chapter 9 insurance

Kris Kringle has 200/500/100, what amount of money will he be covered for each person's individual bodily injury in an auto accident?

$200,000

Which of the following statements about life insurance is true?

Cash value insurance is normally for life and is more expensive than term life insurance because it funds a savings plan.

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

Drop your auto insurance altogether

A person becomes self-insured when:

Their kids are grown, they have no debt, and they have fully funded retirement

Matthew went fishing at The Fox River. While his car was unattended, someone stole Matthew's hubcaps. What type of coverage(s) is needed?

comprehensive

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

false

Disability insurance is usually cheaper if you buy it yourself rather than buying it through your employer.

false

If you are at fault in a car accident, your insurance will only pay for your damages, not the other cars.

false

It's acceptable to have duplicate insurance in most instances.

false

Prepaid burial policies are a good idea.

false

Renters insurance will cover the cost of your apartment (walls, floors, light fixtures) in the event of a fire.

false

Renterʹs insurance is not necessary if you donʹt have a lot of expensive things.

false

You do not need renters insurance if you are living in a college dorm.

false

Someone trips and falls in your apartment and is injured. What type of renters insurance covers this?

liability coverage

According to Dave Ramsey, which of the following types of insurance is not recommended for a young single adult?

life insurance

A pipe accidentally bursts inside the wall and the water destroys your belongings. What type of renters insurance covers this?

property coverage

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

term

Any insurance with cash value or that combines insurance with investments is a bad idea.

true

HSA's or health savings accounts normally have a high deductible.

true

The concept of in-network and out-of-network refers to what doctors an insurance company will pay for

true

Your comprehensive and collision deductibles can be different amounts in your auto insurance policy.

true

If an insurance policy has bodily injury liability stated as 100/300, what does the 100 mean?

you have coverage up to $100,000 for each person in the accident