Test your knowledge

Choose wisely. There is only one correct answer to each question.

Keep studying!

Get a certificate for this quiz
Enter your name and email address below and we will generate a certificate for this quiz.

Review your answers below to learn more.

Which of the following is false?

Choose wisely. There is only one correct answer.

An insurance policy is a legal contract.

In risk management, you should only buy insurance to cover amounts "at risk."

You can save money by buying only benefits and riders you need.

You should always insure property against loss.

You should always insure property against loss. You should only insure property for losses you cannot afford.

Anything _______ that has an adverse effect on your financial goals is financial risk.

Choose wisely. There is only one correct answer.

Expected

Unexpected

Expected or unexpected

Unexpected. Financial risk involves events that are unexpected.

Premiums for insurance are based partly upon the likelihood of a negative event occurring.

Choose wisely. There is only one correct answer.

True

False

True. That likelihood, as well as other factors such as the amount of benefits to be paid, determine the premiums you must pay for the insurance.

The more risk you transfer to an insurance company, the _______ your premiums will be.

Choose wisely. There is only one correct answer.

Lower

Higher

Higher. Premiums will rise to compensate the insurance company for taking on your risk.

If you take out a loan and then lose your job shortly afterward, what form of insurance would protect you financially if you default on your loan?

Choose wisely. There is only one correct answer.

Homeowner's insurance

Credit insurance

Unemployment insurance

Liability insurance

Credit insurance. Credit insurance is made for scenarios like this.

© Copyright 2024 Precision Information, publisher of the Financial Fitness Group family of products. The trade name Financial Fitness Group and the trademarks Financial Fitness CENTER™, Financial Fitness CHECKUP™ and Financial Fitness ACADEMY™ are exclusive marks of Precision Information, LLC. All rights reserved.