Econ & Finance Unit 12

Which of the following does NOT need to be covered by floater insurance?

$300,000 house

Which of the following influences your auto insurance premium?

Age

Janice elected not to purchase auto liability insurance when she got her new car. What will she have to pay when she registers her vehicle?

An uninsured motorist fee

David is driving and a dog runs into the road. He misses the dog but instead runs into a ditch, damaging his car. What type of insurance would be used in this situation?

Collision

Jane has health insurance. Her coverage would probably NOT include which of the following?

Cosmetic surgery

Which of the following is the BEST example of someone who needs disability insurance?

Dave is working outside cleaning out the gutter of his two-story home. He falls off the ladder and is not able to return to work for several months.

Tina is applying for life insurance and her insurance company requires her to complete an application along with a medical exam. The following is information about Tina: * 30 years of age *Single *Family history of heart disease * Drives 45 miles to work every day * Lives in San Diego * Rides her bike in her neighborhood 5 days a week * Has been to the doctor 5 times this year since she injured her foot playing volleyball. What information above will she need to indicate on her life insurance application?

Family history of heart disease

Jennifer needs to go to the doctor since she believes she has possibly broken her arm. What type of insurance would she use in this case to see the doctor regarding her arm?

Health

What is the difference between homeowner's insurance and renter's insurance?

Homeowner's insurance covers the residence. Renter's insurance only covers the belongings in a residence.

Which of the following is true regarding a standard homeowner's insurance policy?

Includes replacement costs of your property

Why should you purchase renters insurance?

It will cover the loss of personal items due to a fire.

Eric has a landscaping business. Why does he need liability insurance?

It will protect him if he has customers or clients who claim that they have suffered a financial loss from his services.

Joe's home was destroyed by a hurricane. He received a letter from his insurance company stating that they could not give him the needed $200,000 to reconstruct his home. They could only give him a lesser amount. What happened?

Joe did not insure his home for at least 80% of its replacement value.

Kasey has collision, comprehensive, medical payments, uninsured motorists, and liability car insurance. Which of these insurances is the minimum required by Virginia state law?

Liability

If one of your friends gets injured in the home that you own, what type of insurance would cover their injuries?

Liability insurance

Generally speaking, who would need life insurance the most?

Married man with children whose spouse does not work

David and his best friend are in a car accident with another vehicle and it is David's fault. David and his friend are both injured in the accident. Which part of David's automobile insurance policy would most likely cover the cost of the injuries to David and his friend?

Medical Payments

Which of the following does NOT determine your homeowner's insurance policy rate?

Number of expensive electronics in your home (if not, than it's definitely Distance from your home to a fire hydrant)

What is the difference between an HMO and a PPO?

PPOs do not require you to have a referral from your primary care physician if you need to see a specialist in the network.

An insurance policy is a contract between whom?

Policy holder and the insurance company

What is a co-payment?

Portion of the medical expense that you must pay out of pocket.

What type of insurance is likely to be included in a homeowner's policy?

Property

John wants to ensure that his grandson will obtain his inheritance of $20,000 for college expenses when he goes to college in several years. In order to do this, he should:

Set up a trust specifically stating his wishes for the money that will be for his grandson.

Which of the following is true regarding the uninsured motor vehicle fee?

The fee provides no automobile insurance.

Joe was in a car accident two weeks ago. Why did the insurance company require him to pay $500 before they will pay the remaining costs to get the car repaired?

This is the deductible that he owes.

What does it mean to pay a deductible?

To pay a portion of the loss

Your friend has 3 children and would like a life insurance policy with cash value so that he might borrow against it if needed for his children to go to college. What life insurance option would you recommend?

Whole life insurance

You and your friends have just moved into a new apartment. Who is responsible for purchasing renter's insurance?

You and your friends

Which is the MOST LIKELY reason your auto insurance policy will be cancelled?

You failed to pay your monthly premiums for the past 3 months.

What happens if you do not pay your life insurance premiums?

You will no longer be covered.

What will your renter's insurance cover if the dishwasher floods the apartment that you are renting?

Your clothes ruined by the flood

Estate planning includes which of the following:

all of these answers

One way to transfer your property according to your wishes upon your death is to:

create a will

Jan Bodway has just found out that she has been appointed to rear and provide the personal care of the children of her best friend in her will. What is Jan considered in this will?

guardian

If you want to state your health and medical wishes in the event that you become incapacitated, you should have a:

living will

When you die, most likely, your estate will undergo a process by the court system. This process is known as:

probate