FINANCE CHAPTER 6 TRUE/FALSE & MULTIPLE CHOICE

Basic health care

Health insurance plan that includes coverage for medical, hospital, and surgery expenses...

Risk avoidance

Not participating in a dangerous activity is...

Liability coverage

Pays for if someone were to get injured in your home/property...

Term imsurance

Pure insurance?...

Risk assumption

Self-insuring is a form of...

Short-term disability

Temporary coverage for non-work related illness or injury..

Fee-for-service

Unmanaged care...

Replacement cost

What you pay to replace an item...

True

a major advantage to HMO's is their focus on preventive care and wellness

False

all risks have have serious potential losses and should be managed w/ risk avoidance or risk transfer

False

driving w/o a spare tire will usually lead to serious personal risk

Risk reduction

finding ways to lower your chance of loss is...

True

having a home security system can reduce your insurance premium

False

high-risk pools offer maximum insurance coverage at high cost to poor drivers

False

homeowners insurance protects a homeowner from fire damage but does not include liability coverage

False

if you have health insurance, you don't have to worry about the costs of health care

False

term insurance is an important part of your permanent life insurance plan

True

you can reduce your insurance premium cost by paying annually instead of monthly

False

you should assume the risk for large expenses & get insurance to cover small and routine costs