7. Economics starts w/ insuring & protecting

Under this plan, an individual almost always has to get a referral from their primary physician before seeing a specialist? A. HMO B. Medicare C. HSA D. PPO

A. HMO

What risks might David incur by not taking out full-coverage for his 1987 Chevrolet Caprice with 250,000 miles? A. If the car is totaled, he will have to purchase a new vehicle B. Should he be victimized in a car accident, he can now sue for damages C. None of these D. By taking the insurance he is spending more monthly than the vehicle's MSRP

A. If the car is totaled, he will have to purchase a new vehicle

Insurance that pays the deceased person's beneficiaries is often referred to as which of the following? A. Life insurance B. Liability insurance C. Health insurance D. Automobile Insurance

A. Life insurance

A person visiting Casino Pier in Seaside Heights, New Jersey has a higher likelihood of winning the lottery than being attacked by a shark. What is another term we use to describe this likelihood? A. Odds B. Securities C. Insurance D. Liability

A. Odds

What term would best describe the following? Years ago, farmers would gather together to support one another. If one man's barn burned down, his neighbors would come together for a barn raising. One would bring lumber, another tools, and a third extra labor. By doing this, all of the neighbors would be splitting the cost of the burnt down barn. A. Sharing risk B. Risk assessment C. Avoidances of risk D. Risk strategies

A. Sharing risk

Which of the following is not considered to be a preventative measure for disease? A. Smoking cigarettes on a daily basis B. Sticking to a low carbohydrate and lean protein diet C. Avoiding chemicals that cause disease D. Only visiting countries with low risk of accident or disease

A. Smoking cigarettes on a daily basis

Which of the following are reasons the government should regulate insurance companies? A. all of these B. make sure rates are fairly priced C. lack of consumer knowledge on risk D. allows for insurance to be available

A. all of these

Which of the following carries a high risk factor for a 14-year-old? A. all of these B. skipping school frequently C. using tobacco D. not using proper hygiene

A. all of these

Which of the following is essentially the replacement for the item subtracted by depreciation? A. Free Cash Actuality B. Actual Cash Value C. Cash Adjusted Value D. All of these

B. Actual Cash Value

Lily is a 20-year-old that has had a congenital heart disease since birth, which of the following cannot happen to her from an insurance standpoint as of 2016? A. Although a congenital heart disease is a pre-existing condition, health insurance companies can terminate her policy and charge an exit fee. B. Be removed from health insurance for a preexisting condition C. Since a congenital heart disease is not a pre-existing condition, health insurance companies can terminate her policy with a 60 day notice. D. All of these are correct

B. Be removed from health insurance for a preexisting condition

Which of the following is likely the most expensive purchase one will make in a life-time? A. Recreational Vehicle B. Home C. Car D. Yacht

B. Home

A written contract between the insured with the insurer and their domicile along with belongings is known as which type of insurance? A. Automobile B. Homeowners C. Liability D. Malpractice

B. Homeowners

Which of the following has a strong possibility of not being protected in a homeowner insurance policy? A. Children B. Jack Russell Terrier C. Ex-spouse that is visiting the home by invitation D. Spouse

B. Jack Russell Terrier

Which of the following terms describes someone that rents out a property to other persons? A. Lender B. Landlord C. Money maker D. Tenant

B. Landlord

What is referred to as the legal responsibilities for another individual and/or their property? A. Negligence B. Liability C. Umbrella policy D. Criminality

B. Liability

Phil is one of 2/3rds of tenants in this country that do not have renter's insurance, he is living in a rental unit of a condominium complex that is demolished due to a fire, as a result, his belongings (value of about $75,000) is entirely destroyed. The condominium complex is covered by a Homeowners Policy, how much of Actual Cash Value (ACV) should Phil expect to receive? A. Half of the ACV B. Most likely nothing C. The price for his belongings plus additional money for inflation D. $20,000

B. Most likely nothing

Earthquake insurance being included into an umbrella policy for a homeowner in Salinas, California is known as which of the following? A. Ring of Fire Package B. Riders or specialized coverages C. Vicarious liability D. Mudslides

B. Riders or specialized coverages

Which of the following is not one of the "Three Basic Rules of Risk? A. Consider the odds of something bad happening B. Risking a lot for a fair cost C. Do not risk more than you can afford D. Do not risk a lot for little cost

B. Risking a lot for a fair cost

Which of the following is an example of an unavoidable risk? A. Melanie the bartender continues to serve patrons beyond the point of intoxication on B. While completing football practice, Carson refuses to sign autographs from fans in hopes of avoiding stress to his throwing hand and experiences a dramatic dip in his jersey sales throughout the season C. John is required to visit Mumbai, India for a business trip, he eats dinner with potential business partners and is saddled with a stomach virus on the flight home to Philadelphia. D. All risk within life is 100% avoidable

C. John is required to visit Mumbai, India for a business trip, he eats dinner with potential business partners and is saddled with a stomach virus on the flight home to Philadelphia.

