Remediation Unit 6 LT1

Front

The amount paid for insurance is the

Back

premium

Front

What role does insurance play in financial planning?

Back

It guarantees that income and assets are protected

Front

What is the amount of money an insurance policy holder must pay on a claim before the insurance company begins to pay? The higher this is, will usually result in a lower premium.

Back

Deductible

Front

A person buys a homeowner’s insurance policy with a $250 deductible, which means the person will

Back

have to pay the first $250 which will be deducted from the claim settlement paid by the insurance company.

Front

Requires the insured individual to pay a fixed percentage of the loss after the deductible has been paid

Back

co-insurance

Front

Who needs auto insurance?

Back

All people who drive cars.

Front

A contract between the insurance company and the insured that states the exact terms including what risks are covered is a(n)?

Back

policy

Front

A fixed amount you pay for a covered health care service, usually when you get the service.

Back

Copay

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

Which of the following typically have the highest insurance premiums: Young, inexperienced drivers, Older, experienced drivers, Drivers who have safe driving records, Drivers who travel long distances?

Back

Young, inexperienced drivers