MODULE 4 - INSURANCE BASICS AND
PROPERTY INSURANCE QUESTIONS
WITH 100% CORRECT ANSWERS {
GRADED A+}
What is on the hierarchy of financial goals? Least significant to Most significant -
✔✔1. Travel
2. Business Ownership, Vacation home
3. College funding, Retirement planning, Mortgage payoff
4. Food/Shelter I Emergency Fund, Insurance coverage
What are the 5 steps of the risk management process?
- ✔✔1. Clarify objectives: What are the goals of the individual or business as it
relates to managing risk?
,2. Identify the risk: What is the risk that will prohibit the individual or business
from meeting the objectives?
3. Measure the risk: What is the magnitude of the risk that has been identified?
4. Manage the risk: How will the risk be controlled or financed?
5. Monitor the risk and its management: The risk and subsequent management
method should be reviewed on a regular basis as appropriate based on the level of
risk and the probability of its occurrence.
What is insurance management? - ✔✔The process of deciding how much and
what kind of insurance to buy.
What is risk management? - ✔✔A decision making process designed to
*identify* hazards systematically,
*assess* the degree of risk,
and determine the *best course of action*.
, What is Liability risk? - ✔✔a risk that relates to harm or injury to other people or
their property because of your actions.
What are the types of Personal Risk: - ✔✔Loss of income
Unemployment
Disability
Death
Divorce
Catastrophic Losses
Negligence
What are the four components to negligence that an injured person must prove to
collect damages from the person he believes is responsible: - ✔✔1. existence of a
legal duty
2. failure to perform a legal duty
3.actual damage is caused
4. proximate cause is established.
PROPERTY INSURANCE QUESTIONS
WITH 100% CORRECT ANSWERS {
GRADED A+}
What is on the hierarchy of financial goals? Least significant to Most significant -
✔✔1. Travel
2. Business Ownership, Vacation home
3. College funding, Retirement planning, Mortgage payoff
4. Food/Shelter I Emergency Fund, Insurance coverage
What are the 5 steps of the risk management process?
- ✔✔1. Clarify objectives: What are the goals of the individual or business as it
relates to managing risk?
,2. Identify the risk: What is the risk that will prohibit the individual or business
from meeting the objectives?
3. Measure the risk: What is the magnitude of the risk that has been identified?
4. Manage the risk: How will the risk be controlled or financed?
5. Monitor the risk and its management: The risk and subsequent management
method should be reviewed on a regular basis as appropriate based on the level of
risk and the probability of its occurrence.
What is insurance management? - ✔✔The process of deciding how much and
what kind of insurance to buy.
What is risk management? - ✔✔A decision making process designed to
*identify* hazards systematically,
*assess* the degree of risk,
and determine the *best course of action*.
, What is Liability risk? - ✔✔a risk that relates to harm or injury to other people or
their property because of your actions.
What are the types of Personal Risk: - ✔✔Loss of income
Unemployment
Disability
Death
Divorce
Catastrophic Losses
Negligence
What are the four components to negligence that an injured person must prove to
collect damages from the person he believes is responsible: - ✔✔1. existence of a
legal duty
2. failure to perform a legal duty
3.actual damage is caused
4. proximate cause is established.
