Insurance Review

A woman has just received a very expensive piece of jewelry. The woman has homeowner's insurance. Which statement would it be most appropriate for her to make to her insurance agent?

• A.  "I think I need a personal property floater."
• B.  "I think I should get speculative risk insurance."
• C.  "I will deduct the cost of the jewelry from my premium."
• D.   "I realize that if this jewelry is stolen it will be considered vicarious liability."

For the past five years, a person has had a $20,000 whole life insurance policy that has a cash value clause. The person decides to surrender the policy.  At the time of surrender, the person will receive

• A.  one-fifth of the $20,000 face value.  
• B.  $20,000 less the premiums paid.  
• C.  a calculated amount of money which includes the premiums paid as well as the interest on that money.  
• D.  a calculated amount of money that must be converted to a term life insurance policy.  

The only type of life insurance that does not develop a cash value is:

• A.  Term life insurance  
• B.  Whole life insurance  
• C.  Universal life insurance
• D.  Variable universal life insurance  

A person buys a homeowner's insurance policy with a $250 deductible, which means the person will

• A.  have to pay a quarterly premium of $250.
• B.  have to pay the first $250 which will be deducted from the claim settlement paid by the insurance company.
• C.  only receive payment from the insurance company of $250 for any single article damaged.
• D.  not be responsible for the first $250 of the claimed damages.

Sally took out a $50,000 life insurance policy.  The $50,000 amount of coverage is called the:

• A.  Cash value
• B.  Premium value
• C.  Death benefit or face value
• D.  Annuity value

When a self-employed person decides to purchase disability insurance it is generally to

• A.  lessen the possibility of becoming injured.
• B.  protect against the financial effects of not being able to work.
• C.  Separate value
• D.  Premium or annuity value      

Mr. Akon's wife died. The money he received as the beneficiary on her life insurance is called the:

• A.  Cash value
• B.  Death benefit or face value
• C.  Separate value
• D.  Premium or annuity value

The amount paid for insurance is the

• closing cost
• premium
• deductible
• assessed value

Insurance that protects your family against financial loss due to your death is

• coinsurance
• disability insurance
• life insurance
• comprehensive insurance

The type of insurance that provides protection against financial loss from medical bills is called

• health insurance
• coinsurance
• life insurance
• premium

Tags

CCSS.7.RP.A.3