Chapter 8

Question 1

What does avoiding risk entail?

Answer 1

As an example, you can avoid financial loss from a property by simply not owning any property

Question 2

What can you do to reduce risk?

Answer 2

By purchasing a smaller house, you can reduce exposure to financial loss.

Question 3

Accepting risk example

Answer 3

You can accept risk by not seeking limitations on financial loss. An example would be if have lived in a small town with less cars, the risk of getting into an accident is lower, but you accept that.

Question 4

Insurance premium

Answer 4

The cost of obtaining insurance

Question 5

Peril

Answer 5

A hazard or risk you face

Question 6

Under writers

Answer 6

Employees of an insurance company who calculate the risk of a specific incandescence policy and decide what to charge people

Question 7

Insurance agent

Answer 7

Represents one or more insurance companies and recommends insurance policies that fit customers needs.

Question 8

Captive (or exclusive) insurance agent

Answer 8

Works for one particular insurance company

Question 9

Independent insurance agency

Answer 9

Represents many different insurance companies

Question 10

Insurance policy

Answer 10

Contract between insurance company and the policy owner

Question 11

Auto insurance policy

Answer 11

Specifies the coverage provided by the insurance company for a particular individual and their vehicle

Question 12

Third-party liability

Answer 12

Legal term describes a person who has experienced loss because of the insured

Question 13

Bodily injury liability coverage

Answer 13

I text you again really associate with injuries you caused others

Question 14

Property damage liability coverage

Answer 14

Protects against losses that will result in the policy or damages another person’s property is his or her car

Question 15

Accident benefit coverage

Answer 15

Sure is against the cost of medical care for you and other passengers in your car

Question 16

Uninsured motorist coverage

Answer 16

In Jersey and Sikasso bodily injury one accident caused by another driver who is not insured

Question 17

Collision insurance

Answer 17

Insures against costs of damage to your car resulting from an accident it was the driver of your car is at fault

Question 18

Comprehensive coverage

Answer 18

Insurers you against damage to your car that is caused by a natural or unnatural event such as a fire, theft, explosion, riot, etc.

Question 19

Deductible

Answer 19

I set dollar amount that you are responsible for paying for any coverage is provided from your insurance

Question 20

Facility association

Answer 20

Sure is the drivers and able to change insurance with an individual company are able to team coverage they need to operate their vehicles legally

Question 21

Exclusion

Answer 21

Return caring and insurance contracts are policies that describes items are circumstances that are excluded from your insurance

Question 22

Factors that affect your auto insurance premium

Answer 22

How you use your vehicle, value of car, repair a record of your car, your location, your driver training, your driving record, your age and sex, and you’re driving distance.

Question 23

All Perils coverage

Answer 23

Text the home and any other structures on the property against all of his except those are specifically excluded by policy

Question 24

Named perils coverage

Answer 24

Protects the home and any other structure on the property against only those events name to the policy

Question 25

Actual cash value policy

Answer 25

Pays you the value of the damage property after considering it’s depreciation

Question 26

Replacement cost policy

Answer 26

KZ the cost of replacing the damaged property with an item of a similar brand and quality

Question 27

Home inventory

Answer 27

Contains detailed to ration of all your personal property that can be used in filing a claim

Question 28

Personal property floater

Answer 28

An extension of the homeowners insurance policy that allows you to itemize your valuables

Question 29

Tenants insurance

Answer 29

Transposing to protect superstitions within the house condo or apartment that you are renting

Question 30

What is the first step in risk management ?

Answer 30

To recognize the risks to which you are exposed

Question 31

What is a personal umbrella liability policy

Answer 31

The supplement to auto at homers insurance provides additional personal liability coverage