Insurance Quizlet

Will

A legally enforceable declaration of how a person wishes his or her property to be distributed after death

Monthly payment

A premium is the...

Earthquake and Flood

A standard homeowners policy will include all of these coverage bundles except...

deductible

A(n) ________________________ is the amount you must pay toward your medical expenses before the insurance start paying.

False

After high school, you should have the following types of insurance: auto, renter's, health, and long-term care insurance.

You will receive a higher level of customer service and better care

All of the following represent a compelling reason to pay a higher insurance premium EXCEPT...

True

Comprehensive coverage takes care of damage to your care that is not caused by a collision.

Your income.

Each of the following factors affect your monthly auto insurance premium EXCEPT...

Health insurance only covers the cost of healing the injury/illness, while long term disability covers a percentage of your income while you are away from work due to the injury/illness.

How is long term disability insurance different from health insurance?

a preset amount of time

How long does term insurance last?

policy

If I want to know what coverage I have, I need to look at my:

Their premium is likely covered by the Federal and/or state government.

If someone gets their health insurance through Medicaid, that means...

Comprehensive

If your car is broken into and you have to get new windows, what kind of coverage must you have in order for the insurance company to cover the cost of repairs?

A guest is injured while inside your apartment

It's a good idea to have renters insurance in case...

term

Life insurance policy for a specific period of time is called:

$280

Marco Martinez has a homeowners insurance that pays 80% of the actual cash value of items. Components of his LCD TV purchased two years ago for $600 melted from the heat of the fire. The tv was declared a total loss. After depreciation, the tv had an actual cash value of $350. How much will Marco's insurance company pay for the tv?

$1440

Melinda Smith has a homeowner's insurance policy that pays 80% of the replacement cost of items. Components of her personal computer purchased three years ago for $2000 melted from the heat and fire. The computer was declared a total lost. A comparable computer sells for $1800 today. How much will Melinda's insurance company pay for the computer?

Setting aside the monthly premium amount into a savings account as an emergency fund.

Optional insurance plans, such as cell phone and pet insurance, can be useful for people who have a history of frequent visits to repair shops or vets. For folks who do not often need these services, which of the following options is the BEST alternative to these types of insurance plans?

$220

Sean Adams has health insurance that pays 80% of covered charges after a $100 deductible. He receives a statement for $700 in covered charges. How much will Sean have to pay?

transfer financial risk

The purpose of insurance is to:

Beneficiary

The recipient of assets passed on from the death of a friend or relative

elimination period

The time between the disabling event and the beginning of payments in your disability coverage is called:

$1,000

Uma's renters insurance policy has a premium of $15/month, a deductible of $1000, and a personal property coverage limit of $40,000. Her apartment is burglarized and $5,600 of possessions are stolen or destroyed. How much will Uma pay in order to replace her stuff?

drop your auto insurance altogether

Which of the following is not a recommended way of lowering your car insurance premiums?

If you are young and healthy, you do not need health insurance

Which of the following is not a recommended way to save on your health insurance premium?

Cancer and hospital indemnity insurance

Which of the following policies would be a duplicate coverage for your health insurance policy?

You should not buy long-term care insurance until you are 30

Which of the following statement about long-term care insurance is false?

life insurance

Which of the following types of insurance is not recommended for a young single adult?

You lose your cell phone

Which of the following would not be a huge financial risk (and, therefore would not require insurance) if you had a full emergency fund of $500 or more?

flood damage

Which of the following would not be covered in a regular homeowner's insurance policy?

Liability

You are involved in a two-car accident in which you are at fault. The other driver is injured and your insurance covers the medical expenses of the victim. This type of insurance coverage is called:

Because you own the car, you can be held responsible the accident that she caused.

You let your friend Drucella borrow your car for the weekend while hers is in the shop. She turned on a "No Right on Red" and hit another car. What will happen since Drucella was at-fault?

Uninsured/underinsured motorist

__________ coverage provides protection against damages caused by a motorist who is at fault but does not have sufficient insurance or means to pay for the full extent of your damages.