Personal Finance - Insurance
Bodily injury liability coverage provides coverage in which scenario? A. The insured driver causes an accident where another person is injured B. The insured driver causes an accident where another's property is damaged C. The insured driver is a victim of an accident and needs to replace their own car D. The insured driver is a victim of an accident and needs to pay their own medical bills
A
Each of the following describes a type of health insurance plan EXCEPT... A. Copay B. High deductible health plan C. HMO D. Platinum plan
A
What is a premium? A. The amount you pay to buy an insurance policy B. A specified amount of money that the insured must pay before an insurance company will pay a claim C. An arrangement by which a company provides a guarantee of compensation for a specified loss D. Measures that are taken for disease prevention
A
What is the liability portion of a homeowners insurance policy meant to cover? A. The cost of a lawsuit if someone sues you for injuries they got on your property B. The cost of repairing the physical structure of your home C. The cost of floods and earthquakes not covered by a standard policy D. The cost of replacing personal property that you, yourself, damage within your home
A
What role does math play in the insurance industry? A. Insurance companies use statistics to find how likely a client will need to use the insurance so they can set premiums in order to have the highest chance of making a profit B. Insurance companies use algebra and geometry to calculate the distance from clients' major emergencies to nearest hospitals C. Insurance companies use statistics to hypothesize how likely clients are to switch over to competitive companies D. Insurance companies use calculus to find out how likely a client will need to use the insurance so they can set premiums in order to have the highest chance of making a profit
A
Which answer uses the terms premium, deductible, and out-of-pocket maximum correctly? A. You pay a monthly premium for your health insurance. You pay for health services until you meet your deductible. Once you meet your out-of-pocket maximum, your insurance pays the rest of your health care costs for that year. B. You pay a monthly deductible for your health insurance. You and your health insurance company share health care costs by paying separate premium costs. Once you meet your out-of-pocket maximum, your insurance company pays your health care costs except for your copays. C. You pay a monthly premium for your health insurance. Your insurance will cover a specific percentage of your health insurance costs up to an out-of-pocket maximum. Once you have reached your maximum limit, your only out-of-pocket expense is your deductible.
A
The coverage under renters insurance will cover the costs of the following items EXCEPT: A. Your personal belongings B. The damage to the building C. Hotel you have to stay at until your apartment can be repaired D. Small alterations to the property you made at your own expense
B
The purpose of insurance is to... A. build wealth B. transfer risk C. manage assets D. build relationships
B
There is no need for a college student to have a renters insurance policy. A. TRUE B. FALSE
B
What does it mean if a person chooses to enroll in employer-sponsored health insurance? A. Their employer will select a specific health care plan the employee can access, and the employer will have to pay all of the costs B. Their employer will offer a specific plan or plans the employee can access, and the employer will pay at least half of the cost C. Their employer must offer an on-site doctor's office at the workplace and will cover full costs of coverage at that location D. Their employer will sign them up for an appropriate plan on the federal Marketplace
B
What is the difference between a term life insurance policy and a permanent life insurance policy? A. Term is for younger individuals, while permanent is for older individuals B. Term pays a benefit only if you die within the predetermined time frame, while permanent pays a benefit regardless of when you die C. Term lasts as long as you are still working, while permanent lasts in retirement as well D. Term is bought as a private policy, while permanent is provided through your employer
B
Why is it important for insurance companies to have a large risk pool of people paying premiums? A. If a large pool of people pay premiums, insurance company employees will get more bonuses included in their next paycheck B. The premium payments of all the insured clients will cover the costs for the emergencies of the few who need it C. The more people that pay premiums, the more careful each insured client becomes with their lifestyle choices D. A large pool of people paying premiums allows insurance companies to have a larger social media following
B
Why is it important to have health insurance? A. In most states, you cannot see a doctor if you do not have health insurance B. You never know when an unexpected illness or injury is going to require expensive care C. You are fined money by the federal government for not having health insurance D. If you buy health insurance, you do not have to buy auto insurance, so it actually saves you money
B
Why is risk pooling essential for the insurance industry to exist? A. Risk pooling eliminates everyone who files expensive claims and makes them uninsurable B. Risk pooling creates large groups to spread the risk level out while maximizing the amount of premiums that can be collected C. Risk pooling provides every insured person with a monthly check, called a premium, so they can pay whatever bills they need D. Risk pooling is a low-cost way for everyone to save their premiums in a saving account to use later
B
Why would someone want to have renters insurance if their building owner has insurance? A. The building owner's insurance only covers liability. Renters insurance will cover damage to the exterior and structure of the building. B. The building owner's insurance only covers the building structure. Renters insurance covers your personal property. C. There is no need to get renters insurance if the building owner already has an insurance policy D. By law, you must have two types of insurance: landlord insurance and renters insurance
