Quiz #3 Chapter 11, 12 &13

Which of the following is not true as it relates to the cost of healthcare?

Better claim handling and processing has helped reduce the cost of healthcare

Insurance agents who work for one particular company are called

Captive agents

The bodily injury liability coverage of your automobile policy will not pay for

Injuries to others in your car due to an accident that you caused

The primary function of insurance is to

Insure you against all types of risk

The 100 in 100/300/50 refers to the

Limit for bodily injury claims that can be paid to one person

In general, insurance companies generate their revenues from

Receiving payments for policies and investing the proceeds from premiums until the funds are needed to cover losses

The cost of healthcare has risen dramatically in recent years due to all of the following, except

Reduced litigation costs

Lessening your exposure to an illness by getting periodic health checkups is an example of

Reducing risks

Insurance is not a good option for managing risk when

The probability of loss is very small and the expected loss is very small

Which risk management alternative is feasible when the likelihood of an event that could cause a financial loss is very low and the potential financial loss due to the event is small?

Accept risk

The insurance agent's role includes all of the following, except for

Assessing the client's risk of loss

If you have a car accident in which a person in the other car is injured, the type of insurance that would protect you from financial loss is

Auto insurance

Having liability coverage as part of auto and homeowner's policies helps protect your ________ in the event of an accident.

Credit rating

People are more willing to purchase or increase their insurance coverage when

Economic conditions are favorable and incomes are higher

Which of the following is not a popular form of insurance for individuals?

General liability insurance

Which of the following statements regarding health insurance is not true

Health insurance is offered by private insurance companies and the government

________ is not a suggested risk management method.

Ignoring risks

Which of the following is not a service company that would rate the financial condition of insurance companies?

Kelly Blue Book

Having a large deductible on your auto or homeowner's insurance is a form of

Managing risk, self-insuring risk, and financial decision-making

Underwriters for an insurance company do not

Market insurance policies

The 25 in 50/100/25 refers to the

Property damage liability coverage

Independent insurance agents

Represent many different insurance companies

Which of the following is not true about state financial responsibility laws?

They are the same for all states

The comprehensive and collision premium of a Rolls-Royce in relationship to a Chevy

Will be higher than the Chevy