Insurance Answers

10 verified answers2 views
3

In what circumstance would a property insurance claim be rejected?

A
The insurance company finds that a homeowner intentionally caused damage.
B
The property damage is caused by a natural disaster, such as a flood.
C
The insurance company changes its policies after property damage occurs.
D
The property damage is extensive and requires lengthy and expensive repairs.
4

Under which circumstance would someone need disability insurance?

A
A person's suitcase was stolen and valuables were lost.
B
A person has contracted the flu and needs a prescription.
C
A person was in a car accident and cannot work for several months.
D
A person's house was seriously damaged during a natural disaster.
5

sharemoveavoidreplace

A
share
B
move
C
avoid
D
replace
7

Why does insurance often provide "peace of mind"?

A
People know their insurance coverage will help prevent accidents and damage.
B
People trust that they will make a profit if they pay insurance premiums.
C
People are not concerned about their health if they can pay for doctor's visits.
D
People are less worried when they know they have protection from risk.
8

Insurance is a financial service that allows a

A
consumer to transfer all risk to a company.
B
company to control finances for a consumer.
C
consumer to share liability with a company.
D
company to maximize risk for a consumer.
9

Which is always a cost when buying insurance?

A
premium
B
deductible
C
co-payment
D
payout
10

How can an insurance company make a profit by taking in premiums and making payouts?

A
The value of the premiums the company takes in is higher than the value of the payouts it makes.
B
The value of the premiums the company takes in is equal to the value of the payouts it makes.
C
The company only makes payouts from a pool of funds, not from individual premiums.
D
The company issues its policies to individuals who are unlikely to require payouts.

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