Insurance Is A Financial Service That Allows A

Question: 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.

Answer: A pool of funds

Question:

Answer: Co-payment

Question:

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

Question: Which type of insurance policy would someone get to protect others only?

health insurance

life insurance

property insurance

disability insurance

Answer: Life insurance

Question: Which is always a cost when buying insurance?

premium

deductible

co-payment

payout

Answer: Premium

Question: 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.

Answer: Reducing risk

Question: 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.

Answer: Consumer to share liability with a company.

Question: 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?

Answer: What problems are most likely to happen?

What could go wrong?

What problems could be most damaging?

Question: 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

Answer: By using a screen protector

By using an antivirus app

By using a protective case

Question:

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