All State Review

What is the basic definition of insurance?

• A contract that pays someone for lost or damaged property, injury or death

• A financial plan that describes how to build wealth

• A credit to cover cost of damage/injury caused to someone due to accident

• An organization that manages investments and provides financial advice

What is the possibility of loss or injury to an individual called?

• Benefit

• Insurance

• Cause

• Risk

What entity can be contacted to check on insurance agents to file an insurance complaint?

• Safety and Hazard Commission

• Car Dealership

• State Dept of Insurance

• Dept. of Motor Vehicles

After a claim, what is the cost a client must incur before insurance will pay?

• Liability

• Contract

• Deductible

• Premium

Which type of auto insurance covers damage to a car when collision is not involved?

• Personal Property

• Disaster Warranty

• Liability

• Comprehensive

Homeowners Insurance protects the lender as much as the homeowner in case of damage to the home

• True

• False

Insurance is....

• protection against losses or damages

• money spent on needs

• changes from time to time

• money spent on wants

Liability insurance on your car covers:

• your medical bills

• damage to the car you hit

• All answers are correct

• damage to your car

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

• True

• False

Tiffany leaves her car unlocked when she goes shopping. She figures her car and its contents are insured, so there is no reason to worry. Which type of hazard is this an example of?

• Physical

• Morale

• Careless

• Moral