Understanding Insurance Basics Flashcard

Front

What is an insurance premium?

Back

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

Front

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

Back

Co-insurance

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

Back

$0

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

Comprehensive

Front

Back

$58,000

Front

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

Back

$1,000

Front

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

Back

insurance