8.1 Quiz

What is the title given to the charity donation in the document?

• "Life Insurance"

• "Life Happens Fund"

• "Life Happens Insurance"

• "Insurance for Life"

What does insurance protect against?

• Expected financial gains.

• Unexpected financial loss.

• Guaranteed financial success.

• Predictable financial expenses.

What do customers do to shift risk away from themselves?

• Purchase a policy

• Increase their savings

• Invest in stocks

• Avoid insurance

How do insurers manage the risk they take on from customers?

• By increasing premiums

• By spreading it out over their entire customer base

• By reducing coverage

• By investing in real estate

What is the formula for calculating profits in the insurance industry?

• Revenue + Expenses = Profits

• Revenue - Expenses = Profits

• Revenue x Expenses = Profits

• Revenue / Expenses = Profits

What does the term "Term" refer to in insurance terminology?

• The amount of money paid for the policy

• The duration of the policy

• The amount of coverage provided

• The type of policy

How can insurance premiums be paid?

• Only annually

• Only monthly

• All at once or monthly

• Only weekly

In which type of insurance plans is coinsurance most common?

• Auto insurance plans

• Health insurance plans

• Home insurance plans

• Life insurance plans

Who pays the remaining portion if the charge is higher than what insurance companies allow?

• The insurer

• The insured

• The government

• The hospital

How is a rider purchased in relation to an insurance policy?

• As part of the main policy

• Separately from the main policy

• Automatically included

• Only during policy renewal