Chapter 22 Understanding Insurance

A legal contract between an insured person and the insurance company is called 

• insurance policy
• underwriter 
• exclusion 
• premium

What do you submit to your insurance company after an accident?

• policy
• claim
• collision insurance
• a driving record

What type of insurance covers damage or injury to caused by you to another person

• collision insurance
• comprehensive insurance
• liability insurance
• life insurance

Losses or risks that an insurance policy will not cover are called

• deductibles
• premimum
• exclusions 
• claims

One good way to keep down insurance cost is to 

• comparison shop
• cancel your auto insurance
• ask for no-fault insurance
• lower your deductible

Liability insurance covers

• property damage to your car and injuries
• your injuries, and protection for your dependents if you die
• theft, fire, and vandalism for your car
• damage to other cars or injuries to other people for which you are responsible

A preferred provider organization (PPO) offers

• lower costs than HMO, but less choice of doctors
• higher costs than HMO, but more choice of doctors
• lower costs than major medical coverage, but more choice of doctors
• higher costs than major medical coverage, but more choice of doctors

In a health maintenance organization, (HMO) members usually pay a small 

• deductible
• coinsurance
• copayment
• claim

The person most likely to need life insurance is a(n)

• unmarried person
• unemployed person
• married person without children
• married person with children

 A type of insurance that lets you borrow against a reserve of money 

• term life insurance
• whole life insurance
• disability insurance
• liability insurance