Chapter 6
home inventory
A list of items of value in your home
health insurance
A plan for sharing the risk of medical costs
risk reduction
Finding ways to lower your chance of loss is ______.
replacement cost
For insurance purposes what you would pay today to replace an item is the _______.
level term
In which type of term insurance policy will the death benefit remain the same?
liability coverage
Insurance protection against injuries suffered by others on your property as a result of your actions
life insurance
Insurance that pays money to the beneficiary upon the death of the insured person
automobile insurance
Insurance that protects a car owner from losses as a result of accidents and other events
homeowner's insurance
Insurance that protects against risk of loss to a home and its contents
risk avoidance
Not participating in a dangerous activity is _______.
risk assumption
Self-insuring is a form of _______.
Short-Term Disability Insurance
Temporary coverage of non work-related illness or injury is covered by ______.
term life insurance
Temporary insurance that pays only a death benefit
beneficiary
The person designated to receive money from a life insurance policy.
False
True or False: If you have health insurance you do not have to worry about the costs of health care.
True
True or false: A major advantage to HMOs is their focus on preventative care wellness
false
True or false: All risks hae serious potential losses and should be managed with risk avoidance or risk transfer.
False
True or false: High-risk pools offer maximum insurance coverage at high cost to poor drivers.
False
True or false: Homeowner's insurance protects a homeowner from fire damage but does not include liability coverage.
False
True or false: Term insurance is an important part of your permanent life insurance plan.
True
True or false: You can reduce your insurance premium cost by paying annually instead of monthly.
False
True or false: You should assume the risk for large expenses and get insurance to cover small and routine costs.
false
True or false: driving without a spare tire will usually lead to serious personal risk.
True
True or false: having a home security alarm system can reduce your insurance premium.
fee-for-service
Which of the following is considered unmanaged care?
term insurance
Which of the following is known as pure insurance?
liability coverage
Which of the following type of coverage would pay for injuries to guests in your home?
basic health care
Which of the following type of health insurance plan include coverage for medical, hospital, and surgery expenses?
stop-loss provision
a clause that provides 100 percent coverage of medical expenses after a certain amount has been paid by the insured
loss
a physical injury, damage to property, or disappearance of property
renter's insurance
a tenant's policy that protects against the loss of personal property in a rented residence
risk transfer
buying insurance to shift the risk of financial loss
risk reduction
finding ways to lower your chance of incurring a loss
permanent life insurance
insurance that provides a death benefit and builds cash value
disability insurance
insurance that provides income to replace a portion of normal earnings when the insured is unable to work due to non work-related injury or illness
umbrella policy
liability coverage above that of your homeowner's and car insurance
self-insure
setting aside money to be used in the event of injury or loss
risk
the chance of injury, damage, or economic loss
Probability
the likelihood of a risk resulting in a loss
premium
the price paid for insurance coverage
risk assessment
the process of identifying risks and deciding how serious they are
