Insurance Test Review

What is an insurance premium?

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

• A list of the procedures covered by your insurance carrier

• An added cost you pay in order to receive higher-quality services

• The amount you pay out-of-pocket for a specific procedure or service

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

• Deductible limit

• Premium

• Out-of-network fees

• Co-insurance

What statement below best describes Social Security?

• Every American decides how much they want to contribute each paycheck, and they will receive their money back once they retire

• Everyone pays Social Security taxes when they are working and can collect benefits in retirement

• The Social Security benefits are designed to be the sole source of income for all retired Americans to live comfortably

• Everyone pays into Social Security and low-income Americans collect benefits to supplement their income

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.

• True

• False

Your renter's insurance policy costs $20/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 owe you?

• $0

• $200

• $240

• $800

• $1,000

Which automobile policy do you believe will have the highest premium (all other factors being equal)?

• Auto policy with $250 deductible

• Auto policy with $500 deductible

• Auto policy with $1,000 deductible

• Auto policy with $2,500 deductible

While parked on the street overnight, the passenger window in Sam's car was knocked out by someone trying to break in. Which type of auto insurance coverage will help cover the cost to get the window replaced?

• Liability

• Collision

• Comprehensive

• None. Typically this type of damage isn't covered in an auto policy

Since doctors typically only accept specific health insurance plans, you should check the list of doctors "in the network" before you select your health insurance plan.

• True

• False

Car insurance premiums are set by law, and will stay the same as long as you don't switch providers.

• True

• False

Frank has an auto policy with a coverage limit of $30,000 and a deductible of $1,000. He causes an accident and the other driver's medical bills are exactly $23,000. How much will Frank need to pay out-of-pocket?

• $0

• $1,000

• $7,000

• $22,000