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WISE Insurance
WISE Insurance
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#Quiz Insurance Review #Wise review for test #Insurance for Financial Literacy
Flashcards
19 cards
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Questions
19
Answers
1
The purpose of Insurance is NOT to
Share risk with other policy holders and the insurance Co.
Protect assests
Protect against potential losses
Diversify an investment portfolio
2
You receive expensive jewelry and have homeowners insurance; what should you ask your INS agent
"I think I need a personal property floater"
"I need a liability claim"
"I need a high deductible"
"I need to determine my net worth"
3
Generally, the higher the deductible on an insurance policy, the
more frequently the premium has to be paid
Less frequently the premium has to be paid
Lower the premium
Greater the premium
4
You own a store and a customer who was injured in your store may want to sue you. INS 2 buy is
Social Insurance
Surety Bonds
Liability Insurance
Life Insurance
5
Insurance is frequently described as a method of "sharing the risk" because the
Risk of loss is shared with the government
Risk loss is shared with the insurance company salesmen
Insured can share risk by sharing the cost over a # of years
Insured shares the risk of loss with all other policyholders
6
You have a $2,000 lose. Your INS pays you $1,500 for the loss. The $500 your INS did not pay is
The Premium
The Co-insurance clause
The Deductible
The Hazard clause
7
Why is term life insurance usually the least type of life insurance
The policy is available to all consumers
The policy builds a cash value
The policy only pays a death benefit
The policy provides coverage for a lifetime
8
Self-Employed person decides to buy disability insurance it is generally to
Eliminate the chance of going out of business
Insure the cost of injury caused to others will be repaid
Lessen the financial effects of not being able to work
Lesson the possibility of becoming injured
9
After 5 years you have a $20,000 whole life insurance with cash value clause; surrender you get
$20,000 less the premiums paid
A calculated amount of $ that must be converted to term life
One fifth of the $20,000 of the face value
A calculated amount of $ including premiums paid & interest
10
A person buys a flat screen TV & has homeowners insurance. Floater insurance should be brought
To protect the person who owns the TV from liability damages
To reduce the premium on the homeowners insurance
To cover the cost of replacement of TV if stolen or damaged
To show the insurance company a good investment was made
11
What does NOT accurately describe a characteristic of cash value for whole life insurance
If the policy cancels you are entitled to some or all $ back
Insurance company gets to keep the cash value if one dies.
Cash value grows gradually over time
Policy that earns cash value is less expensive
12
Your spouse suddenly dies and has no life insurance. The financial consequence for your family
Death-related expenses to be paid
All of the above
A reduction in your families standard of living
The loss of your income
13
You take out a 50,000 life insurance policy. The 50,000 amount of coverage is called the
Death benefit or face value
Premium value
Annuity value
Cash Value
14
You receive a bill from your INS company and send a check to make sure you are not canceled
Co-Insurance Clause
Deductible
Premium
Exclusion
15
Car policy ends on 5/12 & 5/13 @ 10 AM you change companies you have an accident who is liable?
Your are
The old agent is liable for damage to your car and injuries
The old agent
The new agent
16
A person buys a homeowner's policy with a $250 deductible, which means the person will
Pay the first $250, then the claim will be paid by the INS.
Only receive payment form INS for $250 for anything damaged
Not be responsible for the first $250 of the claimed damages
Have to pay a quarterly premium of $250
17
Lucy has no insurance. the situation(s)should she consider insuring against first are
Losses resulting from an illness,accident, or disability
The policy is available to all consumers
Death so her financial obligations are paid
The policy provides coverage for a lifetime
18
Mr. G's wife died. The money received as a beneficiary on her life insurance is called
Death benefit or face value
Separate value
Cash value
Premium or annuity value
19
You pay the first $500 of medical costs each year before the company will pay any med bills
Premium
Major medical benefit
Co-insurance clause
Annual Deductible
