Multiple Choice Questions

Insurance companies create a pool of funds to handle what?
  • share
  • a pool of funds
  • reducing risk
  • risk
Maria's family has a health insurance plan. Her mother has $350 deducted from her paychecks each month.When Maria visited the doctor, her mother paid a $25 fee. The insurance company covered the rest of the cost of the visit.When Maria's mother went to the hospital, her family was responsible for paying the first $1,000 of the bill. After this payment, the insurance company covered the rest of the costs.Read the passage about a family health insurance plan.What is the $25 fee Maria's mother paid when Maria visited the doctor?
  • premium
  • life insurance
  • share
  • co-payment
When an insurance company needs to provide a payout, the money is removed from
  • a pool of funds
  • People are less worried when they know they have protection from risk
  • The value of the premiums the company takes in is higher than the value of the payouts it makes.
  • reducing risk
If two people are invited to invest and become partners in a business, the business owners will then ______ the risk
  • reducing risk
  • medical costs can be extremely high, and insurance is more affordable than paying out-of-pocket for a hospital stay.
  • share
  • risk
An entrepreneur keeps backup funds in a savings account so that if their business experiences a loss, they will be able to recuperate. What type of risk management is this an example of?
  • reducing risk
  • share
  • a pool of funds
  • medical costs can be extremely high, and insurance is more affordable than paying out-of-pocket for a hospital stay.
What must happen in order for an insurance company to make a payout? Check all that apply.The insurance company must verify the claim.The insured party must file a claim.The insured party must purchase property.The insurance policy must be in place.The insured party must experience a covered loss.
  • life insurance
  • The insurance company must verify the claim.The insured party must file a claim.The insurance policy must be in place.The insured party must experience a covered loss.
  • co-payment
  • The insurance company finds that a homeowner intentionally caused damage.
Which questions about risk should someone ask before making a big purchase? Check all that apply. What problems are most likely to happen?What can be done to avoid liability?What could go wrong?What problems could be most damaging?What option has no risk?
  • People are less worried when they know they have protection from risk.
  • medical costs can be extremely high, and insurance is more affordable than paying out-of-pocket for a hospital stay.
  • By using a screen protectorBy using an antivirus appBy using a protective case
  • What problems are most likely to happen?What could go wrong?What problems could be most damaging?
Roland has purchased a new tablet. How he can avoid risk? Check all that apply.by using a screen protectorby letting his toddler play with itby using an antivirus appby using a protective caseby letting his friends borrow it
  • The insurance company finds that a homeowner intentionally caused damage.
  • By using a screen protectorBy using an antivirus appBy using a protective case
  • What problems are most likely to happen?What could go wrong?What problems could be most damaging?
  • reducing risk.
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Multiple Choice Questions
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