Personal finance

Factors in setting a driver class?

Age, sex, driving record, marital status

Price paid for insuring home and car should be thought of as

An investment in protect your resources

People who cannot get vehicle insurance

Assigned risk pool

Main bodily injury coverages

Bodily injury liability, medical payments, uninsured motorist protection

Negligence is failure to take ordinary or reasonable—-?

Care

Ways of reducing premiums on automobile insurance

Complete driver training, compare shopping for automobile insurance, instal security devices, maintain a safe driving record

Expensive replacement parts and ——- repairs due to body style contribute to higher automobile rates

Complicated

Comprehensive physical insurance

Covers physical damage to car from fire, theft, falling objects, hitting an animal

Risks related to home and auto insurance

Damage to property and responsibility for injuries of others, responsible for damage to the property of others

Negligent actions

Failing to remove large items from a stairway, improperly supervising children in a swimming pool

Purchasing insurance is the only way to manage risk

False

Collision insurance pays for damage to an automobile regardless of

Fault

Anything that increases the likelihood of loss through some peril

Hazard

Medical payment coverage is insurance that applies to the medical expenses of anyone who is —- in your vehicle

Injured

Examples of risk reduction actions

Installing smoke alarms, wearing seat belts in a car

Money automobile insurance pay in claims goes to

Legal expenses, medical expenses, other costs that arise when someone is injured

Legal responsibility for the financial cost of another person's losses or injuries

Liability

Risk management is a

Long term process

Potential property losses can be caused by

Losses to perils and losses by criminal behavior

Goals of insurance

Minimize personal, property, liability risks

A higher deductible results in

More risk for the insured

Personal insurance plans should change with

Needs and goals

Which cannot be classified as criminal behavior?

Negligence

Drivers involved in accidents collect medical expenses, lost wages, and related injury cost from insurance companies

No fault system

Property damage liability protects you against financial loss when you damage

Others property

Shifting of risk is done through purchasing of an insurance—-

Policy

Automobile insurance covers

Property damage and personal damage

wage loss insurance

Reimburse you for any salary or income lost due to injury in an automobile accident

Amount you can recover with collision insurance is limited to the

Retail value of your vehicle

Not buying flood insurance on a house is

Risk assumption

General risk management techniques

Risk assumption, risk reduction, risk avoidance

Choosing to never drive to work so your not in an accident

Risk avoidance

Most common method of dealing with risk is

Risk shifting

Fewer accidents and vandalism's occur in —-

Rural

Setting up a special fund to cover the cost of a loss

Self insuring

Comparison shopping can help lower premiums on home owners insurance policy

True

Insurance companies can use credit scores in determining premiums

True

Risk management plans are flexible enough to handle life's changing situations

True

Main factors that influence premiums for automobile insurance?

Type, rating territory, and driver classification

Coverage that insures financial protection when another drive has insurance but not enough to pay for injuries they caused

Underinsured motorist protection

Property covered under property damage liability include

Vehicles, buildings, street signs, and telephone poles