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Insurance Flashcards | StudBud
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Insurance
Insurance
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Review for the Wise financial literacy test
Flashcards
22 cards
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Practice quiz
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Questions
22
Answers
1
If you own a business and you are worried about a customer injuring him/herself, you buy:
Social insurance
Life insurance
Disability insurance
Liability insurance
2
If you have managed health care then it means that:
You can see any doctor at any time
You are responsible for $100 of the doctor's bill
You usually meet first with your primary care physician
You apply for 80% reimbursement of doctor's bills
3
Health insurance that is coordinated by a primary care physician & has co-pays is:
Managed health care plan
Comprehensive health care plan
Medicaid health care plan
Fee for service health care plan
4
An insurance policy with a $250 deductible means that:
The insurance company pays the first $250 only
Only items of $250 value or less are covered
Insured has to pay the first $250 before insurance pays
Premiums are $250 a quarter
5
When you pay your insurance bill to insure your insurance isn't canceled, you are paying your:
Cash value
Premium
Co-insurance
Deductible
6
Why is term life insurance usually cheapest?
The policy accrues cash value
The policy is available to everyone
It only pays a death benefit
The policy provides coverage for a lifetime
7
You have a $2000 loss and your insurance pays $1500. The $500 difference is:
Co-insurance
The premium
Deductible
The cash value
8
What is the purpose of insurance?
Protect yourself against potential losses
Share risk with other policy holders
All of these
Protect assets
9
Cash value accrues on what type of life insurance policy?
Universal life
Whole life AND Universal life
Whole life
Term life
10
What is cash value in terms of life insurance?
Is the the value of the death benefit
It is the required cash payment to open the policy
It is the portion of the premium that is refundable
It is the total value of all premiums paid
11
Which type of life insurance is most likely to cost MORE?
Whole life insurance
Term life insurance
12
What type of insurance covers vehicles?
Renters
Life
Homeowners
Automobile
13
What does comprehensive car insurance cover?
It covers damage due to a collision
It covers damage due to an uninsured motorist
It covers damage that results from your reckless driving
Covers damage from something other than collision (eg. fire)
14
Which is NOT a consequence of the death of the primary income-earner in a family?
Loss of income
An increase in income
A reduction in the family's standard of living
Death-related expenses
15
The purpose of disability insurance is to:
Reduce the liklihood of going out of business
Replace income lost due to an injury
Pay for medical expenses associated with an injury
Reduce the liklihood of being injured
16
If you get into an accident after you cancel your car insurance & before you get new insurance, who pays?
New insurer
You
Old insurer
No one
17
What type of life insurance does NOT accrue cash value?
Variable universal life
Term life
Whole life
Universal life
18
Zainesha took out a $100,000 life insurance policy. The $100,000 that the beneficiary gets is called:
The cash value
The death benefit
The premium value
The annuity value
19
Which car insurance is more likely to have higher premiums?
Insurance with a low deductible (you pay little of claim)
Insurance with a high deductible (you pay a lot of claim)
20
Why is insurance described as "sharing the risk?"
Cost is distributed over many years
Risk is shared with the insurance salesman
Risk is shared with the government
Risk is shared with other policyholders
21
What is a personal property floater?
Insurance for your boat
Insurance for you hot air balloon
Insurance for a particular item of value
Insurance that is highly flexible in coverage
22
If your car is damaged by an uninsured driver, how can you receive coverage?
Insolvent motorist insurance
Comprehensive insurance
Uninsured or no-fault motorist coverage
Liability insurance
