PFL Semester Test 2 (Ch.11)

While planning for your summer vacation, you decide not to go four-wheeling because it is dangerous.
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Terms in this set (29)
__________ are the payments you make for insurance coverage.PremiumsYou have a sore throat and your mother takes you to the doctor. Before leaving, she gives the receptionist her insurance card and a check for $30. The $30 is called acopay.__________ insurance provides benefits to a person who becomes ill or injured and needs extended time to recover before returning to work.DisabilityGrandma Renae is 68 years of age. Her medical coverage is provided by the federal government through a program calledMedicare.MOST low income citizens in the U.S., regardless of age, are eligible to participate in a federal insurance program known asMedicaid.Which of the following statements about insurance is the MOST accurate?Insurance is designed to transfer your risk to a third party.When you apply for auto insurance, which of the following factors will NOT affect your premiums?your family incomeIf you are in an auto accident, the type of insurance that will repair your vehicle is called __________ insurance.If you are in an auto accident, the type of insurance that will repair your vehicle is called __________ insurance.There is a storm while you and Evan are watching a movie at the theater in the mall. When you go outside, you realize a tree has fallen on your car. What kind of insurance will cover the damage?comprehensiveAidan has a low credit score because he failed to pay his credit card bills on time. When applying for insurance, Aidan should expect the insurance company toraise his premiums because he was irresponsible.The deductible on your insurance policy represents __________ risk.retainedSuppose you are in an accident while driving home from school. Which of the following statements is certain about the person driving the other vehicle?She may or may not not have insurance.The concept of probability represents the idea ofchance.Term life insurance pays its benefit if the insured diesduring the term of the policy.Which of the following is NOT associated with a universal life insurance policy?term life insurance coverageWhich of the following individuals does not need long-term care?age is not a factor in needing long-term careThe light turns yellow as he approaches the intersection. Instead of slowing down to stop, your friend speeds up to get through the light before it turns red. Your friend's behavior is an example of __________ driving practices.riskyYour dad installed smoke detectors in your house and changes the battery twice a year to keep them in working order. Your dad is __________ risk.reducingSuppose you have always dreamed of owning your own business. However, you do not follow through on those dreams because you are afraid you will lose money and the business will fail. Your behavior is an example of __________ risk.avoiding