B
If you drive a fancy car a lot of miles each month, your premiums will likely be... A. Lower than expected compared to another driver with the same driving record but a cheaper car B. The same as for another driver with the same driving record but a cheaper car C. Higher than expected compared to another driver with the same driving record but a cheaper car D. Unchanged, because all drivers pay the exact same premium based on federal law
C
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? A. Karishma pays $0, while the insurance company pays $500 B. Karishma pays $0, while the insurance company pays $9,000 C. Karishma pays $500, while the insurance company pays $8,500 D. Karishma pays $500, while the insurance company pays $24,500
C
What is the purpose of liability coverage on a renters insurance policy? A. It covers only damage to the exterior of the rental unit B. It covers your medical bills if you are injured on the property C. It covers unintended damage and accidents in the rental D. Liability coverage is not available on a renters insurance policy, only on a landlord policy
C
Which of the following is the LEAST LIKELY health insurance plan for a 15-year-old child to be enrolled in? A. CHIP B. Medicaid C. Medicare D. Their parent's employer-sponsored plan
C
Who typically pays for health care expenses once you have met your deductible? A. You pay for all health care expenses B. Your insurance pays for all health care expenses C. You and your insurance company share the cost of health care expenses D. No one pays; once you meet your deductible, your health care expenses are free
C
Each of the following is an advantage of signing up for an individual health insurance plan on the marketplace EXCEPT... A. Freedom to choose the plan that works best for you and your family B. Guaranteed coverage of 10 essential benefits C. Ability to add your dependent family members at additional cost D. Guaranteed pricing below that of an employer-sponsored health plan
D
If you buy pet insurance for your dog, how does the cost sharing work between you and the insurance company? A. You pay nothing B. You pay premiums only, and insurance pays the rest C. You pay premiums and deductible, and insurance pays the rest D. You pay premiums, deductible, and partial costs for services, and insurance pays partial costs for services
D
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... A. Uninsured/underinsured motorist B. Collision C. Comprehensive D. Liability
D
What expenses do disability benefit payments cover? A. The cost of treating the specific illness or injury B. Any health bills that occur after you file a valid claim C. Payments to your employer to compensate them while you cannot work D. Income replacement for you because you are unable to work and earn income
D
Which college student is MOST likely to need their own renters insurance policy? A. Abigail, who lives with her parents and commutes to college B. Beatrice, who is a freshman living in a dorm and whose mom has homeowners insurance C. Carson, who is a senior living in a dorm and whose guardians have homeowners insurance D. Dani, who lives in an off-campus apartment with her cousin and a friend
D
federal and state program with health coverage for those with limited income
Medicaid
federal health insurance for those 65+
Medicare
What is meant by the "waiting period" when signing up for pet insurance?
The period you have to wait between buying your insurance and being able to use it/file a claim
Does the annual limit for pet insurance work more like the annual limit for auto insurance or like the out-of-pocket max for human health insurance?
auto insurance
What factors impact the cost of your life insurance premium?
Age, location, occupation, hobbies, health, medical history
How is a deductible different from an out-of-pocket maximum? A. A deductible is paid monthly, while an out-of-pocket max is paid only if you see a doctor B. A deductible is paid by the insured person, while an out-of-pocket max is paid by the insurance company C. 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 D. A deductible is used for doctor's visits, while the out-of-pocket max is used for hospital visits
C
Piper is willing to pay a high premium for their disability insurance. What are the likely outcomes of paying that higher premium? A. They receive a low deductible and a low monthly payment B. They receive a low deductible and a low coverage limit C. They receive a low deductible and a high coverage limit D. They receive a low deductible and a high risk assessment
C
What happens when you have reached your health care deductible and out-of-pocket maximum? A. You will continue to pay 100% of your healthcare costs out-of-pocket B. You will pay 50% of your healthcare costs out-of-pocket, which includes co-pays C. The insurance company pays all covered costs for the rest of the year, with no annual limit D. The insurance company pays for all covered costs for the rest of your life
C
covers children whose families earn too much to qualify for Medicaid but not enough to afford private insurance
CHIP
Each of these coverage areas is part of a standard renters insurance policy EXCEPT for... A. Loss of use B. Personal Property C. Liability D. Dwelling
D
Type of pet insurance? - Marsha's dog seems lethargic, hasn't been playing as much as normal, and only eats about half its food its food (accident only, accident and illness, wellness)
accident and illness
Type of pet insurance? - Dennis's cat gets run into by a teenager riding a skateboard, and her paw is all torn up. (accident only, accident and illness, wellness)
accident only
Does the deductible for pet insurance work more like the deductible for auto insurance or like the deductible for human health insurance?
human health insurance
Type of pet insurance? - Colin brings his cat in for a check-up to make sure her ears and teeth are clean (accident only, accident and illness, wellness)
wellness insurance
