Chapter 15

Cyber risk insurance is also known as:

Cyber Insurance coverage

Purchasing insurance should involve:

Determining what types of insurance you need Determining the ideal monetary amount of coverage Selecting a specific insurance company

An accountant is a mathematician or statistician who computes insurance risks and establishes premium rates.

False

Insurance, or, protection from risk, makes good financial sense, but is never required by law.

False

Once a hospitality company complies with the Payment Card Industry Data Security Standard, they are protected from liability due to a breach of their data system.

False

Data breach insurance coverage will sometimes be included in a business':

General Liability Coverage

Which of the following is one of the three primary categories of insurance policy types?

Health Insurance

The Affordable Care and Patient Protection Act is known as:

Obamacare

EPLI insurance provides coverage for all of the following types of claims except:

Property Damage by Fire

Workers' Compensation:

Provides injury-related insurance to those workers who were hurt while on the job

A "premium" is the amount paid for insurance coverage-whether one lump sum or over time.

True

Cyber extortion coverage may be purchased as part of the cyber insurance policy.

True

Dram shop insurance provides coverage relating to the sale of consumption of beverages containing alcohol.

True

Earthquakes and floods are examples of "Acts of God".

True

Financial protection, which comes from property-liability insurance, is also known as indemnification.

True

If an insurance company is not financially sound, then your property is not necessarily covered, even if there is a written contract between the insurer and the insured.

True

Liability insurance ordinarily provides coverage when a guest slips and falls.

True

To assume agreed-upon maximum levels of liability in the event of a loss or damage is known as:

Underwriting

An "umbrella" as it relates to insurance:

is the maximum amount that can be paid for all claims during a policy period Is the amount of insurance provided by a traditional insurance policy

International insurance claims are generally less than U.S. claims due to:

no punitive damages fewer claims international countries are less litigious