Which of the following could help reduce one's premiums levied by an insurance company? A. Drastic weight gain by an obese person (health insurance) B. Adding a teenaged son onto an automobile insurance package C. Purchase of a home security system (homeowners insurance) D. Ownership of a 2-year-old Rottweiler and living near an elementary school (homeowners insurance)

C. Purchase of a home security system (homeowners insurance)

From a homeowner's insurance policy, which of the following would be an example of vicarious liability? A. Jenna is at Aubrey's house and is preparing chili over a hot stove for an 11th grade consumer science course, and is slightly burned from touching the pot without gloves. B. Michael is visiting Claire's new house, during the meeting Michael faces 2nd degree burns from the dishwasher after removing the plates too early. C. Steve is driving golf balls on his front lawn, one ball badly damages the neighbor's aluminum siding D. Bill, 10, and Ted, 11 are neighbors and are fishing off Ted's dock in Manahawkin, New Jersey. Clarence, Ted's father, who has been actively teaching the boys until Bill falls in the water trying to reel in an aggressive bluefish.

C. Steve is driving golf balls on his front lawn, one ball badly damages the neighbor's aluminum siding

Which of the following terms describes someone that rents a property? A. Lender B. Landlord C. Tenant D. Money maker

C. Tenant

How do ethics relate to managing risk? A. Risk management helps cover insurance costs for ethical debacles. B. The most profitable businesses implement exemplary ethical strategies. C. The best way to manage risk is by being open and honest. D. Risk management is entirely about ethical treatment of employees.

C. The best way to manage risk is by being open and honest.

Renters insurance is very similar to homeowners, but what does it NOT cover that homeowners will? A. None of these B. The renter's television C. The dwelling D. The vehicle parked in the assigned space

C. The dwelling

Under which policy is there additional liability insurance and exists to protect above the limits of homeowners and auto insurance? A. Vicarious policy B. Homeowners Policy C. Umbrella policy D. Progressive policy

C. Umbrella policy

A risk that does happen but is often very difficult to predict is known as: A. Predictable B. Known C. Unpredictable D. None of these

C. Unpredictable

Which of the following would be most ideal for a homeowner to reduce their risk of fire? A. checking smoke detectors monthly B. turning off appliance when not in use C. all of these D. not using candles

C. all of these

Which of the following are examples of personal risk? A. sufficient income during retirement B. all options are correct C. involuntary unemployment D. great health

C. involuntary unemployment

Insurance looks at risk as the: A. opportunity to eliminate risk B. potential for corporate gain C. potential for financial loss D. opportunity to make money

C. potential for financial loss

According to the video, the way to conquer risk is to A. accept it B. reuse it C. reduce it D. share it

C. reduce it

Under Section 2: Coverage, typically insurance companies will cover at least THIS amount? A. $25,000 B. $10,000 C. $500,000 D. $100,000

D. $100,000

Under homeowners insurance, section 1, what is the standard for loss of use for lodging? A. 100 days B. 45 days C. 365 days D. 30 days

D. 30 days

Since there are mudslides within Pismo Beach along the Pacific Coast Highway during your drive from Los Angeles to San Francisco, you head north on I-5 to reach San Francisco. Although the odds of a mudslide being substantially reduce, higher traffic on I-5 increases the risk of a motor vehicle accident. Since risk is always present, which of the following condition is taking place? A. Denying the risk B. Sharing the risk C. Avoiding risk altogether D. Accepting the risk

D. Accepting the risk

Which items below might result in liability claims, and before be limited or excluded on a Homeowners Policy? A. Jet Ski B. Boat C. ATV D. All of these

D. All of these

Which of the following are ways a company can reduce the cost of providing health care services? A. Offering employees to join a nearby and high quality gym for a reduced rate B. Allowing employees to take additional vacation time C. Hiring a chef for the company's restaurant that specializes in healthy cuisines D. All of these

D. All of these

Which of the following can help contribute to varying costs in homeowners insurance? A. Geography B. Value of the company C. Riders D. All of these

D. All of these

Which the following are considered pre-existing conditions? A. Cancer B. Heart Disease C. Asthma D. All of these

D. All of these

Which of the following are encouraged to take a life insurance plan? A. Limited-Income (usually Single Income) Couples B. Business Owners C. Those with children D. All of these are included.

