Insurance

Which type of insurance is likely to be the lowest priority for a single, working, 24-year-old?

• Health insurance

• Disability insurance

• Life insurance

• Auto insurance

The federal agency that oversees insurance companies is

• The Federal Trade Commission

• The Department of Transportation

• The Consumers Union

• Insurance companies are regulated on a state-by-state basis

What role does insurance play in financial planning?

• It guarantees that income and assets are protected

• It helps build and maintain one's credit score

• It helps cover day-to-day expenses

• It grows in value and appreciates over time

The out of pocket cost to the insured when a loss occurs is called...

• Premium

• Deductible

This professional analyzes statistics and uses them to calculate risks and premiums.

• Agent

• Actuary

• Claims Clerk

• Underwriter

A stone hits your windshield. Which type of coverage would likely cover this expense?

• Collision

• Liability

• Comprehensive

• None

Each of these factors impacts your insurance premium EXCEPT...

• Deductible amount

• The vehicle you are insuring

• Your credit score

• Your income

Which of the following wouldn't save you money on your auto insurance premium?

• Decrease your deductible

• Reduce or eliminate optional insurance on an older vehicle

• Maintain a good credit history

• Bundle your insurance with other policies

Jennifer has an auto policy of $20,000/$40,000/$10,000. The $10,000 covers

• Per person bodily injury

• Property damage per occurrence

• Per occurrence bodily injury limit

• Total amount of insured coverage

A policy is a contract between the

• Policyholder and the injured person

• Driver and the government

• Consumer and the insurance company

• Consumer and the insurance agent