Insurance Flashcard

Front

What is an insurance premium?

Back

Your monthly payment to your insurer, regardless of whether you use any services

Front

When setting your premium, your car insurance company may consider each of the following EXCEPT...
How many miles you drive per year, Your age, Your driving record, Your height

Back

Your height

Front

Insurance companies make money by...

Back

Collecting more in premiums than they need to pay out each year

Front

Which of the following statements is TRUE about auto insurance premiums? If you have an auto insurance policy and don't get into a car accident or file any claims for a year, you get your premiums back from the insurance company, If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will decrease, Auto insurance premiums are a fixed price across all insurance companies, If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will increase

Back

If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will increase

Front

Someone broke into Sam’s car by smashing the passenger window. Which type of auto insurance coverage will help cover the cost to get the window replaced?

Back

Property

Front

Each of these is considered an "Insurance" expense EXCEPT... Your monthly premium, A copay of $15 to fill a prescription, A $1000 deductible limit if you're in an auto accident, Gas for your car

Back

Gas for your car

Front

Health Insurance generally provides insurance for which of the following groups of people?
The elderly or disabled, Individuals in low-income households, Anyone who wants to buy coverage from the Marketplace, Employees who have a government position

Back

Anyone who wants to buy coverage from the Marketplace

Front

Why is it risky for Bruce to rely on his emergency fund instead of paying for insurance?

Back

An accident or illness can strike at any time and be quite expensive, so it's possible he'd need a big sum of money well before his emergency fund was large enough.

Front

What type of health insurance is likely to be best for someone who is very healthy, not taking any prescription medicines, and generally only sees their doctor for an annual physical? Options: A low deductible plan with a high monthly premium, A high deductible plan with a low monthly premium

Back

A high deductible plan with a low monthly premium

Front

In general, how do insurance companies decide how much to charge an individual for their monthly premiums?

Back

The company assesses the individual's risk factors and assigns higher premiums to higher risk individuals.