Insurance Quiz
Insurance companies automatically pay for a rental car if you need one while your vehicle is being repaired.
False
Only workers in jobs involving physical labor need disability insurance.
False
When you belong to a Health Maintenance Organization (HMO) you are free to choose any doctor you wish.
False
A floater is a form of insurance that covers specific items wherever you take them.
True
A preexisting condition is an illness or injury a person has before signing up for a health care plan.
True
An umbrella liability insurance policy pays claims when you reach your limit on other liability insurance coverage.
True
Auto insurance coverage provides three basic kins of coverage.
True
Auto insurance premiums are higher for young single males than for most other drivers.
True
Exclusions are the services that are not covered in an insurance plan.
True
Homeowner's insurance generally provides liability and property protection.
True
Inflation guard automatically adjusts limits when you renew to reflect current construction costs.
True
Retired workers usually do not pay a monthly premium for Medicare Part A insurance.
True
The main purpose of life insurance is to protect dependents from loss of income and other expenses after the death of the insured person.
True
Your coverage will lapse if you are unable to pay the premiums on a term life insurance policy.
True
Insurance you may want to drop as a car gets older is ____.
collision
Bodily injury liability auto insurance coverage pays for ____.
damages and legal fees when the policyholder is responsible for an auto accident that results in the injury or death of others
The amount policyholders are required to pay before insurance pays for any services is the ____________.
deductible
No-fault auto insurance means ____.
each policyholder's insurance pays a portion of the damages, regardless of fault
The type and amount of auto insurance coverage a car owner buys is ____.
governed in part by state laws
The amount of money paid to an insurance company on a regular basis for a policy is the __________.
premium
When buying life insurance, it is smart to ____.
shop until you find the type and amount of coverage you need with the options you find important
The deductible on a health insurance claim is the amount ____.
the patient must pay before the insurer makes any payments
Life insurance that provides the policyholder with basic lifetime protection so long as premiums are paid is known as ________ insurance.
whole
Adequate life insurance protection is important for those ____.
with spouse, children, or others who depend on their incomes
The liability section in your homeowner's policy covers all of the following except ____.
your home
