1. UNIT 8: Risk Management TEST REVIEW

2. The fee paid by the policyholder is called a ____. a.Policyc.Premium b.Deductibled.Face amount

3. Restoring a policyholder to his or her original financial condition is called ____. a.Probabilityc.Deductible b.Exclusiond.Indemnification

4. One who calculates an insurance premium is a(n) ____. a.Agentc.Beneficiary b.Actuaryd.Policy-holder

5. A(n) ____ is a specific amount subtracted from covered losses. a.Benefitc.Deductible b.Exclusiond.Premium

6. A ____ is the likelihood of some loss being increased. a.Hazardc.Risk b.Perild.Loss

7. Which of the following can help reduce insurance costs? a.Increase deductibles b.Purchase group insurance c.Look for discount opportunities d.All of these

8. The possibilities of loss or harm to real or personal property are called ____ risks. a.Personalc.Liability b.Propertyd.Indemnity

9. To ____ risk, you take measures to lessen the frequency or severity of losses that may occur. a.Increasec.Shift b.Reduced.Assume

10. By obtaining insurance, and individual ____ risk. a.Avoidsc.Transfers b.Increasesd.Assumes

11. ____ Insurance is required by law in the state of Virginia. a.Homeowner’s c.Renter’s b.Auto Liabilityd.Health

12. To protect a vehicle from damage not caused in an accident a ____ is purchased. a.Fire policyc.Floater b.Comprehensive policyd. Liability coverage

13. The ____ is the individual who will receive the benefits of a life insurance policy a.Trusteec.Power of Attorney b.Beneficiaryd.Notary Public

14. Which of these will increase car insurance premiums? a.Older carc.Rural driving b.Short driving distanced.Filing claims

15. Which type of insurance coverage would pay for damage incurred from backing into a grocery cart in a parking lot. a. Comprehensive b. Collision c. Personal injury protection d.Liability

16. Which coverage pays for injuries and damages to others only? a.Comprehensivec.Personal injury b.Collisiond.Liability

17. Which coverage pays for damage to your car from storms/vandalism/etc…? a.Comprehensivec.Personal injury b.Collisiond.Liability

18. A type of health insurance that allows people who have lost their jobs to continue their health care is called ______? a.FICAc.COBRA b.HIPAAd.PYTHON

19. A(n) ____ clause prevents cancellation of a policy after a specified period of time. a.Suicidec.Rider b.Incontestabilityd.Renewability

20. Being paid twice the death benefit for an accidental death is called ____. a.Waiver of premiumc.Double indemnity b.Term insuranced. Incontestability

21. Which of these is insurance for a specified time only? a.Termc.Credit life b.Major medicald.Straight life

22. Which of these is considered income protection insurance? a.Termc.Medicare b.Cash valued.Disability

23. Social Security is considered this type of insurance? a.OASDIc.OSHA b.FBLAd.XYZ

24. Medicare is insurance for people over the age of ______? a.10c.65 b.21d.75

25. _____ is a government-sponsored health insurance for people with low incomes and limited resources. a.Social Securityc.Medicare b.COBRAd.Medicaid

26. Which of the following is a type of managed care plan? a.Preferred Provider Organization (PPO) b.COBRA c.Medicare d.Medicaid

27. A method for spreading individual risk among a large group of people to make losses more affordable for all. Insurance Actuarial table Beneficiary Unearned premium Cash value Claim Coverage Peril Standard policy Loss Actuary Deductible Exclusions Face amount Grace period Hazard Insurance agent Insured Liability Claims Adjustor Proof of loss Benefits

28. A table of premium rates based on ages and life expectancies. Insurance Actuarial table Beneficiary Unearned premium Cash value Claim Coverage Peril Standard policy Loss Actuary Deductible Exclusions Face amount Grace period Hazard Insurance agent Insured Liability Claims Adjustor Proof of loss Benefits

29. A specialist in insurance calculations and statistics. Insurance Actuarial table Beneficiary Unearned premium Cash value Claim Coverage Peril Standard policy Loss Actuary Deductible Exclusions Face amount Grace period Hazard Insurance agent Insured Liability Claims Adjustor Proof of loss Benefits

30. A person named on an insurance policy to receive the benefits from the policy. Insurance Actuarial table Beneficiary Unearned premium Cash value Claim Coverage Peril Standard policy Loss Actuary Deductible Exclusions Face amount Grace period Hazard Insurance agent Insured Liability Claims Adjustor Proof of loss Benefits

31. Sums of money to be paid for specific types of losses under the terms of an insurance policy. Insurance Actuarial table Beneficiary Unearned premium Cash value Claim Coverage Peril Standard policy Loss Actuary Deductible Exclusions Face amount Grace period Hazard Insurance agent Insured Liability Claims Adjustor Proof of loss Benefits

32. The amount of money payable to a policyholder upon discontinuation of a life insurance policy. Insurance Actuarial table Beneficiary Unearned premium Cash value Claim Coverage Peril Standard policy Loss Actuary Deductible Exclusions Face amount Grace period Hazard Insurance agent Insured Liability Claims Adjustor Proof of loss Benefits

33. A policyholder’s request for reimbursement for a loss under the terms of an insurance policy. Insurance Actuarial table Beneficiary Unearned premium Cash value Claim Coverage Peril Standard policy Loss Actuary Deductible Exclusions Face amount Grace period Hazard Insurance agent Insured Liability Claims Adjustor Proof of loss Benefits

