Quiz Questions On Insurance and Risk Management - 3

Choose The Statement That Is True About Health Insurance.

a. You do not need health insurance if you do not have a full time job.

b. You don't need health insurance if you are young and healthy.

c. You don't need health insurance if you are under age 26.

d. You should always have health insurance, regardless of your circumstances.

Answer: The correct answer is d. You should always have health insurance, regardless of your circumstances.

Explanation: The correct statement about health insurance is option d: "You should always have health insurance, regardless of your circumstances." This is because health insurance provides financial protection for medical care, and having coverage is recommended irrespective of employment status, age, or health condition.

If You Get Into A Car Accident, Your _______________ May Increase Because You Will Be Considered Riskier For Insurance Companies To Cover.

A. Car loan payment

B. Claims adjustment

C. Insurance premium

D. Taxes

Answer: The correct answer is C. Insurance premium.

Explanation: When you're involved in a car accident, insurance companies often view you as a higher risk for future claims. As a result, they may raise your insurance premium to offset the increased likelihood of providing coverage for potential accidents or damages, ensuring they can manage the added risk and associated costs. This adjustment is a common practice in the insurance industry to reflect the changed risk profile of the policyholder.

How Can Insurance Protect You From Financial Loss?

A) Insurance can offer easy monthly payment options for premiums.

B) Insurance can offer warranties on household items.

C) Insurance can offer low co-insurance policies.

D) Insurance can cover you or your property in case of an accident, theft, or another unpredictable event.

Answer: The correct answer to the question is: D) Insurance can cover you or your property in case of an accident, theft, or another unpredictable event.
Explanation: Insurance protects from financial loss by covering you or your property in the event of accidents, theft, or unpredictable incidents. This coverage safeguards against unexpected expenses, providing financial security. Options like monthly payments, warranties, and low co-insurance policies are additional features that contribute to a comprehensive protection plan.

Buying A Home Security System Is An Example Of Protecting Your Home Against________.

A. Deductibles

B. Insurance

C. Risk

D. Warranties

Answer: The correct answer is C) Risk
Explanation: Buying a home security system is a measure taken to safeguard against potential risks, defined as the chance of loss or perils to the insured property. By installing such a system, individuals aim to minimize the probability of actual results differing from expected outcomes, enhancing overall protection for their homes. The choice aligns with the broader concept of risk management in the context of home security.

What Is A Risk Management Strategy You Could Use To Protect Your Home?

A) Buying a home security system

B) Installing front porch cameras to monitor your

home

C) Purchasing reflective clothing to wear while biking

at night

D) A and B

Answer: The correct answer is D) A and B
Explanation: This means buying a home security system (Option A) and installing front porch cameras to monitor your home (Option B). These measures are effective in enhancing the security of your home by deterring potential threats and providing surveillance.