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Insurance and Risk — Test Answers

25 verified answers
1
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What is the probability that the two dice have a sum of 11?

A
cap p times sum of 11 is equal to 1 over 12
B
cap p times sum of 11 is equal to 1 over 18
C
cap p times sum of 11 is equal to 1 over 17
D
cap p times sum of 11 is equal to 1 over 24
2
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A driver chooses a high deductible and low premium. What is the tradeoff?

A
higher monthly costs
B
more out-of-pocket cost during claims
C
no financial impact Correct answer: c
D
lower risk overall
3

What is a user agreement?

A
A banking feature
B
Terms explaining data use
C
A security alert
D
A password system
4

Which factors influence insurance needs? Select two.

A
Hobbies
B
Income
C
Dependents
D
Social media
5

What is the most likely outcome?

A
lower premium
B
free coverage
C
no coverage needed
D
higher premium due to risk
6

What does it mean to be overinsured?

A
Paying for more coverage than needed
B
Avoiding premiums
C
Having no insurance
D
Having too little coverage
7

What is the best insurance strategy?

A
choose highest deductible
B
avoid insurance
C
choose lowest cost
D
match coverage to risk and financial goals
8

Why might a frequent driver need more coverage?

A
higher risk exposure
B
lower cost
C
less driving
D
fewer accidents
9

If one marble is randomly selected, what is the probability the marble will be yellow? A jar contains five red marbles, seven yellow marbles, nine blue marbles, and four green marbles.

A
cap p times yellow is equal to 7 over 18
B
cap p times yellow is equal to 18 over 25
C
cap p times yellow is equal to 7 over 24
D
cap p times yellow is equal to 7 over 25
11

Why should users review data use policies?

A
To understand how data is handled
B
To reduce login time
C
To increase profits
D
To avoid passwords
12

Which detail in a user agreement is most important for security?

A
Interface design
B
Data sharing policies
C
App layout
D
Account colors
13

Why do phishing messages often create urgency?

A
To improve communication speed
B
To increase security awareness
C
To prevent account access
D
To encourage quick decisions without verification
14

What happens with a lower premium?

A
higher financial risk
B
no cost
C
lower risk
D
full coverage
15

What should insurance decisions be based on?

A
risk and personal needs
B
location only
C
price only
D
advertisements
16

Why should different accounts use different passwords?

A
To simplify password storage
B
To make login faster
C
To prevent multiple accounts from being compromised
D
To avoid using password managers
17

Why does insurance reduce financial risk?

A
Shares costs across a group
B
Eliminates all costs
C
Removes expenses
D
Guarantees income
18

How does multi-factor authentication improve security?

A
It adds an additional verification step
B
It removes the need for passwords
C
It stores passwords automatically
D
It shortens login time
19

What should an individual do if they recognize that they have a gambling problem?

A
ask for help
B
take a short break from gambling
C
play more games
D
find money to support gambling
20

What is represented in this scenario? A small-business owner noticed a decrease in their customers since a new casino was built a few blocks away.

A
gambling taking away money for necessities.
B
gambling increasing a strain on social services
C
casinos taking away earnings from other businesses
D
casinos providing revenue for the town

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