personal finance
Section 6 Study Questions (9.0 points) Answer each question fully. Complete sentences are not necessary. Lesson 1 (3.0 points)
1. What is a pure risk? (0.5 points)
A risk of something negative happening, with no possibility of profit or gain.
2. Why do people take speculative risks? (0.5 points)
Some people want to make money like in the stock market that’s a speculative risk because you never know when the stock market will go up or down.
3. What is meeting the deductible? (0.5 points)
When you have paid the deductible amount and the insurance company has to pay some/ the rest of the costs above that amount.
4. What does health insurance help to pay for? (0.5 points)
Health insurance helps pay for doctors, dentists, eye doctors, etc.
5. What is COBRA? (0.5 points)
A federal government act that allows employees who lose their health insurance to continue participating in the insurance plan for a specific amount of time.
6. What is an insurance claim? (0.5 points)
Employee of an insurance company who is responsible for verifying insurance claims.
Lesson 2 (3.0 points)
1. Name at least two types of disability insurance. (1.0 points)
Workers' compensation, Veterans' benefits
2. What is life insurance? (0.5 points) Insurance that protects your family against the negative financial impact, caused by your death 3. Which tax provides federal funding for unemployment insurance? (0.5 points)
Federal Unemployment Tax Act (FUTA)
4. What is liability insurance? (0.5 points)
Insurance that protects you by helping to cover costs that are caused by events you're responsible for.
5. What does property insurance cover? (0.5 points)
Insurance that covers property you own or rent, such as a home or apartment, and the items inside the property.
Lesson 3 (3.0 points)
1. What is identity theft? (0.5 points) Identity theft is a form of stealing someone's
1. What is a pure risk? (0.5 points)
A risk of something negative happening, with no possibility of profit or gain.
2. Why do people take speculative risks? (0.5 points)
Some people want to make money like in the stock market that’s a speculative risk because you never know when the stock market will go up or down.
3. What is meeting the deductible? (0.5 points)
When you have paid the deductible amount and the insurance company has to pay some/ the rest of the costs above that amount.
4. What does health insurance help to pay for? (0.5 points)
Health insurance helps pay for doctors, dentists, eye doctors, etc.
5. What is COBRA? (0.5 points)
A federal government act that allows employees who lose their health insurance to continue participating in the insurance plan for a specific amount of time.
6. What is an insurance claim? (0.5 points)
Employee of an insurance company who is responsible for verifying insurance claims.
Lesson 2 (3.0 points)
1. Name at least two types of disability insurance. (1.0 points)
Workers' compensation, Veterans' benefits
2. What is life insurance? (0.5 points) Insurance that protects your family against the negative financial impact, caused by your death 3. Which tax provides federal funding for unemployment insurance? (0.5 points)
Federal Unemployment Tax Act (FUTA)
4. What is liability insurance? (0.5 points)
Insurance that protects you by helping to cover costs that are caused by events you're responsible for.
5. What does property insurance cover? (0.5 points)
Insurance that covers property you own or rent, such as a home or apartment, and the items inside the property.
Lesson 3 (3.0 points)
1. What is identity theft? (0.5 points) Identity theft is a form of stealing someone's