Insurance Review

Which type of insurance is likely to be the lowest priority for a single, working 24-year-old?

• disability insurance

• health iunsurance

• auto insurance

• life insurance

life insurance

The federal agency that oversees insurance companies is

• Insurance companies are regulated on a state-by-state basis

• The Department of Transportation

• The Consumers Union

• The Federal Trade Commission

Insurance companies are regulated on a state-by-state basis

What role does insurance play in financial planning?

• it grows in value and appreciates over time

• it helps build and maintain one's credit score

• it guarantees that income and assets are protected

• it helps cover day-to-day expenses

it guarantees that income and assets are protected

The out of pocket cost to the insured when a loss occurs is called...

• Deductible

• Premium

Deductible

This professional analyzes statistics and uses them to calculate insurance risks and premiums.

• Agent

• Claims Clerk

• Underwriter

• Actuary

Actuary

A stone hits your windshield. Which type of coverage would likely cover this expense?

• Comprehensive

• Liability

• Collision

• None

Comprehensive

Each of these factors impacts your insurance premium EXCEPT...

• Deductible amount

• Your credit score

• The vehicle you are insuring

• Your income

Your income

Which of the following wouldn't save you money on your auto insurance premium?

• reduce or eliminate optional insurance on an older car

• maintain a good credit history

• decrease your deductible

• bundle your insurance with other policies

decrease your deductible

Jennifer has an auto policy of $20,000/$40,000/$10,000. The $10,000 covers

• total amount of insured coverage

• property damage per occurrence

• per person bodily injury

• per occurrence bodily injury limit

property damage per occurance

A policy is a contract between the

• driver and the government

• consumer and the insurance agent

• policy holder and the injured person

• consumer and the insurance company

consumer and the insurance company

Under current law, until what age can a child stay on their parents' health insurance?

• 29

• 18

• 26

• 21

26

Your health insurance copay is

• amount paid out of pocket before your insurance coverage

• a fixed amount of money you pay each time you use your plan

• applied on an annual basis

• paid by the insurer

a fixed amount of money you pay each time you use your plan

How can you obtain health insurance?

• remaining on your parents' plan if you are under age 30

• through your bank or credit union

• signing up at your family doctor's office

• from an insurance agent or through the Health Insurance Marketplace

from an insurance agent or through the Health Insurance Marketplace

Which of the following would be covered under a renter's insurance policy?

• damage to a detached shed on the property

• your roomates personal belongings in the rental unit

• medical bills of another person who is injured on property

• damage to the exterior of the property

medical bills of another person who is injured on property

The FDIC insured deposit limit is

• $250,000

• $300,000

• $150,000

• $200,000

$250,000

What information is typically listed on an insurance policy?

• the policy period

• actual cash value of the property being insured

• your credit score

• a list of your outstanding debts

the policy period

Insurance is based on the concept of shared risk, or risk pooling. (T/F)

True

Each of the following things is TRUE about social security EXCEPT...

• it replaces part of your income if you die leaving survivors

• it replaces part of your income if you become disabled

• it replaces the need for health and life insurance

• it replaces part of your income when you retire

it replaces the need for health and life insurance.

What is the average monthly renter's insurance premium cost in the U.S.?

• $40/month

• $15/month

• $90/month

• $150/month

$15/month

Which insurance coverage is required by law?

• renters insurance

• disability insurance

• auto insurance

• homeowners insurance

auto insurance