Exam Ch 8-10

Stephanie is the wage earner in a "typical family" with $40,000 gross annual income. Use the easy method to determine how much insurance she should carry.

$196,000

Sally was driving her own car and collided with a pickup truck. Sally sustained $125,000 in injuries, and her passenger sustained $10,000 in injuries. If her coverage was 100/300/50, what are the total medical expenses the insurance company would pay for this accident?

. $110,000

Georgia has a health insurance policy that includes a deductible of $500. If her total bill is $3,000, how much will her insurance pay?

. $2,500

Of the 868 life insurance companies in the United States, about ___ are stock companies.

. 73%

An individual who purchases an insurance policy is called

. A policyholder.

The main goal when setting insurance goals is to

. Minimize personal, property, and liability risks.

The failure to take ordinary or reasonable care to prevent accidents from happening is called Select one:

. Negligence.

The type of health insurance coverage that may cover routine doctor visits, X-rays, and lab tests is

. Physician expense

Which of the following is NOT correct?

. The cost and number of claims you have should not affect your premium.

All of the following are sources of disability income except

All of these are sources of disability income.

Brittany and Brandon are both charged $250 for an office visit to the same specialist. Brittany's reimbursement policy has a deductible of $300. Once she has met the deductible, the policy will cover the full cost of her visits. Brandon's indemnity policy will pay him $150, the maximum amount his plan provides for a visit to any specialist. Which of the following is correct?

Brittany will pay more because she must pay the entire bill since she has not met her deductible while Brandon will have part of his bill paid by his policy.

If you want to purchase term insurance, you will receive all of the following except rev: 12_08_2018_QC_CS-150979

Cash value.

Zachary lived in a neighborhood that was known for gang activity. One day, he noticed that his car had been vandalized. This damage would be covered under his

Comprehensive physical damage coverage.

A provision in a health insurance policy that sets specific levels of repayment for certain services is called

Internal limit.

Which of the following is a government health care program?

Medicare

Fred bought life insurance when he was 47, although he told the insurance company that he was 42. He has since died. Which of the following provisions will affect the amount of money his beneficiaries will receive?

Misstatement of age provision

Barbara left a skateboard on her front steps. A windstorm swept the skateboard up and through her window. The windstorm was a

Peril.

Insurance that covers valuable items, such as an expensive musical instrument, is called Select one:

Personal property floater.

The two basic types of risk that people face regarding potential property losses are

Physical damage and damage caused by criminal behavior.

Which of the following is true about an elimination period?

Premiums for a plan with an elimination period of 90 days will be less than premiums for a plan with an elimination period of 60 days.

Mark was severely injured while on vacation and expects to be unable to work for at least 12 months. Because of his injury, he should expect to be eligible for disability income from

Social Security.

Which of the following is NOT a type of permanent insurance?

Term life

Timothy was driving his friend Nick to football practice. While driving, he was hit by a driver who had coverage of 100/300/50. Tim and Nick each suffered some physical injuries. Based on this information, which of the following is correct?

The policy would provide a maximum of $100,000 for each person who was injured, and no more than $300,000 for total injuries of all parties in the accident.

If you have a multiyear level term policy,

Your premium will be the same for the duration of your policy

An insurance company is a _________ business that agrees to pay for losses that may happen to someone it insures.

risk-sharing.