Name Period

Test: Risk Management (Insurance) KEY

What insurance would help Albert in the following situations?

Word Bank
Automobile Insurance, Bodily Injury Liability / Disability Insurance
Automobile Insurance, Collision / Health Insurance
Automobile Insurance, Comprehensive / Homeowners Insurance
Automobile Insurance, Medical Payments / Homeowners: Condominium Owner's insurance
Automobile Insurance, Property Damage Liability / Homeowners: Renters Insurance
Automobile Insurance, Uninsured Motorist / Life Insurance
Not Covered
Situations
Situation / Insurance / Who's insurance pays the claim?
A friend fell in Albert’s apartment and broke an arm. / Homeowners: Renters Insurance / Albert
A riot broke out outside Albert's house and it was damaged. / Homeowners Insurance / Albert
A tree fell on Albert's roof and caused it to need repair. / Homeowners Insurance / Albert
Albert drove into a telephone pole. His car needs to be repaired. / Automobile Insurance, Collision / Albert
Albert drove into a telephone pole. The telephone pole needs to be replaced. / Automobile Insurance, Property Damage Liability / Albert
Albert has an annual physical exam. / Health Insurance / Albert
Albert has cosmetic surgery to improve his looks. / Not Covered
Albert hits a deer and damages his car. / Automobile Insurance, Comprehensive / Albert
Albert hits and injured a pedestrian in a crosswalk. / Automobile Insurance, Bodily Injury Liability / Albert
Albert is in an accident that is his fault, and damage another car. / Automobile Insurance, Property Damage Liability / Albert
Albert is in an accident that is his fault, he and a passenger in his car were injured. / Automobile Insurance, Medical Payments / Albert
Albert is in an accident that is his fault, passengers in the other car were injured. / Automobile Insurance, Bodily Injury Liability / Albert
Albert is in an accident that is his fault. His car needs to be repaired. / Automobile Insurance, Collision / Albert
Albert is in an accident that was the fault of another driver. Albert's car needs to be repaired. / Automobile Insurance, Property Damage Liability / Other Driver
Albert is sick and need to see a doctor. / Health Insurance / Albert
Albert suffered an injury that prevented him from working for several months. What insurance would help supplement his income? / Disability Insurance / Albert
Albert was injured in an auto accident that was the fault of an uninsured driver. Albert was injured and his car needed to be repaired / Automobile Insurance, Uninsured Motorist / Albert
Albert was injured in an auto accident that was the fault of another driver. / Automobile Insurance, Bodily Injury Liability / Other Driver
Albert’s brother broke his stereo / Not covered
Albert’s apartment was broken into and many of his belongings were stolen. / Homeowners: Renters Insurance / Albert
Albert’s breaks are grinding, so they need to be fixed. / Not Covered
Albert’s car is stolen / Automobile Insurance, Comprehensive / Albert
Albert’s condominium was broken into and many of his belongings were stolen. / Homeowners: Condominium Owner's insurance / Albert
Albert’s cousin, who is the father of a young child, dies in an accident. / Life Insurance / Albert's cousin
Albert’s passenger was injured in an auto accident that was the fault of another driver. / Automobile Insurance, Bodily Injury Liability / Other Driver
Albert's car was outside during a hail store and needed to be repaired / Automobile Insurance, Comprehensive / Albert
Lightning struck Albert's house and caused his computer to need repair / Homeowners Insurance / Albert
Someone broke their leg while walking through Albert’s yard. / Homeowners Insurance / Albert
The 24-hour flu causes Albert to stay home from work for one day without pay. / Not covered
While Albert’s family is away on vacation, the power goes out for four days. Because there was no heat, the pipes froze and burst. This caused water damage throughout the house. / Homeowners Insurance / Albert

When is each insurance needed?

Insurance / When
Automobile Insurance, Bodily Injury Liability / Get a driver’s license
Automobile Insurance, Collision / Start driving and have a car worth repairing
Automobile Insurance, Comprehensive / Start driving and have a car worth repairing
Automobile Insurance, Medical Payments / Get a driver’s license
Automobile Insurance, Property Damage Liability / Get a driver’s license
Automobile Insurance, Uninsured Motorist Insurance / Get a driver’s license
Disability Insurance / When your dependent on your income
Health Insurance / Always--(on parent's until age 26)
Homeowners Insurance / When own a house
Homeowners: Condominium Owner's insurance / When own a condo
Homeowners: Renters Insurance / When renting an apartment
Life Insurance / When someone else is dependent on your income

List four ways you can lower your premiums:

Homeowners Insurance / Auto Insurance / Life Insurance
brick house / cheap car to repair / Pass physical
good neighborhood / Good driving record / Not overweight
few claims / few claims / Pass drug test
alarm system / good grades / Don’t drink or smoke
Higher deductible / Higher deductible
True/False

If an insurance claim is $200 over your deductible, you should not make the claim. Making claims can increase your premium.

TRUE