BUS Personal Finance 147
Which of these strategies help reduce the financial impact of disability?
- Drawing upon savings & investments during our disability - Collecting social security (public) disability income - Collecting disability income from a disability insurance policy
Insurance provides protection against many types of risks including all of the ones, EXCEPT:
- gambling - insuring values of stocks & bonds
The financial impact of death includes:
- loss of income - loss of services - final expenses
Which of the following are general risk management techniques?
- risk reduction - risk avoidance - risk assumption
The main types of risks related to a home and automobile are
- your responsibility for damage to the property of others - your responsibility for injury to others - damage or loss to your property
Defective house wiring is an example of:
A hazard
True or False: According to the text, your owner's insurance covers damage to your home and any other structures on your property.
True
True or False: Comparison shopping can usually help to lower the premiums on your home owner's insurance policy.
True
True or False: Home owner's insurance covers damages to your home due to many perils, such as fire and windstorm, and it also covers personal injuries received by persons on your property.
True
True or False: Life insurance is a financial strategy to deal with the financial impact due to the death of a spouse.
True
True or False: Life insurance replaces income lost when the policy holder dies.
True
True or False: Physical damage to a property is caused by perils such as fire, wind, water, and smoke.
True
True or False: The best risk management plans are flexible enough to handle life's changing situations.
True
The price paid for insuring your home and your car should be thought as
an investment for protecting our resources
Increasing your deductible lowers your premium.
deductible
Insurance is a protection against possible financial loss, and provides protection against many risks
financial, risks
The legal responsibility for the financial cost of another person's losses or injuries is known as
liability
All of the following can be classified as criminal behavior, which can cause property losses, EXCEPT:
negligence
Not clearing ice from the front steps of your house is an example of negligence which is failure to take ordinary or reasonable care.
negligence
Automobile insurance covers property damage and personal damage (bodily injury) caused by the policyholder's car.
property
One of the key goals when planning insurance is to
reduce possible loss of income
The main factors that influence premiums for automobile insurance are:
vehicle type, rating territory, and driver classification
