Insurance Fundamentals
How do insurance companies manage risk?
Risk pooling
Medicare
Your vehicle's _______, _______, and ________ affect your auto insurance premium.
make, model, year
A standard homeowners policy usually does not include what natural disaster? (two possible answers)
Earthquake or Flood
Will pay you a partial amount of you income if you can't work for a short period of time.
This is paid before any claims, simply to have insurance
Premium
Health insurance funded by the government on an income basis?
Medicaid
Who is responsible for auto repairs & medical bills when an uninsured driver causes an accident?
The uninsured driver!
What is the major difference between a homeowners and renters policy?
The homeowners policy covers the dwelling & other structures
Pays your beneficiary a lump sum if you die.
Life insurance
This is paid after a claim is made, by the insured
Deductible
The higher the premium, the lower the....
Deductible
What should you do first when getting into an auto accident?
Check for injuries & move the car to a safe location if possible.
A typical renters insurance policy will often cost more than a typical homeowners insurance policy.
True or False?
False
Will pay 40-70 of your income until retirement if you become unable to work
What is disability insurance
You have to pay this after the deductible is met in health insurance
What is coinsurance
This is where you have to go to get insurance if you don't have it through work
The marketplace
What is the only insurance coverage mandated by law (in 49 of the states)?
Auto insurance liability coverage
When should you buy renters insurance
When you rent a place~
This will help cover vet bills
What is pet insurance
This is the most you would have to pay to use your insurance in a calendar year.
Out of pocket maximum
Buying a ________ insurance policy at a young age, while healthy guarantees insurability.
Life
If your windshield is damaged, what kind of auto insurance coverage will pay for the claim?
Comprehensive
If you have a mortgage, who requires you to have homeowners insurance
The bank
When this group provides your health coverage, it is usually cheaper than the market place, better insurance and comes out of your paycheck before paying taxes.
Your employer