Personal Risk Management Process
The systematic process of identifying, evaluating, and managing pure risk exposures faced by an individual
What is "Personal Risk Management"?
The definition of risk
What is "chance of loss"?
Human Life Value, Financial Needs, and Capitalization of Earnings
What are ways to determine how much life insurance is needed?
March 23, 2010
What date was the Affordable Care Act signed into law?
Flood and earth movement
What are perils not typically covered by a homeowners insurance policy?
The 5th step in the personal risk management process
What is "Selecting the most appropriate alternative for each risk"?
The definition of peril
What is "the proximate or actual cause of a loss"?
Stated for a specified period of time
What is "term life insurance"?
One provides access to a network of providers while the other charges a fee-for-service.
What are "Health Maintenance Organizations (HMOs)" and "Preferred Provider Organization (PPOs)", respectively?
Most homeowners should get a policy that covers open perils at this value for their properties
What is "replacement cost"?
Response to a risk with high severity and high frequency of occurrence
What is "Avoid"?
The definition of hazard
What is "a condition that creates or increases the likelihood of a loss occurring"?
(Gross Income) รท (Riskless Rate of Return)
What is the formula for the "Capitalization of Earnings Method"?
Coverage in this low-cost plan starts after the client pays out a significant portion of the bill up front
What is a "High Deductible Health Plan (HDHP)"?
Provides excess coverage and legal defense
What is a "Personal Liability Umbrella Policy (PLUP)"?
The four responses to managing risk
What are "Risk Avoidance", "Risk Reduction", "Risk Retention", and "Risk Transfer"?
The three main types of hazards
What are "Physical", "Moral", and "Morale "?
Typical required amount of life insurance according to the book
What is 12 to 16 times the client's gross annual pay?
The deductible for someone who can't work
Part D
What is "Damage to your auto" in an automobile insurance policy?
Risk exposures change over time and errors in judgment occur when selecting alternatives
What is "the purpose of periodic evaluation and review"?
What is "pure risk"?
Dave Ramsey's recommended amount of life insurance
What is 10 times the client's gross annual pay?
Activities of daily living
What are: eating, bathing, dressing, toileting, transferring, and continence?
What Uber and Lyft drivers should be concerned about prior to taking working as a driver
What is the exclusion for liability for public livery?