PFL -- Insurance -- Chapter 6 Flashcards
Of the many risks you will face during your lifetime, some are avoidable, and some are not.
true
Risk is the chance of injury, damage, or economic loss.
true
A business can take action to avoid or lessen the impact of a systemic risk.
false
Avoiding risks is the strategy whereby you stop the behavior that leads to the risk.
true
When you buy insurance, you are following a risk strategy known as transferring risk.
true
Self-insuring is an effective method of reducing risks.
false
Fee-for-service health insurance plans typically pay 100% of the costs for doctor visits and hospital says.
false
If you are a member of a health maintenance organization (HMO), you can choose to be treated by any doctor.
false
Medicare is an example of a government-sponsored health care plan.
true
Major medical coverage protects against loss due to very serious injury or illness.
true
Today people can expect to pay lower insurance copays and deductables than in the past.
true
Health flexible spending accounts allow you to set aside money pretax to pay for qualified medical expenses.
true
Short-term disability insurance usually picks up at the point where long-term disability ends.
false
Renewable term life insurance has the same premium each year, but the amount of life insurance benefits decreases each year.
false
Permanent life insurance provides a death benefit and builds cash value.
true
Group life insurance is a lower risk to the insurance company because the risk is spread among more people.
true
Portable insurance is group life insurance that terminates when you leave your job.
false
When items are stolen from your home, you must file a claim with the insurance company to get reimbursed for the loss.
true
Financial responsibility laws require that motorists carry collision insurance on their cars.
false
You may be able to reduce your insurance premiums if you purchase insurance from an insurance agency rather than directly from an insurance company.
true
A type of life insurance that allows policyholders to change the premiums and the death benefit throughout the life of the policy is called
universal life
A type of homeowner’s coverage that provides protection for you if someone is injured on your property is called
personal liability
Which type of automobile insurance provides coverage against damage to your car if it is hit by another car or turns over
collision
Which type of automobile insurance provides coverage against damage to your car from fire, theft, hail, water falling objects or vandalism?
comprehensive
All of the following actions would likely help reduce the cost of automobile insurance except:
driving more during the week and less on weekends
Which of the following types of risk might involve breaking your leg and missing an important event?
personal risk
Which of the following risk strategies involves lowering your chances of risk, such as taking lessons to lower your risk of falling while skiing?
reducing risks
Which of the following risk strategies involves self-insuring?
assuming risks
Which of the following types of health insurance plans allows patients to choose doctors from approved lists and has a group of health care providers who work together to provide services
prefered provider organization
Which of the following types of health insurance coverage provides for routine medical care, hospital stays, and surgery services?
basic health care
Which of the following actions would help reduce the cost of health insurance premiums?
raising your deductible and copay
Group insurance plans:
both a and c
Which of the following policies provides a portion (such as 65%) of regular pay for up to 2 yrars to an insured person who cannot work due to illness or injury?
short term disability
The amount of money you must pay toward your medical expenses before your i nsurance company begins to pay is called the:
deductibles
Which of the following types of life insurance is also called pure insurance because it does not build cash value?
term
Losing money, big or small, is which type of risk?
risk of financial loss
The amount you pay each time you visit a doctor is called the:
copay
Which of the following types of life insurance is the least expensive?
term
Which of the following would be considred real property?
house
Which of the following provides liability coverage beyond the coverage in your home or auto insurance policy?
umbrella policy
The price paid for insurance coverage
premium
A tenant’s policy that protects against the loss of personal property
renters insuranre
Buying insurance to shift the risk of financial loss to an insurance company
risk transfer
Setting aside money to be used in the event of an injury or loss
self-insure
Finding ways to lower your chance of incurring a loss
risk reduction
The person designated to receive money from a life insurance policy?
beneficiary
The liklihood of a risk resulting in a loss
probability
Stopping behavior that leads to a risk
risk avoidance
A physical injury, damage to property, or disappearance of property
loss
A clause in a health insurance policy that provides 100% coverageof medical expenses after a certain amount has been paid by the insured
stop loss provision