34. An individual who determines the value of the property destroyed or damaged by a covered hazard. Insurance Actuarial table Beneficiary Unearned premium Cash value Claim Coverage Peril Standard policy Loss Actuary Deductible Exclusions Face amount Grace period Hazard Insurance agent Insured Liability Claims Adjustor Proof of loss Benefits

35. Protection provided by the terms of an insurance policy. Insurance Actuarial table Beneficiary Unearned premium Cash value Claim Coverage Peril Standard policy Loss Actuary Deductible Exclusions Face amount Grace period Hazard Insurance agent Insured Liability Claims Adjustor Proof of loss Benefits

36. The specified amount of a loss that the policyholder pays before the insurer is obligated to pay anything. The insurance company pays only the amount in excess of the deductible. Insurance Actuarial table Beneficiary Unearned premium Cash value Claim Coverage Peril Standard policy Loss Actuary Deductible Exclusions Face amount Grace period Hazard Insurance agent Insured Liability Claims Adjustor Proof of loss Benefits

37. Specified losses that the insurance policy does not cover. Insurance Actuarial table Beneficiary Unearned premium Cash value Claim Coverage Peril Standard policy Loss Actuary Deductible Exclusions Face amount Grace period Hazard Insurance agent Insured Liability Claims Adjustor Proof of loss Benefits

38. The amount stated in a life insurance policy to be paid upon death. Insurance Actuarial table Beneficiary Unearned premium Cash value Claim Coverage Peril Standard policy Loss Actuary Deductible Exclusions Face amount Grace period Hazard Insurance agent Insured Liability Claims Adjustor Proof of loss Benefits

39. The additional time after the premium due date that the insurer allows the policyholder to make the payment without penalty (usually 30 days). Insurance Actuarial table Beneficiary Unearned premium Cash value Claim Coverage Peril Standard policy Loss Actuary Deductible Exclusions Face amount Grace period Hazard Insurance agent Insured Liability Claims Adjustor Proof of loss Benefits

40. A condition that creates or increases the likelihood of some loss. For example, lightning can create a fire and defective house wiring can increase the likelihood of a fire. Insurance Actuarial table Beneficiary Unearned premium Cash value Claim Coverage Peril Standard policy Loss Actuary Deductible Exclusions Face amount Grace period Hazard Insurance agent Insured Liability Claims Adjustor Proof of loss Benefits

41. A professional insurance salesperson who acts for the insurer in negotiating, servicing, or writing an insurance policy. Insurance Actuarial table Beneficiary Unearned premium Cash value Claim Coverage Peril Standard policy Loss Actuary Deductible Exclusions Face amount Grace period Hazard Insurance agent Insured Liability Claims Adjustor Proof of loss Benefits

42. The person or company protected against loss (not always the owner of the policy). Insurance Actuarial table Beneficiary Unearned premium Cash value Claim Coverage Peril Standard policy Loss Actuary Deductible Exclusions Face amount Grace period Hazard Insurance agent Insured Liability Claims Adjustor Proof of loss Benefits

43. The legal responsibility to pay the cost of another person’s losses or injuries. Insurance Actuarial table Beneficiary Unearned premium Cash value Claim Coverage Peril Standard policy Loss Actuary Deductible Exclusions Face amount Grace period Hazard Insurance agent Insured Liability Claims Adjustor Proof of loss Benefits

44. An unexpected reduction in value of the insured’s property caused by a covered peril; the basis of a valid claim for reimbursement under the terms of an insurance policy. Insurance Actuarial table Beneficiary Unearned premium Cash value Claim Coverage Peril Standard policy Loss Actuary Deductible Exclusions Face amount Grace period Hazard Insurance agent Insured Liability Claims Adjustor Proof of loss Benefits

45. An event whose occurrence can cause a loss; people buy policies for protection against such perils as a fire, storm, explosion, accident or robbery. Insurance Actuarial table Beneficiary Unearned premium Cash value Claim Coverage Peril Standard policy Loss Actuary Deductible Exclusions Face amount Grace period Hazard Insurance agent Insured Liability Claims Adjustor Proof of loss Benefits

46. The written verification of the amount of a loss that must be provided by the insured to the insurer before a claim can be settled. Insurance Actuarial table Beneficiary Unearned premium Cash value Claim Coverage Peril Standard policy Loss Actuary Deductible Exclusions Face amount Grace period Hazard Insurance agent Insured Liability Claims Adjustor Proof of loss Benefits

47. The contract form that has been adopted by many insurers, approved by state insurance divisions, or prescribed by law (modifications are made to suit the needs of the individual). Insurance Actuarial table Beneficiary Unearned premium Cash value Claim Coverage Peril Standard policy Loss Actuary Deductible Exclusions Face amount Grace period Hazard Insurance agent Insured Liability Claims Adjustor Proof of loss Benefits

48. The portion of a paid premium that the insurer has not yet earned because the policy term has not ended. The unearned premium is returned to the policyholder when a policy is canceled. Insurance Actuarial table Beneficiary Unearned premium Cash value Claim Coverage Peril Standard policy Loss Actuary Deductible Exclusions Face amount Grace period Hazard Insurance agent Insured Liability Claims Adjustor Proof of loss Benefits

49. List one way an individual can reduce insurance costs.

50. Give an example of each of the following categories of risks that are protected by homeowner’s insurance: Hazards:_______________________________ Criminal activity: _______________________ Liability: _______________________________

51. List 3 items not typically covered by homeowner’s insurance.

52. List 3 factors affecting the cost of automobile insurance:

53. Describe the following: Liability coverage Collision coverage Comprehensive coverage

54. List three reputable insurance companies :

55. List 3 categories of health insurance coverage:

56. Compare and contrast the following: Medicare vs. Medicaid: