Quiz #3 Chapter 11, 12 &13
Which of the following is not true as it relates to the cost of healthcare?
Better claim handling and processing has helped reduce the cost of healthcare
Insurance agents who work for one particular company are called
Captive agents
The bodily injury liability coverage of your automobile policy will not pay for
Injuries to others in your car due to an accident that you caused
The primary function of insurance is to
Insure you against all types of risk
The 100 in 100/300/50 refers to the
Limit for bodily injury claims that can be paid to one person
In general, insurance companies generate their revenues from
Receiving payments for policies and investing the proceeds from premiums until the funds are needed to cover losses
The cost of healthcare has risen dramatically in recent years due to all of the following, except
Reduced litigation costs
Lessening your exposure to an illness by getting periodic health checkups is an example of
Reducing risks
Insurance is not a good option for managing risk when
The probability of loss is very small and the expected loss is very small
Which risk management alternative is feasible when the likelihood of an event that could cause a financial loss is very low and the potential financial loss due to the event is small?
Accept risk
The insurance agent's role includes all of the following, except for
Assessing the client's risk of loss
If you have a car accident in which a person in the other car is injured, the type of insurance that would protect you from financial loss is
Auto insurance
Having liability coverage as part of auto and homeowner's policies helps protect your ________ in the event of an accident.
Credit rating
People are more willing to purchase or increase their insurance coverage when
Economic conditions are favorable and incomes are higher
Which of the following is not a popular form of insurance for individuals?
General liability insurance
Which of the following statements regarding health insurance is not true
Health insurance is offered by private insurance companies and the government
________ is not a suggested risk management method.
Ignoring risks
Which of the following is not a service company that would rate the financial condition of insurance companies?
Kelly Blue Book
Having a large deductible on your auto or homeowner's insurance is a form of
Managing risk, self-insuring risk, and financial decision-making
Underwriters for an insurance company do not
Market insurance policies
The 25 in 50/100/25 refers to the
Property damage liability coverage
Independent insurance agents
Represent many different insurance companies
Which of the following is not true about state financial responsibility laws?
They are the same for all states
The comprehensive and collision premium of a Rolls-Royce in relationship to a Chevy
Will be higher than the Chevy