Insurance

In what way does a deductible help an insurance company? It adds to the company's pool of funds. It increases consumers' insurance premiums. It lowers the payout the company has to make. It reduces consumers' co-payments.

It lowers the payout the company has to make.

Under which circumstance would someone need disability insurance? A person's suitcase was stolen and valuables were lost. A person has contracted the flu and needs a prescription. A person was in a car accident and cannot work for several months. A person's house was seriously damaged during a natural disaster.

A person was in a car accident and cannot work for several months.

When an insurance company needs to provide a payout, the money is removed from: the consumer's income. a bank loan. a pool of funds. the consumer's account.

A pool of funds

Roland has purchased a new tablet. How he can avoid risk? Check all that apply. by using a screen protector by letting his toddler play with it by using an antivirus app by using a protective case by letting his friends borrow it

By using a screen protector By using an antivirus app By using a protective case

Maria's family has a health insurance plan. Her mother has $350 deducted from her paychecks each month.When Maria visited the doctor, her mother paid a $25 fee. The insurance company covered the rest of the cost of the visit.When Maria's mother went to the hospital, her family was responsible for paying the first $1,000 of the bill. After this payment, the insurance company covered the rest of the costs. Read the passage about a family health insurance plan. What is the $25 fee Maria's mother paid when Maria visited the doctor? payout deductible co-payment premium

Co-payment

Most people prefer to pay health insurance premiums rather than pay out-of-pocket for medical expenses because: people are cautious and believe they are less likely to get sick if they have health-insurance coverage. doctors and hospitals always provide better care to people who have health insurance. people still feel more secure with a health insurance policy, even though out-of-pocket costs are often lower. medical costs can be extremely high, and insurance is more affordable than paying out-of-pocket for a hospital stay.

Medical costs can be extremely high, and insurance is more affordable than paying out-of-pocket for a hospital stay.

Which is always a cost when buying insurance? premium deductible co-payment payout

Premium

The basic purpose of insurance is to provide: loans. prevention. protection. liability

Protection.

What is the definition of premium? the value of something lost or damaged the highest payout by an insurer the amount paid for an insurance policy the best insurance available

The amount paid for an insurance policy

In what circumstance would a property insurance claim be rejected? The insurance company finds that a homeowner intentionally caused damage. The property damage is caused by a natural disaster, such as a flood. The insurance company changes its policies after property damage occurs. The property damage is extensive and requires lengthy and expensive repairs.

The insurance company finds that a homeowner intentionally caused damage.

What must happen in order for an insurance company to make a payout? Check all that apply. The insurance company must verify the claim. The insured party must file a claim. The insured party must purchase property. The insurance policy must be in place. The insured party must experience a covered loss.

The insurance company must verify the claim. The insured party must file a claim. The insurance policy must be in place. The insured party must experience a covered loss.

Which questions about risk should someone ask before making a big purchase? Check all that apply. What problems are most likely to happen? What can be done to avoid liability? What could go wrong? What problems could be most damaging? What option has no risk?

What problems are most likely to happen? What could go wrong? What problems could be most damaging?

Insurance is a financial service that allows a: consumer to transfer all risk to a company. company to control finances for a consumer. consumer to share liability with a company. company to maximize risk for a consumer.

Consumer to share liability with a company.

Which type of insurance policy would someone get to protect others only? health insurance life insurance property insurance disability insurance

Life insurance

Why does insurance often provide "peace of mind"? People know their insurance coverage will help prevent accidents and damage. People trust that they will make a profit if they pay insurance premiums. People are not concerned about their health if they can pay for doctor's visits. People are less worried when they know they have protection from risk.

People are less worried when they know they have protection from risk.

An entrepreneur keeps backup funds in a savings account so that if their business experiences a loss, they will be able to recuperate. What type of risk management is this an example of? reducing risk. sharing risk. avoiding risk. maximizing risk.

Reducing risk