Personal Finance
Unit 6 Lesson 9
Financial Risks Unit Test
1. What outcomes are possible with speculative risk? D
2. Which of the following choices incur speculative risk? A & C
3. What is risk reduction? B
4. What is risk transference? C
5. Which of these options is a new type of insurance? C
6. Which of these choices are add-on options for insurance policies? Select the two correct answers.
A & C
7. How much of the US population is covered by some form of health insurance? C
8. What is the largest health program in the United States? C
9. How are SSDI and SSI different? C
10. What is SSI? B
11. How might insurance be affected if the applicant has a dangerous job? D
12. What might happen if someone is dishonest on their insurance application? C
13. What is the 80% rule? D
14. What is one difference between an HO-3 and HO-5 policy? C
15. What is no-fault insurance? D
16. Why does geographic location affect the cost of premiums? C
17. Describe double indemnity? C
18. Which population is most often the victim of synthetic identity theft? D
19. Which two methods can help you avoid being a phishing scam victim? B & D
20. Can the Consumer Financial Protection Bureau or Better Business Bureau accredit companies? A
Does that agency require a fee for accreditation?
10 answers
Thanks for the advice on the study Guide it helped a lot.
1.D
2. A+C
3. B
4.C
5.C
6.A+c
7.C
8.C
9.C
10.B
11.D
12.C
13.D
14.C
15.D
16.C
17.C
18.A
19.B+C
20.A
I made a 100%
1 - all of the above
2 - stocks AND options
3 - A strategy that reduces risk by minimizing the chance that the loss occurs or reduces the value lost.
4 - A strategy where the risk of loss is shared with another person, entity or group.
5 - identity theft
6 - jewelry rider AND collision insurance
7 - 92%
8 - Medicare
9 - SSDI is an insurance program paid out of the Social Security Trust fund and SSI is a needs-based program.
10 - a need-based program run by the SSA and only considers the financial need of the individual who is elderly or disabled
11 - All of the options are possible.
12 - The policyholder may be prosecuted for insurance fraud, which is a crime.
13 - Insurance companies will require the policy holder take 80% of the replacement cost of the entire property in coverage, or they will reduce the reimbursements by a proportionate amount.
14 - The HO-3 uses replacement cost reimbursement for dwelling and actual cash value for personal property while the HO-5 uses replacement cost for dwelling and for personal property.
15 - Unlimited PIP mandated by the states to reduce the number of small and frivolous lawsuits.
16 - Because insurance companies review the statistical history of claims for an area and if there is an increased risk of claims for accidents or theft, they will raise the premium.
17 - a life insurance rider that may result in beneficiaries receiving double the insured amount in case of death or severe injury
18 - children
19 - Do not answer the phone if you do not know the caller. AND Avoid clicking links in e-mails.
20 - Only the BBB accredits companies, and it requires a fee for accreditation.