Unit 4 Flashcards
Specific amount of money that you pay when insurance only covers a portion of costs
Out-of-pocket Expense
Paperwork filed with an insurance company in order to get them to cover a loss for someone they insure
Claim
Describes the type of coverage in an insurance agreement
Policy
Amount you pay monthly, quarterly, semiannually, or annually to purchase different types of insurance
Premium
Applies to the amount of protection you have through an insurance company in the event of a loss
Coverage
Amount you must pay before you begin receiving any benefits from your insurance company
Deductible
The state or quality of being obligated according to law or equity
Liability
T or F: Raising your deductible may be a good option when it comes to lowering your premium, but it is important to do a break-even analysis before making that decision
True
T or F: Financially, it makes sense to stay on your parents’ auto insurance policy through college if possible
True
Which of the following would not be a huge financial, If you have a full emergency fund of $500 or more
lost cell phone
The time between the disabling event and the beginning of payment in your disability coverage is called
Elimination Period
What does it mean to “transfer risk”
A risk management and control strategy that if the risk is higher the more control the company will help with it
Explain the importance of liability protection
If you get in an accident with out this insurance, you have to pay for it all
Why should life insurance not be used as an investment
Life insurance doesn’t give you much a return, you put more into it than you are making
Explain how someone becomes self-insured
You can be self-insured by staying out of debt, investing, when you cover the small things
