Business Chapter 20

Dana has auto insurance with 100/300 bodily liability coverage. Five people were injured in an accident for which she was at fault. Each injured person received the same amount of benefits from the insurance company. How much did each person receive?

$60,000

____________________ is the sharing of expenses by the medical policyholder and the insurance company

Coinsurance

Homeowners are able to buy insurance to protect their personal property; renters are not

False

If your car suffers $3,500 damage in an accident and your deductible amount is $500, you will have to pay $3,000 to have your car fixed.

False

Medicaid is a national program of health insurance for people aged 65 and older

False

The broad form of a homeowners policy insures against all perils

False

The longer you keep your permanent life insurance policy, the lower its cash value will be

False

Under an assigned-risk plan, people injured in an auto accident collect for their financial losses from their own insurance companies no matter who caused the accident

False

____________________ laws protect the public from financial loss caused by drivers

Financial responsibility

A financial benefit you receive from another person's continued life

Insurable interest

Many insurance companies will pay the current replacement value of property only if the property is insured for at least 80 percent of the replacement value.

True

Most states require drivers to carry certain types of automobile insurance before they can get a license for their car.

True

Personal liability coverage covers claims from injuries to people or damage to property caused by you or your family

True

The age of the person being insured affects the premiums for life insurance

True

Which of the following factors determine homeowners insurance premiums?

all of the above

The person named in a life insurance policy to receive benefits is the

beneficiary

Type of auto insurance that covers people in other cards, passengers riding with the insured, and pedestrians

bodily injury liability

The amount of money that an insurance company will pay if the policyholder decides the insurance is no longer needed

cash value

Auto insurance that covers property damage

comprehensive coverage

A person who must rely on another for financial support

dependent

The decrease in a property's value due to wear or age

depreciation

The amount of insurance coverage that was originally purchased and that will be paid upon the death of the insured

face value

Regular medical insurance covers

fees for nonsurgical care given in the doctors office

A variable life insurance policy

has no cash value

Which of the following type of health insurance is probably the MOST expensive?

individual health insurance

A list of personal property that you have insured

inventory

Term life insurance is the only form of life insurance that...

is only life insurance

With _____________ term life insurance, the amount of protection and premiums remain the same; with __________________ term insurance, the amount of protection becomes smaller but premiums remain the same

level, decreasing

The causes of loss to property are called

perils

The two main categories of auto insurance are _________________ coverage and _____________________

personal injury, property damage

Property such as furniture or clothing

personal property

Type of auto insurance that protects a driver against claims if the insured's car damages someone else's property and the insured is at fault

property damage liability

Property permanently attached to land, such as a house or garage

real property

This type of homeowners insurance does not deduct depreciation when a damaged item is restored

replacement insurance