18 Questions
What is the main purpose of insurance?
Indemnifying the insured after a loss
How does insurance help manage cash flow uncertainty?
By reducing the variation in cash flows related to covered losses
Which of the following is NOT a benefit provided by insurance?
Eliminating the need for deductibles
What is one of the potential costs associated with insurance?
Premiums paid by insurers
Which type of insurance helps employers meet legal obligations for job-related injuries or illnesses?
Workers’ compensation insurance
What is one additional benefit of insurance besides helping regain footing after a loss?
Assisting in meeting legal requirements
What is one benefit of insurance mentioned in the text?
Encouraging insured's loss control activities
How is insurance viewed as per the text?
As a business and a contract between insured and insurer
What is a cost associated with insurance mentioned in the text?
Opportunity costs
Which types of insurance policies mainly cover personal loss exposures?
Property-casualty insurance policies
What do commercial insurance policies often combine, according to the text?
Property and liability coverages
What is insurance primarily considered as?
A risk transfer system
Which of the following statements best describes a potential drawback of insurance for policyholders?
Premiums paid to insurers could be used for immediate needs instead.
According to the passage, which of the following statements is true regarding insurance?
Insurance provides protection against unforeseen events that could cause financial hardship.
Which of the following is NOT mentioned as one of the major roles of insurance in the passage?
As a financial investment
According to the passage, which of the following statements is true regarding fraudulent insurance claims?
Fraudulent claims increase costs for both insurers and policyholders.
Which of the following statements best describes the role of insurance as a business?
Insurance companies generate revenue by collecting premiums and investing funds.
According to the passage, which of the following statements is true regarding the need for insurance?
Insurance is sometimes required to satisfy contractual obligations.
Explore the benefits and costs of insurance for individuals, organizations, and society. Learn about loss control activities, resource efficiency, credit support, investment funds, and social burden reduction.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
