Insurance

Question 1

Provides payments for both liability and property insurance on a vehicle

Answer 1

Automobile insurance

Question 2

Provides payment to replace earnings during times when workers cannot work due to illness or injury

Answer 2

Disability insurance

Question 3

Provides money to pay for health care for illness, injury, or, in some cases, preventive care

Answer 3

Health insurance

Question 4

Provides payment to cover liability losses as well as damage and loss of the home structure and its contents

Answer 4

Homeowners insurance

Question 5

Provides payment to others if a member of the insured household accidently causes harm to other people or property

Answer 5

Liability insurance

Question 6

Provides payment to beneficiaries who were named by the insured person

Answer 6

Life insurance

Question 7

Provides payment for extended nursing care due to accidents, illness, or old age

Answer 7

Long‐term care insurance

Question 8

Provides payment to the insured person if his or her property is damaged or destroyed by an accident covered by the insurance policy.

Answer 8

Property insurance

Question 9

Provides payment to renters to cover the damage and loss of property in a rental unit in addition to liability losses

Answer 9

Renters insurance

Question 10

Someone who receives money if an insured person dies

Answer 10

Beneficiary

Question 11

A formal request to an insurance company asking for a payment when the policyholder has an accident, illness or injury

Answer 11

Claim

Question 12

Requires the insured individual to pay a fixed percentage of the loss after the deductible has been paid

Answer 12

Co‐insurance

Question 13

The risks covered and amount of money paid for losses under an insurance policy

Answer 13

Coverage

Question 14

The out‐of‐pocket money paid by the policyholder before an insurance company will cover the remaining costs attributed to the loss

Answer 14

Deductible

Question 15

Someone who relies on someone else for income and care

Answer 15

Dependent

Question 16

Cash set aside that can be used to cover the costs of unexpected expenses

Answer 16

Emergency savings

Question 17

Employers may offer employee benefits in the form of products or services that add extra value for employees beyond earned wages

Answer 17

Employee benefits

Question 18

Doing something in the home without pay that takes raw materials along with a family member’s skill, experience, knowledge, and household equipment, to produce a useful product or service

Answer 18

Household production

Question 19

The donation of a product or service in place of cash

Answer 19

In‐kind income

Question 20

A financial product (called an insurance contract or policy) purchased by many people facing a similar risk to protect against the risk of larger losses.

Answer 20

Insurance

Question 21

When the act of insuring an event increases the likelihood that the event will happen

Answer 21

Moral hazard

Question 22

A contract between the insurance company and the insured that states the exact terms of the policy including what risks are covered and how much will be paid for any losses

Answer 22

Policy

Question 23

A person who owns the insurance policy

Answer 23

Policyholder

Question 24

The money paid to an insurance company to purchase a policy

Answer 24

Premium

Question 25

The chance of loss from an event that cannot be entirely controlled

Answer 25

Risk

Question 26

anything that may cause loss

Answer 26

Peril

Question 27

increases the likelihood of loss through peril

Answer 27

Hazard

Question 28

failure to take ordinary or reasonable care to prevent accidents from happening

Answer 28

Negligence

Question 29

insurance that covers physical injuries caused by a vehicle accident for which you are responsible

Answer 29

Bodily Injury Liability

Question 30

insurance that covers you and your family members if you are involved in an accident with an uninsured or a hit-and-run driver

Answer 30

Uninsured motorist's protection

Question 31

motor vehicle insurance that applies when you damage the property of others

Answer 31

Property damage liability

Question 32

is insurance that covers damage to your vehicle when it is involved in an accident

Answer 32

Collision

Question 33

This covers fire damage to your vehicle, break-ins, vandalism, or theft, as well as natural disasters such as an earthquake, hail, hurricane, or flood. (everything except an actual collision)

Answer 33

Comprehensive

Question 34

arrangement whereby drivers who are involved in accidents collect money from their own insurance companies (Wisconsin is NOT a no-fault state)

Answer 34

No-fault system

Question 35

group of people who cannot get motor vehicle insurance who are assigned to each insurance company operating in the state

Answer 35

Assigned risk pool