Insurance

Front

Piper is willing to pay a high premium for their disability insurance. What are the likely outcomes of paying that higher premium?

Back

They receive a low deductible and a high coverage limit.

Front

Why is risk pooling essential for the insurance industry to exist?

Back

Risk pooling creates large groups to spread the risk level out while maximizing the amount of premiums that can be collected.

Front

Karishma has a renters insurance policy with a coverage limit of $25,000. While she’s on vacation a fire breaks out, ruining $9,000 worth of possessions before the fire department puts it out. Her deductible is $500. How much will Karishma and the insurance company each pay?

Back

Karishma pays $500, while the insurance company pays $8,500.

Front

Ralph wants to ensure the insurance company will help him fix or replace his car in case of damage. Each of these coverage areas will provide the type of coverage he’s looking for on his car EXCEPT: Uninsured/underinsured motorist, Collision, Comprehensive, Liability.

Back

Liability

Front

If you drive a fancy car a lot of miles each month, your premiums will likely be…

Back

Higher than expected compared to another driver with the same driving record but a cheaper car

Front

Bodily injury liability coverage provides coverage in which scenario?

Back

The insured driver causes an accident where another person is injured.

Front

Each of these coverage areas is part of a standard renters insurance policy EXCEPT for… Loss of use, Personal Property, Liability, Dwelling

Back

Dwelling

Front

What is the liability portion of a homeowners insurance policy meant to cover?

Back

The cost of a lawsuit if someone sues you for injuries they got on your property.

Front

Which college student is MOST likely to need their own renters insurance policy? Options: Abigail, who lives with her parents and commutes to college; Beatrice, who is a freshman living in a dorm and whose mom has homeowners insurance; Carson, who is a senior living in a dorm and whose guardians have homeowners insurance; Dani, who lives in an off-campus apartment with her cousin and a friend.

Back

Dani, who lives in an off-campus apartment with her cousin and a friend

Front

How is a deductible different from an out-of-pocket maximum?

Back

A deductible is the minimum the insured person pays before insurance kicks in, while the out-of-pocket max is the most the insured person pays for care.