Collision insurance is a coverage that helps

repair or replace your car if it is involved in an accident

Liability is the state or quality of being

obligated according to the law, being at fault

What is the purpose of a person's Will?

To distribute a person's assets based on their choices

AN HSA is a ___ which is a ____ savings account for medical expenses using pre-tax dollars

Health Savings Account; tax-sheltered

Which is the most true?

Your parents can leave their money to any person or group

The basic purpose of insurance is to

transfer financial responsibility

The deductible amount on your insurance is

amount you must pay before the insur. company pays anything

How are homeowner's and renter's insurance similar?

They both cover loss due to theft or fire

what you file with your insurance company to get help

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Chap 9 Insurance_Review MM

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Money Matters-Personal Financial LIteracy

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Questions 21

Answers

1
What type of insurance covers you in the event of illness or injury?
Homeowner's
Life
Health/Disability
Term Life
2
Collision insurance is a coverage that helps
Medical bills
Damage to another person’s vehicle
repair or replace your car if it is involved in an accident
Weather
3
Liability is the state or quality of being
obligated according to the law, not being at fault
obligated according to your insurance co., being at fault
obligated according to the insurance co., not being at fault
obligated according to the law, being at fault
4
What is the purpose of a person's Will?
To transfer ownership of assets exclusively to your children
To distribute a person's assets based on their choices
A budget plan for the spending of assets by beneficiaries
A tax savings method to transfer assets before death
5
Your insurance policy
describes all the exclusions
describes all of your coverage
details the costs of the premium
all of these
6
Dave Ramsey's recommends 8 types of insurance. Select the one below that he does not recommend.
Umbrella Policy
Long-Term Health Care
Term Life Insurance
Credit Life Insurance
7
Your insurance premium
can be paid monthly, quarterly, semi-annually or annually
will generally increase if you file a Claim
all of these are true
is the amount you have to pay for your policy
8
AN HSA is a ___ which is a ____ savings account for medical expenses using pre-tax dollars
Health Spending Account; tax-sheltered
Health Spending Account; taxable
Health Spending Account; taxable
Health Savings Account; tax-sheltered
9
The recipient of assets passed on from the death of family or friend
Donor
Viatical
Beneficiary
Conservator
10
Dave calls all of these "rip-off's" examples of insurance except
accidental death
credit card protection
identity theft
mortgage life insurance
11
What insurance covers the cost of a nursing home or in-home care?
Disability insurance
Long-Term Care Insurance
Term Insurance
Social Security Insurance
12
If you increase the amount of your deductible on your insurance, your premium will
stay about the same
go up
go down
13
Which is the most true?
You are entitled to your parents assets
grandparents must make you a beneficiary
your parents must make you a beneficiary
Your parents can leave their money to any person or group
14
A legally enforceable declaration of how a person wishes their assets to distribute upon death
Umbrella policy
Life Insurance
Viatical policy
Will (Last Will & Testament)
15
Age affects car insurance rates because
Insur. companies charge higher premium for teens and seniors
Teenagers have less experience under their belt
All of these are correct
Teenagers 16-19 are 3 x more likely to get into a crash
16
The basic purpose of insurance is to
ensure you won't get sick or have accidents
split the cost of repairs or illnesses with the owner
transfer blame
transfer financial responsibility
17
The deductible amount on your insurance is
amount you must pay before the insur. company pays anything
going to increase if you get sick or in an accident
the amount the company will pay for your coverage
the amount the other person in the accident must pay
18
A ticket for DUI will
be on your record for 7-10 years
all of these are true
cause your insurance to sky rocket
create a huge debt burden for several years
19
How are homeowner's and renter's insurance similar?
Only homeowners covers for Acts of God
They both cover loss due to theft or fire
They both cover the contents and structure
They both automatically cover loss at replacement cost
20
The time between the disabling event and when payments actually begin is called the _.
buffer
delay schedule
elimination period
stop-gap
21
A Claim is
what you file with your insurance company to get help
A statement claiming that you are not at fault
the description of your insurance coverage
The amount of an accident that you have to pay up-front

Chap 9 Insurance_Review MM Flashcards | StudBud