Financial Planning Courses: Insurance and Risk Management

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1.
To find out what is not covered under an insurance policy, you should consult the exclusions section.
Choose wisely. There is only one correct answer.
True. The exclusions section lists what the policy will not cover.
2.
Which of these actions are a good reason to have additional insurance coverage?
Choose wisely. There is only one correct answer.
Living near a river that floods every year. Floods are high risk, so they justify paying for more insurance coverage.
3.
It is possible to determine the mathematical probability of risk occurring and the financial risk at stake.
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True. This is what insurance actuaries do. The results of their calculations are factored into the premiums you pay.
4.
Liability insurance would cover a situation where another person sued you.
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True. This is the purpose of liability insurance.
5.
Which of the following is a way to manage risk?
Choose wisely. There is only one correct answer.
All of the above. Risk is all around us, and we manage it by assuming it, avoiding it, sharing it, or transferring it to someone else.