Insurance, Buying a Car and a Home

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

Contract that defines the type of losses that are covered, amount of coverage in dollars, and other conditions to which the two parties agree.

Insurance policy

Insurance is frequently described as a method of "sharing the risk" because the:

Insured shares the risk of loss with all the other policy holders.

Which fact supports the idea that renting is a good option for living in a place for a short period of time?

Landlords take care of most maintenance.

This is a contractual agreement that allows monthly payments for the use of the vehicle without ownership.

Lease

Type of secured loan used for purchasing property.

Mortgage

Which example shows an advantage of owning a car over leasing one?

No restrictions on the number of miles to drive and the ability to customize, or make changes to the car.

Which statement does NOT accurately describe a characteristic of cash value for whole life insurance?

Policy that accumulates cash value is less expensive than a policy that does not accumulate cash value.

Gwen receives a bill from her auto insurance company, and she sends money to the company to make sure her policy is not canceled. The cost of her policy is called the:

Premium

When a self-employed person decides to purchase disability insurance it is generally to

Protect against the financial effects of not being able to work.

Risk _____ is taking measures to lessen the frequency or severity of losses.

Reduction

If a patient has a copay of 20 percent and medical services cost $100, what is the patient's cost?

$20

Homeownership could offer

All of these

When you apply for a mortgage, which of the following will be checked?

All of these

Sally's health insurance policy requires her to pay the first $500 of medical costs each year before the company will pay any of her medical bills. This policy provision is the:

Annual Deductible

Which of the following insurance covers motorcycles

Automobile

The person who receives payment of a life insurance policy is the

Beneficiary

Which housing option gives you more freedom and more responsibility?

Buying a House

Process of documenting a loss against an insurance policy.

Claim

You have a $2,000 loss. Your insurance company pays you $1,500 on the claim for the loss. The $500 the insurance did not pay is a result of your policy having a:

Deductible

A _____ is an individual who relies on someone else for financial support

Dependent

What type of insurance pays a portion of income lost to a worker who is unable to work for a prolonged period due to illness or injury?

Disability Insurance

Which of the following is NOT an advantage of owning a car?

Drive unlimited number of miles

Who pays for worker's compensation insurance?

Employers

This mortgage type has an interest rate that does not change during the term of the loan.

Fixed Rate

Richard's auto insurance policy expired on 5/15/2002. Richard was upset with his insurance agent and decided to change insurance companies. At 10:00 a.m. on 5/16/2002, as he drove to a different agent to buy a new policy, he had an accident. Who is liable for damages to his car and his personal injuries?

Richard

Neil will be traveling by air in Southeast Asia for a six-week vacation. Which step WILL NOT provide protection from financial loss during his trip?

Take his passport

What is the best reason for why someone would want to lease a house instead of buy one?

They are planning on living there for a short period of time.

What is the main purpose of insurance?

To provide protection against specific types of financial losses.

Ben's truck is crushed by a hit-and-run driver. Scott is hit by an uninsured driver. How will they receive payments?

Uninsured or no-fault motorist coverage

What are the four common methods of risk management?

avoid, reduce, transfer, assume

When is the best time to get credit pre-approval to finance a car?

before visiting a car dealer

A(n) _____ is a specified amount subtracted from covered losses.

deductible

The single greatest cost of owning a NEW car is

depreciation

Difference between the market value of property and the amount owed.

equity

Which of the following represents a managed care plan?

health maintenance organization (HMO)

Written agreement specifying the conditions, terms, and rent for the use of an asset.

lease

Person renting a property

lessee

Generally, the higher the deductible on an insurance policy, the

lower the premium

Fire, storm, explosion, and accident are examples of

perils

Homeowners insurance provides what two basic types of coverage?

property protection and liability protection

Leasing a car may be a better option than buying a car if...

you don't plan on having it for long and don't want to worry about regular maintenance.

Why is term life insurance usually the least expensive type of life insurance?

The policy only pays a death benefit.

Which of the following is true regarding insurance?

The type and amount of insurance needed varies depending on the person buying it.

At what age do workers become eligible for full retirement benefits from Social Security?

67

For the past five years, a person has had a $20,000 whole life insurance policy that has a cash value clause. The person decides to surrender the policy. At the time of surrender, the person will receive

A calculated amount of money which includes the premiums paid as well as the interest on that money.

Davis purchased a brand-new television six years ago for $1,200. This year, a fire occurred in his house and damaged his television. If Davis' property is insured for replacement value, what will he likely receive?

A check for the amount of a television of comparable quality.

Which of the following is NOT be a warning sign of a scam when buying a car or other big purchases?

A price that fits comfortably in your budget


संबंधित स्टडी सेट्स

TCI 28 MC Questions - India's Comparative Advantage

View Set

Chapter 4: The General Journal and the General Ledger, Quiz

View Set

Business Chapter 9: Motivating Employees

View Set

SJSU BUSS-141 Quiz 4 - Proc and Supply Mgmt

View Set

TX - Life Section 3 - Application, Underwriting, and Policy Delivery

View Set