Module 13

If automobile insurance has the split limits 100/200/50, the maximum amount the insurance company will pay per accident is...

$200,000

Since 2009, the average deductible for health insurance policies has increased by...

150%

Homeowners' insurance covers which of the following?

ALL OF THESE a. Home repair for covered damages b. Rebuilding a house destroyed by covered events c. Liability for injuries to visitors to the covered home d. Replacement of possession in homes lost due to covered events

Homeowners' insurance coverage can include which of the following?

ALL OF THESE a. Loss of use b. Personal property c. Liability d. Property damage

Which of the following is a benefit of insurance?

ALL OF THESE a. Peace of mind b. Protecting assets c. Being a responsible citizen d. Preventing burdens on family

Automobile insurance can cover which of the following types of losses?

ALL OF THESE a. Property damage b. Medical expenses c. Damage to cars d. Bodily injury

Which of the following increases the need for a person to purchase life insurance?

Dependents

True or false If an insurance policy has a $500 deductible, then the insurance company will pay a maximum of $500 for any claim.

False

True or false: A lower deductible will reduce the premium for homeowners' insurance.

False

True or false: Healthcare costs decreased during the 2010s.

False

True or false: Term life insurance has an indefinite time limit.

False

True or false: The cost of life insurance includes the insured's peace of mind that their loved ones will be taken care of in the future.

False

The price paid for an insurance policy is called an insurance...

Premium

True or false The car owner is responsible for damage to another car when their friend is driving the car.

True

True or false: A homeowner who fails to take proper care resulting in an injury to a visitor is negligent.

True

True or false: Deductibles are a cost of insurance.

True

True or false: HMOs (Health Maintenance Organizations) have lower costs but less flexibility than other types of health insurance plans.

True

True or false: Other investments generally earn a higher return than permanent life insurance.

True

True or false: The premium for a homeowners' insurance policy might be higher for a house that is far away from a fire department.

True

True or false: Virginia requires car owners to carry automobile liability insurance.

True

True or false: You can be required to sign a release for an insurance company to review your medical records when you purchase life insurance.

True

True or false: You should always file an insurance claim if someone was injured at the scene of an accident.

True

The type of life insurance that provides what is often referred to as "death benefit protection," or what many people would call "ordinary" life insurance, is called _____ life insurance.

Whole

When sicker people buy more insurance than healthier people, it is known as...

adverse selection.