When should you purchase a rider/floater to your homeowner's policy?

When you have extremely valuable items inside your home

Which of the following is the definition of a PPO?

A network of independent doctors who charge set fees

When does it make sense to terminate your collision coverage?

When your car's market value is less than your deductible

The amount you pay per visit regardless of your deductible.

What is a deductible?

The amount you pay yourself before your insurance kicks in.

Which of the following is an example of whole life insurance?

$1 milllion policy that lasts until you die

What does disability insurance provide?

Income while you recover from serious injury

Which of the following is an example of a term life policy?

$1 million policy that expires after 15 years

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Duplicate of W!se Financial Literacy Test Review-Insurance

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This quiz is for students preparing for the W!se Financial Literacy Exam.

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Questions 15

Answers

1
Insurance is based on which of the following concepts?
Risk assumption
Risk avoidance
Risk sharing
Risk reduction
2
Which type of risk is insurable?
Speculative risk
Pure risk
Economic risk
Risk of Failure
3
When should you purchase a rider/floater to your homeowner's policy?
When you live in a high crime area
When you have extremely valuable items inside your home
When your home is in a flood zone
When your home has a mortgage
4
Which of the following is the definition of a PPO?
A group of doctors who share the same building
A group of doctors with hospital privileges
A group of doctors who only accept government insurance
A network of independent doctors who charge set fees
5
Choosing not to text while driving is what type of risk management strategy?
Risk assumption
Risk reduction
Risk avoidance
Risk transfer
6
When does it make sense to terminate your collision coverage?
When your car's market value is less than your deductible
When your car's market value is more than your deductible
When you are saving up for a new car
Never
7
What is a co-pay?
The amount the insurance company pays per visit.
The amount you pay per visit after you meet your deductible.
The amount the doctor charges you per visit.
The amount you pay per visit regardless of your deductible.
8
Which type of health insurance hires its own doctors and puts them in the same building?
Flex 125
POS
HMO
PPO
9
How can you reduce the cost of auto insurance?
Increase the deductible
All of the above
Drop your collison coverage if possible
Maintain a good driving record
10
What is a deductible?
The amount you may claim on your Schedule A tax form.
The amount deducted from your bill per visit.
The amount you pay yourself before your insurance kicks in.
The amount you must pay for the policy.
11
Which type of insurance is now mandatory in the United States?
Renter's Insurance
Liability insurance
Health insurance
Stupidity insurance
12
Which of the following is an example of whole life insurance?
$1 million policy that gets refunded if you live past age 65
$1 milllion policy that lasts until you die
$1 million policy that expires at age 65
$1 million policy that decreases 10% each year after age 65
13
What happens to your premium when you increase your deductible?
It is waived.
It remains the same.
It increases.
It decreases.
14
What does disability insurance provide?
Psychotherapy when you are seriously injured
Income while you recover from serious injury
Medication when you are seriously injured
Rehabilitation when you are seriously injured
15
Which of the following is an example of a term life policy?
$1 million policy that never expires
$1 million policy that expires after 15 years
$1 million policy that increases after age 65
$1 million policy that automatically builds cash value

Duplicate of W!se Financial Literacy Test Review-Insurance Flashcards | StudBud