STUDENTS SUCCESS
Revision Examination Tests
“Come all for this greatness”
...100% Correct Ans...
AINS 22 - Chapter 8, AINS 22-Chp 11,
What are the three concepts pertinent to understanding insurance?
Ans: Risk, transfer, and pooling.
If Katherine has an insurance policy that covers property damage to her
bicycle shop, how does that affect her budget?
Ans: She has to budget for the insurance premium, but not for the full
cost of rebuilding her shop.
Who benefits from insurance?
Ans: Insurance benefits not only those whose losses it pays, but also
society as a whole.
What is risk?
Ans: Uncertainty about outcomes, which can be negative or positive.
What is transferring?
Ans: The act of transferring the financial consequences of unanticipated
events to an insurer.
What is pooling?
Ans: All insureds share the costs of each other's losses.
What is the purpose of pooling?
ans: To keep premiums affordable and help the insurer cover large
losses when they occur.
What are the benefits of insurance?
, Ans: Paying for losses, managing cash flow, complying with legal
requirements, and promoting risk control activities.
What is personal insurance?
Ans: Insurance that protects individuals and families from financial
losses.
What does property insurance cover?
Ans: Cost of repairing or replacing damaged, lost, or destroyed property.
What does liability insurance cover?
Ans: Payments for injury or damage to others' property for which the
insured is legally responsible.
What does life insurance do?
Ans: Replaces income-earning potential lost through death and helps
pay expenses related to death.
What does health insurance do?
Ans: Protects individuals and families from financial losses caused by
sickness and accidents.
What is personal property-casualty insurance?
Ans: Insurance that provides protection for personal property and
liability coverage.
What does homeowners insurance cover?
Ans: Protection for homes and belongings that are damaged or stolen
and liability coverage.
What does personal auto insurance cover?
ans:Coverage for bodily injury or damage to another person's auto and
damage to the insured auto.
What does personal umbrella insurance do?
ans:Provides additional protection for people with high potential for large
liability losses.
What is commercial insurance?
ans:Insurance that provides business owners with property, crime, and
liability coverages.
What is a commercial package policy?
Revision Examination Tests
“Come all for this greatness”
...100% Correct Ans...
AINS 22 - Chapter 8, AINS 22-Chp 11,
What are the three concepts pertinent to understanding insurance?
Ans: Risk, transfer, and pooling.
If Katherine has an insurance policy that covers property damage to her
bicycle shop, how does that affect her budget?
Ans: She has to budget for the insurance premium, but not for the full
cost of rebuilding her shop.
Who benefits from insurance?
Ans: Insurance benefits not only those whose losses it pays, but also
society as a whole.
What is risk?
Ans: Uncertainty about outcomes, which can be negative or positive.
What is transferring?
Ans: The act of transferring the financial consequences of unanticipated
events to an insurer.
What is pooling?
Ans: All insureds share the costs of each other's losses.
What is the purpose of pooling?
ans: To keep premiums affordable and help the insurer cover large
losses when they occur.
What are the benefits of insurance?
, Ans: Paying for losses, managing cash flow, complying with legal
requirements, and promoting risk control activities.
What is personal insurance?
Ans: Insurance that protects individuals and families from financial
losses.
What does property insurance cover?
Ans: Cost of repairing or replacing damaged, lost, or destroyed property.
What does liability insurance cover?
Ans: Payments for injury or damage to others' property for which the
insured is legally responsible.
What does life insurance do?
Ans: Replaces income-earning potential lost through death and helps
pay expenses related to death.
What does health insurance do?
Ans: Protects individuals and families from financial losses caused by
sickness and accidents.
What is personal property-casualty insurance?
Ans: Insurance that provides protection for personal property and
liability coverage.
What does homeowners insurance cover?
Ans: Protection for homes and belongings that are damaged or stolen
and liability coverage.
What does personal auto insurance cover?
ans:Coverage for bodily injury or damage to another person's auto and
damage to the insured auto.
What does personal umbrella insurance do?
ans:Provides additional protection for people with high potential for large
liability losses.
What is commercial insurance?
ans:Insurance that provides business owners with property, crime, and
liability coverages.
What is a commercial package policy?
