Chapter 19 Insurance Test Review

Insurance is a contractual arrangement that protects against loss.

• True

• False

The insurer agrees to pay the insured for loss suffered by the beneficiary.

• True

• False

To obtain a contract of insurance against a risk, a premium must be paid.

• True
• False

Medicare provides coverage primarily for those aged 62 and older.

• True
• False

Most states have minimum insurance requirements for operating an automobile in their state.

• True
• False

A written agreement for insurance is a called a:

• Insurer
• Insurance Bond
• Policy
• Premium

Proving that a loss would effect you directly is showing that you have:

• Insurable Interest
• Beneficiary Status
• Indemnity Clause
• Floating Coverage

The higher the deductible the lower the premium

• True

• False

Before insurance begins to cover a patient, the ___ must be paid first, the the insurance will begin to pay.

• Medicaid
• HMO
• PPO
• deductible

Someone who receives money if an insured person dies

• claim
• beneficiary
• dependent
• employee benefits