Chapter 8
A risk that could result in either financial gain or financial loss is a
Speculative risk
A type of policy that provides protection only for a specific period of time.
Term-Life insurance
An unmarried person with no children generally needs less coverage than a parent. (T/F)
True
Carrying adequate auto insurance is a major responsibility of car owners. (T/F)
True
HMOs force you to pick a doctor from a list. (T/F)
True
Insurance companies can use your credit score to quote an insurance rate to you. (T/F)
True
Major medical insurance usually covers basic coverage like prescriptions, hospital stays, and inpatient tests. (T/F)
True
A special insurance policy to cover things like jewelry, boats, and artwork.
Umbrella Policy
If you are hurt on the job, you are covered by law under
Workers' compensation insurance
Renters insurance will cover the loss of
Electronics such as laptops & TV
You have to stay with a specific list of doctors if you have insurance with a Preferred Provider Organization (PPO), with no option to use other doctors (T/F)
False
A healthcare plan that pays for covered services after treatment is provided
Fee-for-Service
An insurance plan with a tax-advantaged savings account is a
HDHP
The main purpose of insurance is to provide financial protection in the event of
Illness or injury, accidents and property losses, and death
An insurance coverage that pays others for losses caused by the insured in an automobile accident.
Auto liability
A person named by a policyholder to receive the death benefit of a policy
Beneficiary
The law that provides for a person to continue their health insurance if unemployed is
COBRA
A flat fee the patient must pay for medical services.
Copayment
An amount you must pay toward your medical expenses before insurance pays is the
Deductible
An individual who relies on someone else for financial support.
Dependent
A type of insurance that protects against financial risks is _____ insurance.
Disability insurance, auto insurance, and health insurance
An insurance type designed to simplify and speed up payments to accident victims
No-Fault Auto Insurance
An example of a managed care plan is
POS, HMO, and PPO
A person who has purchased insurance.
Policyholder
An amount of money regularly paid to an insurance company for a policy.
Premium
A category of pure risk is a
personal risk, property risk, and liability risk