TRUE / FALSE. Protection against possible financial loss is referred to as insurance.

a) True

b) False

A risk sharing firm that assumes financial responsibility for losses that may result from an insured risk is called a insurance company.

a) True

b) False

Risk, peril, and hazard are not the same thing.

a) True

b) False

A claim is a request for payment to cover a financial gain.

a) True

b) False

Vehicle insurance premiums are based on all of the following factors, except:

a) net worth

b) vehicle type

c) rating territory

d) driver classification