BUS Personal Finance 147

Which of these strategies help reduce the financial impact of disability?

- Drawing upon savings & investments during our disability - Collecting social security (public) disability income - Collecting disability income from a disability insurance policy

Insurance provides protection against many types of risks including all of the ones, EXCEPT:

- gambling - insuring values of stocks & bonds

The financial impact of death includes:

- loss of income - loss of services - final expenses

Which of the following are general risk management techniques?

- risk reduction - risk avoidance - risk assumption

The main types of risks related to a home and automobile are

- your responsibility for damage to the property of others - your responsibility for injury to others - damage or loss to your property

Defective house wiring is an example of:

A hazard

True or False: According to the text, your owner's insurance covers damage to your home and any other structures on your property.

True

True or False: Comparison shopping can usually help to lower the premiums on your home owner's insurance policy.

True

True or False: Home owner's insurance covers damages to your home due to many perils, such as fire and windstorm, and it also covers personal injuries received by persons on your property.

True

True or False: Life insurance is a financial strategy to deal with the financial impact due to the death of a spouse.

True

True or False: Life insurance replaces income lost when the policy holder dies.

True

True or False: Physical damage to a property is caused by perils such as fire, wind, water, and smoke.

True

True or False: The best risk management plans are flexible enough to handle life's changing situations.

True

The price paid for insuring your home and your car should be thought as

an investment for protecting our resources

Increasing your deductible lowers your premium.

deductible

Insurance is a protection against possible financial loss, and provides protection against many risks

financial, risks

The legal responsibility for the financial cost of another person's losses or injuries is known as

liability

All of the following can be classified as criminal behavior, which can cause property losses, EXCEPT:

negligence

Not clearing ice from the front steps of your house is an example of negligence which is failure to take ordinary or reasonable care.

negligence

Automobile insurance covers property damage and personal damage (bodily injury) caused by the policyholder's car.

property

One of the key goals when planning insurance is to

reduce possible loss of income

The main factors that influence premiums for automobile insurance are:

vehicle type, rating territory, and driver classification