Finance Test 3 Flashcards

The basic purpose of insurance is to _____.

The purchase of insurance is a common form of ____ by the insured.

The probability of a loss occurring can be reduced by_____ .

Insurance underwriting is best described as:

The primary purpose of life insurance is to provide:

Actuarial data is used to measure:

_____ is an activity that reduces the chance that a loss will occur.

The single most valuable technique in personal risk management to assist an individual in determining how much life insurance is needed is:

Identify a true statement about the multiple-of-earnings method.

Term life insurance is characterized by _____.

If a term life insurance is convertible, the policy can be:

Henry must make set premium payments on his insurance policy until he dies, and if he cancels the policy, he will receive the cash value. His plan is a _____ policy.

Employers often provide _____ life insurance as a fringe benefit for their employees.

A grace period permits the policyholder to retain insurance even though the premium has not been paid for:

Nonforfeiture rights guarantee that a policy owner will not lose his or her _____.

Advances in medical technology, drug prescriptions, and treatments have substantially reduced the cost of health care in recent decades.

You would have a better chance of choosing your own doctor with a PPO than with an HMO.

A preferred provider organization has characteristics of both Individual practice association (IPA) and an indemnity plan.

Generally, insurance is more reasonably priced through group plans than as individual policies.

Living a healthy lifestyle is an example of loss prevention and control.

During the past few decades, the percentage of our income spent on health care:

Which of the following is true of the workers' compensation insurance?

Which of the following is true of the health care industry?

Group health insurance premiums are _____.

One of the key goals of the Affordable Health Care Act of 2010 is _____.

Which of the following programs is a public assistance program that provides health insurance benefits only to those who are unable to pay for healthcare?

Employees should consider risk assumption for certain health risks as:

Long-term care is a term used to describe _____.

In order to qualify for disability insurance under social security, a person must be:

Dependent children will usually be covered under your health insurance

Negligence results when someone:

The principle of indemnity would prevent:

A liability suit could result against you when:

Which homeowners' policy is best suited for a renter of an apartment?

A personal property floater:

Section I of the homeowner's insurance policy covers:

Section II of the homeowner's insurance contract covers:

A higher home insurance cost may result from:

Replacement cost coverage is the reimbursement of:

Donna, who is single and 30-years-old, has received several speeding tickets recently and was shocked by the effect they had on her auto insurance. Which of the following actions is most likely to help Donna reduce the price of her auto insurance?

A homeowner's policy does not provide protection for the personal property of:

Auto insurance is needed primarily:

Liability coverage provides payment to:

Comprehensive automobile coverage refers to:

A personal liability umbrella policy typically includes:

A house with a replacement value of $110,000 is currently insured for $90,000. The house has suffered a $15,000 loss from windstorm damage. The insurance company will pay the full $15,000 less the deductible.

Funds for Medicare benefits come from _________.

Workers' compensation insurance would make compensation payments to an injured worker only if he or she had been hurt ______.

From the standpoint of the person buying insurance, the central purpose of insurance should be:

Insurance is a tool that can reduce _____ risk.