insured when a loss occurs is called...

• Premium

• Deductible

A stone hits your windshield. Which type of coverage would likely cover this expense?

• Collision

• Liability

• Comprehensive

• None

Which of the following wouldn't save you money on your auto insurance premium?

• Decrease your deductible

• Reduce or eliminate optional insurance on an older vehicle

• Maintain a good credit history

• Bundle your insurance with other policies

Your health insurance copay is

• Amount paid out of pocket before your insurance coverage

• Paid by the insurer

• Applied on an annual basis

• A fixed amount of money you pay each time you use your plan

Which of the following would be covered under a renter's insurance policy?

• Damage to the exterior of the property

• Medical bills of another person who is injured on the property

• Your roommate's personal belongings in the rental unit

• Damage to a detached shed on the property

True or False: Insurance is based on the concept of shared risk, or risk pooling.

• True

• False

This insurance is required by law on the road

• Auto

• Auto Property

• Auto Liability

• Long-Term Care

A gentleman is injured at work at a construction site. He will not be able to work for two months. What insurance supports his injury?

• Long Term Care

• Home Liability

• Health

• Disability