Personal Finance: Chapter 8

Medical payments coverage applies to medical expenses of a. Anyone in your vehicle, including you b. Anyone in your vehicle who is injured, except the driver c. The driver, but no passengers who are injured d. The owner of the vehicle, but not other passengers e. The uninsured motorist who causes an accident

a. Anyone in your vehicle, including you

Barbara left a skateboard on her front steps. Her neighbor then tripped on the skateboard and was injured. The skateboard is a a. Hazard b. Negligence c. Peril d. Premium e. Risk

a. Hazard

An individual who purchases insurance is a. The insurance company b. A policyholder c. An insurer d. A victim e. An employer

b. A policyholder

An insurance company will Select one or more: a. Insure speculative and pure risks b. Insure pure risk, but not speculative risk c. Insure neither pure risk nor speculative risk d. Insure speculative risk, but not pure risk e. Insure all types of risks

b. Insure pure risk, but not speculative risk

The failure to take ordinary or reasonable care to prevent accidents from happening is called a. Hazard b. Negligence c. Peril d. Premium e. Risk

b. Negligence

Liability is defined as: a. An insurance program for individuals and households b. The legal responsibility for the financial cost of another person's losses or injuries c. Negligence d. A loss due to physical damage e. Risk assumption

b. The legal responsibility for the financial cost of another person's losses or injuries

If you choose to wear your seatbelt, you are using Select one or more: a. risk avoidance b. risk reduction c. risk assumption d. risk shifting e. risk increasing

b. risk reduction

Motor vehicle coverage typically includes all except a. Most legal expenses b. Bodily injury liability up to a specific level for all injured in an accident c. Medical payments up to policy limit d. Bodily injury liability of all expenses, no matter the cost, for the most injured e. Uninsured motorist's protection

d. Bodily injury liability of all expenses, no matter the cost, for the most injured

The two basic types of risk that people face regarding their personal property are a. Basic and criminal b. Physical damage and destruction c. Destruction and basic d. Physical damage and damage caused by criminal behavior e. Negligence and criminal behavior

d. Physical damage and damage caused by criminal behavior

Homeowner's insurance covers all except a. a detached garage b. tree and shrubs c. a tool shed d. personal property e. all of these are covered

e. all of these are covered