Insurance Basics
What do you call the amount of money you have to pay before insurance will cover the rest of a bill?
The deductible
If you are hit by someone who does not have car insurance, which type of car insurance would cover the damage?
Uninsured/Underinsured, State Motorist, Auto liability
Uninsured/Underinsured
What insurance would some one need if they buy want to buy expensive jewelry that isn't covered by homeowner's insurance?
Personal property floater
Janey went to her primary care physician, who then referred her to a specialist. She had to pay a 10$ co-pay to see her doctor.
What type of health insurance does she have?
Managed, Medicaid, Comprehensive
Managed (HMO)
This type of life insurance does not develop a cash value:
Term, Whole, Universal
Term
If you are unable to work, which type of insurance would help you maintain your lifestyle?
Life, Health, Disability
Disability
The amount that someone pays to maintain their insurance policy is their
Exclusion, premium, deductible
Premium
What type of insurance do you need to buy if you don't own the household you live in?
Renters insurance
If a person has a $250 deductible, a $20 premium, and $40000 in coverage, how much do they need to pay before insurance covers the rest?
$250
What could happen to John's family if he dies and doesn't have life insurance?
The would have to change their lifestyle/go broke.
True/False
False
If Tom is driving to his new insurance agent to buy a new car insurance policy and he causes a car accident, who pays for the damage to his car?
The new agent, Tom, the old agent.
Tom
Gia owns a clothing store. If she wants to protect herself from being sued if someone hurts themself in her store she needs to buy_________.
Life insurance, social insurance, liability insurance
Liability insurance
What do you call medical condition you have before you go to see the doctor?
Pre-existing condition
The __________ is the amount paid to a beneficiary under a life insurance policy.
Death benefit, term insurance, disability insurance
Death benefit
In the world of insurance, risk is shared between ____________.
Policy holders OR the insurance company and the individual policy holder
policy holders
The higher the insurance deductible the ________ the insurance premium.
lower
How can you lower the cost of you home insurance premium?
Doing safe things in your house
The person who gets to collect the money from a life insurance policy is known as the
Claimant, rider, beneficiary
Benficiary
Laurie took out a $30000 insurance policy. The $30000 that she could claim is also known as the
Cash value, coverage, bill
coverage
Insurance is not meant to:
Diversify an investment portfolio, protect assets, share risk with other policy holders.
Diversify an investment portfolio