Section 8: Personal Finance Exit Tickets

How is a deductible different from an out-of-pocket maximum? 1. A deductible is paid monthly, while an out-of-pocket max is paid only if you see a doctor 2. A deductible is paid by the insured person, while an out-of-pocket max is paid by the insurance company 3. A deductible is the minimum the insured person pays before insurance kicks in, while the out-of-pocket max is the most the insured person pays for care 4. A deductible is used for doctor's visits, while the out-of-pocket max is used for hospital visits

A deductible is the minimum the insured person pays before insurance kicks in, while the out-of-pocket max is the most the insured person pays for care

Each of the following describes a type of health insurance plan EXCEPT... 1. Copay 2. High deductible health plan 3. HMO 4. Platinum plan

Copay

Which college student is MOST likely to need their own renters insurance policy? 1. Abigail, who lives with her parents and commutes to college 2. Beatrice, who is a freshman living in a dorm and whose mom has homeowners insurance 3. Carson, who is a senior living in a dorm and whose guardians have homeowners insurance 4. Dani, who lives in an off-campus apartment with her cousin and a friend

Dani, who lives in an off-campus apartment with her cousin and a friend

Each of these coverage areas is part of a standard renters insurance policy EXCEPT for... 1. Loss of use 2. Personal Property 3. Liability 4. Dwelling

Dwelling

Each of the following is an advantage of signing up for an individual health insurance plan on the marketplace EXCEPT... 1. Freedom to choose the plan that works best for you and your family 2. Guaranteed coverage of 10 essential benefits 3. Ability to add your dependent family members at additional cost 4. Guaranteed pricing below that of an employer-sponsored health plan

Guaranteed pricing below that of an employer-sponsored health plan

If you drive a fancy car a lot of miles each month, your premiums will likely be... 1. Lower than expected compared to another driver with the same driving record but a cheaper car 2. The same as for another driver with the same driving record but a cheaper car 3. Higher than expected compared to another driver with the same driving record but a cheaper car 4. Unchanged, because all drivers pay the exact same premium based on federal law

Higher than expected compared to another driver with the same driving record but a cheaper car

What expenses do disability benefit payments cover? 1. The cost of treating the specific illness or injury 2. Any health bills that occur after you file a valid claim 3. Payments to your employer to compensate them while you cannot work 4. Income replacement for you because you are unable to work and earn income

Income replacement for you because you are unable to work and earn income

Karishma has a renters insurance policy with a coverage limit of $25,000. While she's on vacation a fire breaks out, ruining $9,000 worth of possessions before the fire department puts it out. Her deductible is $500. How much will Karishma and the insurance company each pay? 1. Karishma pays $0, while the insurance company pays $500 2. Karishma pays $0, while the insurance company pays $9,000 3. Karishma pays $500, while the insurance company pays $8,500 4. Karishma pays $500, while the insurance company pays $24,500

Karishma pays $500, while the insurance company pays $8,500

Ralph has a shiny new car, and he wants to make sure the insurance company will help him fix or replace it in case of any type of damage. Each of these coverage areas will provide the type of coverage he's looking for on his car EXCEPT... 1. Uninsured/underinsured motorist 2. Collision 3. Comprehensive 4. Liability

Liability

Which of the following is the LEAST LIKELY health insurance plan for a 15-year-old child to be enrolled in? 1. CHIP 2. Medicaid 3. Medicare 4. Their parent's employer-sponsored plan

Medicare

Why is risk pooling essential for the insurance industry to exist? 1. Risk pooling eliminates everyone who files expensive claims and makes them uninsurable 2. Risk pooling creates large groups to spread the risk level out while maximizing the amount of premiums that can be collected 3. Risk pooling provides every insured person with a monthly check, called a premium, so they can pay whatever bills they need 4. Risk pooling is a low-cost way for everyone to save their premiums in a saving account to use later

Risk pooling creates large groups to spread the risk level out while maximizing the amount of premiums that can be collected

What is the difference between a term life insurance policy and a permanent life insurance policy? 1. Term is for younger individuals, while permanent is for older individuals 2. Term pays a benefit only if you die within the predetermined time frame, while permanent pays a benefit regardless of when you die 3. Term lasts as long as you are still working, while permanent lasts in retirement as well 4. Term is bought as a private policy, while permanent is provided through your employer

Term pays a benefit only if you die within the predetermined time frame, while permanent pays a benefit regardless of when you die

What is the liability portion of a homeowners insurance policy meant to cover? 1. The cost of a lawsuit if someone sues you for injuries they got on your property 2. The cost of repairing the physical structure of your home 3. The cost of floods and earthquakes not covered by a standard policy 4. The cost of replacing personal property that you, yourself, damage within your home

The cost of a lawsuit if someone sues you for injuries they got on your property

Bodily injury liability coverage provides coverage in which scenario? 1. The insured driver causes an accident where another person is injured 2. The insured driver causes an accident where another's property is damaged 3. The insured driver is a victim of an accident and needs to replace their own car 4. The insured driver is a victim of an accident and needs to pay their own medical bills

The insured driver causes an accident where another person is injured

What does it mean if a person chooses to enroll in employer-sponsored health insurance? 1. Their employer will select a specific health care plan the employee can access, and the employer will have to pay all of the costs 2. Their employer will offer a specific plan or plans the employee can access, and the employer will pay at least half of the cost 3. Their employer must offer an on-site doctor's office at the workplace and will cover full costs of coverage at that location 4. Their employer will sign them up for an appropriate plan on the federal Marketplace

Their employer will offer a specific plan or plans the employee can access, and the employer will pay at least half of the cost

Piper is willing to pay a high premium for their disability insurance. What are the likely outcomes of paying that higher premium? 1. They receive a low deductible and a low monthly payment 2. They receive a low deductible and a low coverage limit 3. They receive a low deductible and a high coverage limit 4. They receive a low deductible and a high risk assessment

They receive a low deductible and a high coverage limit

Why is it important to have health insurance? 1. In most states, you cannot see a doctor if you do not have health insurance 2. You never know when an unexpected illness or injury is going to require expensive care 3. You are fined money by the federal government for not having health insurance 4. If you buy health insurance, you do not have to buy auto insurance, so it actually saves you money

You never know when an unexpected illness or injury is going to require expensive care

If you buy pet insurance for your dog, how does the cost sharing work between you and the insurance company? 1. You pay nothing 2. You pay premiums only, and insurance pays the rest 3. You pay premiums and deductible, and insurance pays the rest 4. You pay premiums, deductible, and partial costs for services, and insurance pays partial costs for services

You pay premiums, deductible, and partial costs for services, and insurance pays partial costs for services