Vocabulary
The monthly fee you are charged for your policy is...
your premium.
What type of insurance covers you if you damaged someone else's car in an accident?
Liability insurance
What is a health savings account (HSA)?
It allows people to save untaxed money for health expenses.
Phillip gets insurance through his work. If he has a LOW premium, what does this mean about his deductible? (Will it be low or high?)
It will be relatively high.
Jenny's dog is sick, so she signs up for pet insurance and then takes him to the vet the next day. What is the problem with this?
Insurance doesn't go into effect right away, so if you buy it and try to use it the next day, it will not work.
The amount you pay out-of-pocket before insurance kicks in is...
your deductible.
What type of insurance would cover it if you damaged your car in an accident?
Collision insurance
T or F Publicly funded insurance is paid for using federal and state taxes.
True
Insurance companies operate by charging people different prices for coverage depending on their risk levels. Then, they collect everyone's monthly premiums together and use the money to make payments when people file a claim (for example, someone needs to see a doctor). This concept is known as…
Risk pooling
What is one benefit of purchasing phone insurance?
Ms. Black will decide if your answer is good enough.
A request for an insurance company to pay covered expenses is...
a claim.
What type of insurance covers you if hail destroys your windshield?
Comprehensive insurance
Name one type of health insurance coverage.
Your renter's insurance policy costs $30/month and has a $1,500 deductible. A thief breaks into your apartment and steals your PS5, your gaming chair, and your big screen TV. The value of these things is $1,800.
How much would your insurance company pay?
$300
The max amount your insurance will pay for a loss is...
What type of insurance covers everything no matter what?
None (did I trick you guys?)
Who pays for health expenses once you have met your deductible?
Insurance company
You cause an accident and injure the other driver. The case goes to trial and you must pay the injured person $75,000. You have a $100,000 coverage limit per person for Bodily Injury. How much will the insurance company pay?
$75,000
(but your insurance premium is definitely going up after this!)
Money that your insurance company does not cover must be paid...
out-of-pocket by the insured person.
T or F Massachusetts requires all drivers to carry uninsured motorist insurance.
True
Explain why a healthy young person should still get health insurance.
Ms. Black will decide if your answer is good enough.
Julio has an auto policy with a coverage limit of $45,000 and a deductible of $1,000. He gets into an accident and the damages to his car total $4,400.
How much will Frank need to pay out-of-pocket?
Bonus 200 points: How much will his insurance pay?
$1,000
(Insurance will pay $3,400)