What does disability insurance provide?

Income while you recover from serious injury

When does it make sense to terminate your collision coverage?

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

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 an example of whole life insurance?

$1 milllion policy that lasts until you die

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 the definition of a PPO?

A network of independent doctors who charge set fees

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

$1 million policy that expires after 15 years

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

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