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