D. All of these are included.

Which of the following is the best example of someone strongly considering the odds of something bad happening? A. All choices are correct. B. Angelo works out daily to encourage heart problems later in life. C. Jack, a high school teacher, decides to go surfing in a highly shark infested beach in Cape Town, South Africa one winter without considering the possibility of a serious injury. D. Anthony refuses to allow his 19-year-old son and his friends consume alcohol on the premises of the property due to the possibility of criminal and fraudulent risk.

D. Anthony refuses to allow his 19-year-old son and his friends consume alcohol on the premises of the property due to the possibility of criminal and fraudulent risk.

With the Scudder Falls Bridge being under construction and experiencing more traffic, Pennsylvania residents take the Trenton Makes Bridge to reach New Jersey. What is this an example of? A. Accepting the risk B. Reducing risk altogether C. Sharing the risk D. Avoiding risk altogether

D. Avoiding risk altogether

For an insurance company, which of the following examples has the highest probability of risk? A. Lethal attack by a Great White Shark in Asbury Park, New Jersey B. Insuring a house for tornado coverage in Philadelphia, Pennsylvania C. A 30-year-old with great health applying for health insurance D. Building a 3,000 square foot ranch-style home built near the banks of the flood-prone Tennessee River

D. Building a 3,000 square foot ranch-style home built near the banks of the flood-prone Tennessee River

How do most Americans under the age of 65 acquire health insurance? A. Purchasing from the market B. Medicaid C. Medicare D. By their employer

D. By their employer

A type of insurance which pays for part of the claim after the patient pays the deductible is known as which of the following? A. PPO B. Deductibility C. Co-pay D. Co-insurance

D. Co-insurance

What is the amount of the money that the insured person must pay before the insurance coverage kicks in called? A. HMO B. Co-pay C. Co-insurance D. Deductible

D. Deductible

Under Section 1 of Homeowners Insurance, which of the following could be encompassed as an other structure? A. Ceiling fan B. Powder room next to the kitchen C. Attached garage D. Detached garage

D. Detached garage

Of the below facilities, where is a patient likely going to have the most personalized health service? A. Hospital in another country B. Specialist C. Urgent clinic D. Family physician

D. Family physician

Based on what factor could be that tornado insurance is cheaper in New Jersey than Oklahoma? A. Inflation B. More finished basements in homes within New Jersey than Oklahoma C. Less in internal damages D. Geography

D. Geography

An HSA account is most comparable to which retirement investment plan? A. 401(k) B. Pension C. 403(b) D. IRA

D. IRA

Insurance companies help reduce the financial costs of a catastrophe by examining all of the following EXCEPT A. Property Risk B. Liability Risk C. Personal Risk D. Losing Risk

D. Losing Risk

What is referred to as discussing the way potential risks are analyzed and thereby decisions are made to address the risk? A. Mental risk B. Liability risk C. Personal risk D. Management of risk

D. Management of risk

Under PPO, which of the following in-network specialists would a referral be required? A. Cardiologist B. Dermatologist C. Neurologist D. None of these

D. None of these

You live in an area that has a history of flooding every 1000 years. What are the odds that flooding is going to happen while you're living there? A. Pretty Moderate B. Moderately High C. Extremely High D. Pretty low

D. Pretty low

Under which kind of insurance are tenants protected if a property catches fire and belongings experience damage? A. Homeowners insurance B. Other insurance C. Automobile insurance D. Renters insurance

D. Renters insurance

Under the Affordable Care Act, all U.S. citizens are required to have healthcare coverage. If Jane, is age 78, does she need to purchase insurance under the ACA? A. She is a retired public school teacher from New Jersey and enjoys healthcare benefits for life, therefore will need to be insured under the ACA B. She will have to purchase insurance under the ACA C. All options are correct D. She is eligible for Medicare, so will not have to purchase insurance under the ACA

D. She is eligible for Medicare, so will not have to purchase insurance under the ACA

Which of the following refers to a situation where someone is held responsible for another person's actions? A. Umbrella liability B. Liability C. Negligence D. Vicarious liability

D. Vicarious liability

Which of the following contributes to rising healthcare costs? A. rise of obesity amongst Americans B. development of new medications C. overreach by the Federal government in health care D. all of these

