Chapter 8

Motor vehicle crashes cost over ______ in lost wages and medical bills every year.

$150 billion

An individual who purchases an insurance policy is called

A policyholder.

Which of the following is a type of motor vehicle insurance available to drivers?

All of the these may be available to drivers

The best place to keep a household inventory is

In a safe deposit box.

The main goal when setting insurance goals is to

Minimize personal, property, and liability risks.

The failure to take ordinary or reasonable care to prevent accidents from happening is called

Negligence.

Anything that may possibly cause a loss is called a

Peril.

Personal property insurance covers

Personal property items up to 55-75% of the insured value of the home.

The two basic types of risk that people face regarding potential property losses are

Physical damage and damage caused by criminal behavior.

What is the fee that a policyholder pays when an insurance company agrees to take on the risk?

Premium

If you choose to take responsibility for the negative results of a risk, you are using

Risk assumption.

Liability is defined as

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

A policy that supplements your basic personal liability coverage is called a(n)

Umbrella policy.

Various states are trying to reduce the time and cost of settling vehicle injury cases. One alternative is

Using the no-fault system.