Personal Finance 6

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Lesson 1 (3.0 points) 1. What is a pure risk? (0.5 points) Pure risk is a risk of something negative happening with no possibility for profit or gain. 2. Why do people take speculative risks? (0.5 points) People take speculative risks because you have a possibility of profit or gain. 3. What is meeting the deductible? (0.5 points) Meeting the deductible is when you have paid the deductible amount and the insurance company now has to pay some or all of the costs above the amount. 4. What does health insurance help to pay for? (0.5 points) Health insurance helps pay for your medical bills and expenses. 5. What is COBRA? (0.5 points) COBRA is a federal government act that allows employs who lose their health benefits the right to continue participating in the insurance for a specific amount of time. 6. What is an insurance claim? (0.5 points) An insurance claim is an application or request sent to your insurance company, so you can receive your benefits. 1. Name at least two types of disability insurance. (1.0 points) Two types of disability insurance include Workers’ Compensation and Government Benefits. 2. What is life insurance? (0.5 points) Life insurance is a type of insurance that protects your family against the negative financial impact that would be caused by your death. 3. Which tax provides federal funding for unemployment insurance? (0.5 points) The Federal Unemployment Tax Act provides federal funding for unemployment insurance. 4. What is liability insurance? (0.5 points) Liability insurance 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) Property insurance covers property that you own or rent such as home, apartment, and items inside your property. 1. What is identity theft? (0.5 points) Identity theft is when a

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