Insurance - JSS2 Business studies Past Questions and Answers - page 1
What is insurance?
A method to save money for future expenses
A way to protect against financial loss from unexpected events
A type of investment in the stock market
Which insurance type provides coverage for medical expenses?
Auto Insurance
Home Insurance
Health Insurance
Life Insurance
What does a premium refer to in insurance?
The total amount of coverage provided by the policy
The monthly payment made by the insured to the insurance company
The percentage of the claim paid by the insured
Which insurance type offers lifelong coverage and includes a savings component? a
Term Life Insurance
Whole Life Insurance
Health Maintenance Organization (HMO)
What is the primary purpose of insurance?
To make a profit for insurance companies
To provide financial protection against unexpected events
To encourage risky behavior
Which type of insurance protects your home and personal belongings against damage or loss from covered perils?
Health Insurance
Auto Insurance
Homeowner's Insurance
What does a Health Maintenance Organization (HMO) typically require?
Choosing a primary care physician and getting referrals for specialist care
Paying a fixed monthly premium regardless of healthcare usage
Providing coverage for a specific period, such as 10, 20, or 30 years
Offering flexibility in choosing healthcare providers
What benefit does insurance provide in terms of risk management?
Eliminates all risks completely
Transfers the financial burden of potential losses to an insurance company
Increases the likelihood of accidents and disasters
Which insurance type is typically mandatory in most states to legally drive a car?
Home Insurance
Health Insurance
Life Insurance
What does Whole Life Insurance include besides lifelong coverage?
A requirement for a specific term of coverage
A savings component known as cash value
Coverage only for a specific event or illness
No premiums to be paid
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