D. all of these

Which of the following are disadvantages to insurance? A. insurance premiums are tax-deductible B. one may lose a great deal more by not being insured legally and financially C. reduced uncertainty D. payment of premiums are usually costly

D. payment of premiums are usually costly

WRONG Bill was 150 pounds overweight, but his insurance premiums significantly dropped after he lost the weight by going to a local health club and sending his insurance company record of his monthly visits with a personal trainer. What kind of measure did Bill take that led for his insurance premiums to drop? A. Preventative measure B. Cosmetic measure C. Clear measure D. None of these

NOT B. Cosmetic measure

WRONG Funds from an HSA account that are re-diverted into mutual fund investments are insured by which organization? A. Investments are not insured, only deposits B. FDIC C. New York Life D. Affordable Care Act

NOT B. FDIC

WRONG What would a Medicaid program in let's say New Jersey and North Carolina look like? A. Slight differences B. Very similar, because the Federal government controls 100% of Medicaid dollars C. None of these D. Exactly the same

NOT B. Very similar, because the Federal government controls 100% of Medicaid dollars NOT D. Exactly the same

WRONG Hurricanes often hit Punta Cana in the Dominican Republic during the months of September and October; as a result, several beachfront hotels have closed for the duration. What is the best categorization for the type of risk these businesses are looking to reduce? A. Known B. Unpredictable C. Predictable D. None of these

NOT C. Predictable

WRONG Which of the following items might require additional coverages on a Homeowners Policy? A. Deck B. Garage C. Expensive jewelry D. Pool

NOT D. Pool

Which of the following individuals would not be advised to purchase life insurance? A. A 50-year-old high-income individual looking to reduce the burdens of estate taxes B. A 45-year-old women with 1 child and owns a medium-sized company C. A 95-year-old married man living in Florida D. A 38-year-old divorced man with 2 children

C. A 95-year-old married man living in Florida

Which of the following contributes to reducing the cost of health care in the United States? A. Rapid increasement of hospital visits by Medicaid recipients B. Increased tuition for medical school C. Access to preventative vaccines for deadly illnesses D. Affordable Care Act's implementation

C. Access to preventative vaccines for deadly illnesses

Which of following risks could face a self-employed general contractor face by skiing in Aspen? A. General personal risks B. Financial risk if injured and cannot work C. All of these D. Liability risk if drinking alcoholic beverages while skiing

C. All of these

Which of the following are the best ways to reduce risk? A. Deciding the consequences of the risk B. Determining likelihood of risk taking place C. All of these D. Learning from past events

C. All of these

Which of the following would the Centers for Disease Control and Prevention handle? A. Promoting an influenza vaccine for senior citizens B. Come up with a quarantine program for a recent spread of Ebola in Atlanta, Georgia C. All of these D. Encouraging the State of New York to require incoming college students to get a meningitis vaccine

C. All of these

Within the United States, which federal agency works mainly to handle public health? A. Department of Justice B. Department of Homeland Security C. Department of Health & Human Services D. Office of Management & Budget

C. Department of Health & Human Services

Most group insurance plans are sponsored by employers, who covers of the cost? A. The Department of Health and Human Services B. Employee C. Employer D. Half employer, halfemployee

C. Employer

How do we protect ourselves from others? Falls most into: A. Personal risk B. Property risk C. Liability insurance D. Management of risk

C. Liability insurance

Which one of the following items is not a building block of insurance? A. Liability risk B. Personal risk C. Mental risk D. Management of risk

C. Mental risk

What kind of financial loss is caused by physical and/or emotional risk? A. Property risk B. Liability risk C. Personal risk D. Emotional risk

C. Personal risk

Which area of the country do you think illustrates a shortage of primary-care providers? A. Urban B. Suburban C. Rural D. City

C. Rural

WRONG How do ethics relate to managing risk? A. Risk management helps cover insurance costs for ethical debacles. B. The most profitable businesses implement exemplary ethical strategies. C. The best way to manage risk is by being open and honest. D. Risk management is entirely about ethical treatment of employees.

NOT A. Risk management helps cover insurance costs for ethical debacles.

WRONG A labor strike of a major health care provider in New Jersey in as an example of what kind of risk? A. Emotional risk B. Property risk C. Economic risk D. Mental risk

NOT B. Property risk

Which of the following occurrences has the lowest probability of risk for a doctor employed by a local hospital that walks to work? A. law suite for medical malpractice B. having his car stolen C. job loss D. physical injury from a patient that is difficult to subdue

B. having his car stolen