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