Finance 2164 Final Review Exam Questions
With Verified Answers
Insurance Agencies - ANSWER Businesses that sell insurance to individuals
and/or businesses
- Usually not owned by the insurance companies for which they sell insurance
policies
Types of Insurance for Individuals - ANSWER - Life
- Health
- Long-Term Care
- Disability
- Homeowners and Rental
- Car
- Umbrella
- Travel
Life Insurance - ANSWER Pays off if you die
Health Insurance - ANSWER Covers healthcare costs
Long-term care Insurance - ANSWER Provides funds for nursing home care
Disability Insurance - ANSWER Provides income if you become disabled and
can't work
Homeowners and Rental Insurance - ANSWER Covers damage to your
house/apartment/condo and theft losses
Car Insurance - ANSWER Covers damage to your car or theft of your car
Umbrella Insurance - ANSWER Supplemental insurance to cover costs that
aren't covered by your other policies
Travel Insurance - ANSWER Covers medical and evacuation costs when you
travel overseas
Types of Insurance for Businesses - ANSWER - Property
- Business Interruption
- Directors and Officers'
- Liability Insurance
, - Workmen's Compensation
- Businesses can also offer life, health and disability insurance to their workers
Property Insurance - ANSWER Covers damage to buildings and equipment
Business Interruption Insurance - ANSWER Covers lost profits if something
significantly disrupts the ability to do business (fire, natural disaster, etc.)
Directors and Officers' Insurance - ANSWER Covers cost of litigation against
directors and officers
Liability Insurance - ANSWER Covers the costs of lawsuits against a business
Workmen's Compensation - ANSWER Covers the costs of on-the-job injuries to
workers
Underwriting (Insurance-related job) - ANSWER Assessing the risk of an
individual or company and setting the appropriate price for the insurance
company
Claims Adjustor (Insurance-related job) - ANSWER Analyzing insurance claims
to assess the legitimacy and payout requirements
Investment Management (Insurance-related job) - ANSWER Managing the
insurance company's investments
Risk Management (Insurance-related job) - ANSWER Analyzing the insurance
company's portfolio of insurance policies to ensure that there is no excessive
risk
Operations (Insurance-related job) - ANSWER Managing the insurance
company's computer systems, databases and payment systems
Actuary (Insurance-related job) - ANSWER Doing calculations that estimate the
aggregate behavior and risk of a large group of people
Reinsurance - ANSWER Insurance for insurance companies
- Covers payments above a specified amount that must be made by insurance
companies on their policies
- Limits the total payout risk from large disasters
Pros and Cons of an Insurance Career - ANSWER Pros:
- Helping people/businesses reduce their risk
- Insurance jobs are located throughout the U.S.
With Verified Answers
Insurance Agencies - ANSWER Businesses that sell insurance to individuals
and/or businesses
- Usually not owned by the insurance companies for which they sell insurance
policies
Types of Insurance for Individuals - ANSWER - Life
- Health
- Long-Term Care
- Disability
- Homeowners and Rental
- Car
- Umbrella
- Travel
Life Insurance - ANSWER Pays off if you die
Health Insurance - ANSWER Covers healthcare costs
Long-term care Insurance - ANSWER Provides funds for nursing home care
Disability Insurance - ANSWER Provides income if you become disabled and
can't work
Homeowners and Rental Insurance - ANSWER Covers damage to your
house/apartment/condo and theft losses
Car Insurance - ANSWER Covers damage to your car or theft of your car
Umbrella Insurance - ANSWER Supplemental insurance to cover costs that
aren't covered by your other policies
Travel Insurance - ANSWER Covers medical and evacuation costs when you
travel overseas
Types of Insurance for Businesses - ANSWER - Property
- Business Interruption
- Directors and Officers'
- Liability Insurance
, - Workmen's Compensation
- Businesses can also offer life, health and disability insurance to their workers
Property Insurance - ANSWER Covers damage to buildings and equipment
Business Interruption Insurance - ANSWER Covers lost profits if something
significantly disrupts the ability to do business (fire, natural disaster, etc.)
Directors and Officers' Insurance - ANSWER Covers cost of litigation against
directors and officers
Liability Insurance - ANSWER Covers the costs of lawsuits against a business
Workmen's Compensation - ANSWER Covers the costs of on-the-job injuries to
workers
Underwriting (Insurance-related job) - ANSWER Assessing the risk of an
individual or company and setting the appropriate price for the insurance
company
Claims Adjustor (Insurance-related job) - ANSWER Analyzing insurance claims
to assess the legitimacy and payout requirements
Investment Management (Insurance-related job) - ANSWER Managing the
insurance company's investments
Risk Management (Insurance-related job) - ANSWER Analyzing the insurance
company's portfolio of insurance policies to ensure that there is no excessive
risk
Operations (Insurance-related job) - ANSWER Managing the insurance
company's computer systems, databases and payment systems
Actuary (Insurance-related job) - ANSWER Doing calculations that estimate the
aggregate behavior and risk of a large group of people
Reinsurance - ANSWER Insurance for insurance companies
- Covers payments above a specified amount that must be made by insurance
companies on their policies
- Limits the total payout risk from large disasters
Pros and Cons of an Insurance Career - ANSWER Pros:
- Helping people/businesses reduce their risk
- Insurance jobs are located throughout the U.S.
