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

Why would someone choose to get long term disability insurance even if they already have health insurance?

Back

Health insurance only covers medical bills, while long term disability will help compensate for lost work with a percentage of their income.

Front

Medicaid 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

The elderly or disabled

Front

Your employer offers an employer-sponsored health insurance plan. Which of the following statements is TRUE? You can only see doctors who are also employees of the same company, Your health insurance premiums will be paid directly from your paycheck, pre-tax, Your employer cannot fire you if you get sick or injured because you have employer-sponsored health care, You can remain on that health insurance plan even if you switch jobs

Back

Your health insurance premiums will be paid directly from your paycheck, pre-tax

Front

What type of auto insurance are you required to carry in almost every state (49 out of 50)?

Back

Insurance if you cause injury to another person

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

Insurance companies operate by charging individuals different prices for coverage depending on their risk levels. Then, they collect everyone's monthly premiums together and use the money to make payments when people file a claim (for example, someone is in an auto accident or needs to see a doctor). This concept is known as...

Back

Risk pooling

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.