chapter 6
Driving without a spare tire will usually lead to serious personal risk.
False
If you have health insurance, you do not have to worry about the costs of health care.
False
You should assume the risk for large expenses and get insurance to cover small and routine costs.
False
ture or false:Homeowner's insurance protects a homeowner from fire damage but does not include liability coverage.
False
Which of the following is considered unmanaged care?
Fee-for-service
You can reduce yYou can reduce your insurance premium cost by paying annually instead of monthly. our insurance premium cost by paying annually instead of monthly.
True
Insurance that protects a car owner from losses as a result of accidents and other events.
automobile insurance
Which of the following type of health insurance plan includes coverage for medical, hospital, and surgery expenses?
basic health care
The person designated to receive money from a life insurance policy.
beneficiary
Insurance that provides income to replace a portion of normal earnings when the insured is unable to work due to non work-related injury or illness
disability insurance
All risks have serious potential losses and should be managed with risk avoidance or risk transfer.
false
Term insurance is an important part of your permanent life insurance plan.
false
A plan for sharing the risk of medical costs
health insurance
A list of items of value in your home.
home inventory
Insurance that protects against risk of loss to a home and its contents.
homeowner's insurance
Insurance protection against injuries suffered by others on your property or as a result of your actions.
liability coverage
Insurance that pays money to the beneficiary upon the death of the insured person
life insurance
A physical injury, damage to property, or disappearance of property.
loss
Insurance that provides a death benefit and builds cash value.
permanent life insurance
The price paid for insurance coverage
premium
The likelihood of a risk resulting in a loss.
probability
A tenant's policy that protects against the loss of personal property in a rented residence.
renter's insurance
For insurance purposes, what you would pay today to replace an item is the
replacement cost
The chance of injury, damage, or economic loss
risk
The process of identifying risks and deciding how serious they are
risk assessment
Self-insuring is a form of
risk assumption
Not participating in a dangerous activity is
risk avoidance
Finding ways to lower your chance of loss is
risk reduction
Buying insurance to shift the risk of financial loss.
risk transfer
Setting aside money to be used in the event of injury or loss.
self-insure
Temporary coverage for non work-related illness or injury is covered by
short-term disability insurance
A clause that provides 100 percent coverage of medical expenses after a certain amount has been paid.
stop-loss provision
Which of the following is known as pure insurance?
term insurance
Temporary insurance that pays only a death benefit.
term life insurance
A major advantage to HMOs is their focus on preventive care and wellness.
true
Having a home security alarm system can reduce your insurance premium.
ture
Liability coverage above that of homeowner's and car insurance.
umbrella policy
