Insurance Test
Most financial advisers will tell you that the average person should carry ____ times their annual income
10
a person is eligible to stay on their parent's health insurance plan until the age of
26
the minimum age to be eligible for funeral insurance is typically
50
At what is the first age you can start taking full social security benefits?
65
When you get into a wreck, what part of your auto insurance covers injury to someone in the other car?
Bodily Injury Liability
Four Mandatory Auto Insurance Coverages
Bodily Injury Liability 20/40 Property Damage Liability 5,000 Personal Injury Protection 8,000 Uninsured/Underinsured Motorist Protection 20/40
Difference between cash value and replacement cost
Cash value is what the item is worth now Replacement value is what it costs to buy the item new.
Damage caused by your pets is NOT covered under your homeowners liability protect
False
Flood and earthquake coverage are normally included as a part of standard home owners insurance policy
False
you always want the lowest possible deductible because it means you will pay less out of pocket in case of a loss
False
Which of the following could cause your premiums to increase?
Moving to a bigger city
What does workers compensation cover?
Personal injuries of employees Accident/Occupational Illness Arising out of course of employment
Which of the following is not a type of insurance
Pet
If your MP3 player is stolen from your apartment, what type of insurance would it be covered under?
Renter's
What is the best resource to check with to be sure an insurance company is legitimate and license to sell insurance in your state?
State dept
Which of the following does NOT affect your car insurance rate?
The type of job you have
A deductible is the first amount YOU will pay in the event of a claim
True
Term life is cheaper monthly than whole life insurance
True
Using your vehicle for weekly recreation and not for daily commute may lower your auto premium
True
You cannot be denied auto insurance in Massachusetts
True
a burglar broke into you home and stole your grandmothers old photo albums. Which is true
Your policy will not cover them
A formal request made by the insurance policy holder to the insurance company for payment or services covered by the insurance policy
claim
a set dollar amount you agree to pay each time you receive medical treatment, while the insurance company agrees to cover the rest
co-pay
the amount you must pay before the insurance company will pay
co-pay
Auto insurance that protects you against cost to repair your own vehicle after a crash
collision
an insurance policy that provides complete protection
comprehensive
the risks covered and amount of money paid for the loss
coverage
reimburses you for unexpected losses or damages caused by a specific set of hazards to a specific thing for a fee which is a fraction of the potential payout
deductible
Disability insurance protects your
income
licensed representative who handles the purchase of insurance between the customer and the insurance company
insurance agent
an act on the part of either the buyer or the seller of an insurance contract in an attempt to gain money illegally
insurance fraud
what is not a reason to buy life insurance
invest in the stock market
death, injury, or damage that is the basis for a claim
loss
a contract you have with an insurance company
policy
the person to whom an insurance policy is issued
policy holder
a payment made monthly, twice a year, or yearly for an insurance policy
premium
chance or possibility of injury, damage, or loss
risk
You are in a car accident and the damages will cost $800. If you have a $200 deductible how much does your insurance pay?
you pay 200, they pay 600
