Deck 14: Insurance and Investment Issues

Question 1

Owning a home is a type of

A)franchise development.
B)liquid investment.
C)indirect investment.
D)direct investment.

Answer 1

D

Question 2

All homeownersʹ policies provide liability coverage.

Answer 2

True

Question 3

All states require auto insurance.)

Answer 3

False

Question 4

Insurance can now be bought online.

Question 5

The commitment of funds to long term growth is called

A)investment.
B)volatility.
C)dividends.
D)insurance.

Question 6

The primary purpose of insurance is protection.

Question 7

Contracts in which the insurer promises the insured a series of periodic payments are called

A)stocks.
B)annuities.
C)bonds.
D)shares.

Question 8

Of all types of insurance, which is the most costly and the most vital?

A)property
B)health
C)auto
D)liability

Question 9

Enticing come-ons that offer to make huge profits from a small investment in a very short time are

A)ponzi schemes.
B)low balling.
C)bait and switch.
D)high balling.

Question 10

Paying a commission for recruiting new distributors in a multilevel marketing plan is something consumers should watch out for. Most states outlaw this practice which is called:

A)pyramiding.
B)garnishing.
C)bait and switch.
D)low balling.

Question 11

There are completely risk free investments.

Question 12

The amount policy holders pay towards a loss before insurance coverage begins is called the

A)endorsement.
B)condition.
C)exclusion.
D)deductible.

Question 13

Life insurance is paid to beneficiaries rather than the insured.

Question 14

Medicare and Medicaid are forms of insurance people buy in the market.

Question 15

Coverage that pays for repairs or replacement if a vehicle flips over or crashes into an object is called

A)personal injury protection.
B)collision insurance.
C)bodily injury liability.
D)comprehensive coverage.

Question 16

What provides benefits for nursing home, assisted living, or in -home care that is not covered by Medicare insurance?

A)Long Term Care Insurance
B)Disability Insurance
C)Workerʹs Compensation
D)Medicaid

Question 17

The purpose of investing is

A)to have standard insurance coverage.
B)protection.
C)to build and maintain wealth.
D)to guard against deceptive claims.

Question 18

Money paid if a disability is due to illness or injury received on the job is called

A)Medicare
B)Workerʹs Compensation
C)Disability Medicaid
D)Life Insurance

Question 19

What factors affect automobile insurance premiums?

A)type of vehicle, model, year, and value
B)driving history and location
C)gender and age
D)All of the above affect premiums.

Question 20

Insurance can be a form of investment.

Question 21

A financial arrangement between individuals and insurance companies called
, protects against loss or injury.

Question 22

What three things does the book say a successful investor should do?

Question 23

Describe at least three ways to reduce auto premiums.

Question 24

A(n)is a person who determines the amount of claim, loss, or damage payable under a contract.

Question 25

Investors should try to diversify their investments.

Question 26

The federal health insurance program for low income people is .

Question 27

What are the four types of credit insurance and briefly describe each.

Question 28

There are who are agents that are NOT associated with established companies and who are engaging in illegal practices.

Question 29

Stocks represent ownership.

Question 30

The federal health insurance program for people 65 or over and many with disabilities is
.

Question 31

Once one saves for retirement, the need of financial planning is over.

Question 32

Churning is a legal practice.