Understanding Insurance Basics Flashcard

What is an insurance premium?

Which term refers to the percentage of covered medical expenses you are responsible for paying after your deductible is met?

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

Insurance companies make money by...

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.

Your renter's insurance policy costs $$\text{}20\ dollars\ per\ month\ and\ has\ a$$ 1,000 deductible. A thief breaks into your apartment and steals your $800 TV set. How much would your insurance company pay?

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?

You cause an accident and injure the other driver. The case goes to trial and there is a verdict to compensate the injured person with $$58,000.You\ have\ a$$ 75,000 coverage limit per person for Bodily Injury. How much will the insurance company pay?

How much will Frank need to pay out-of-pocket for damages totaling $6,200 with a deductible of $1,000?

A type of risk management that protects you from losing money if something happens to you or your property is called...?