Insurance

Patty recently moved into a new apartment with her friend Emma. Who is responsible for purchasing renter's insurance?

• Patty and Emma's parents
• Patty and Emma
• Patty and Emma's parents
• Renters insurance is not necessary

What is the difference between property and liability insurance?

• property insurance pays for loss to the insured person whereas liability insurance pays for loss to other people
• Property insurance pays for loss to other people whereas liability insurance pays for loss to the insured person
• The difference between property and liability insurance depends on the specific insurance policy purchased
• The difference between property and liability insurance depends on whether automobile, homeowners, or renters insurance is purchased.

It is recommended that life insurance be purchased when the:

• Individual reaches the age of 50
• individual flies in an airplane
• Individual has dependents 
• individuals gets their first job

Eric has chosen Amanda to be the beneficiary of his insurance policy. What does this mean for Amanda?

• Amanda must pay the insurance premiums to keep the policy in effect

• Amanda will receive any proceeds if the Eric dies.

• Amanda will receive a commission for selling Eric his life insurance policy.

• Amanda is required to serve as the executor of Eric's estate.

As part of Nicholas' new job, his employers will provide health, life, and disability insurance. Access to this insurance is provided in addition to his regular salary. This is known as:

• employee benefits
• coverage
• household production 
• government programs

James received his first medical bill of the year. It was a total of $1000. His health insurance policy has $500 deductible . How much of the medical bill will Jade be responsible to pay?

• $500

• $700

• 0$ , insurance will cover the entire medical bill

• $600

Tiffany was recently involved in a vehicle accident. In order to get her car fixed, her insurance company is requiring her to pay the first $500 of the repair bill because 

• She did not call her agent and report the accident quickly enough
• Her policy's deductible is $500 
• She will be reimbursed by the insurance company later
• The cost of repairs is higher than her policy covers

Insurance can be purchased to protect one from which of the following losses?

• Stock market losses
• Health care expenses
• Maintaining the price of your home
• Car maintenace

Maggie will need to pay $120 per. month in order to purchase a health insurance policy. This monthly payment is known as the

• deductible
• co-insurance
• premium
• moral hazard

Which of the following best describes the benefits of having insurance?

• The policyholder may become better off finically if an accident occurs
• Insurance combined with emergency savings provides a sense of financial security and peace of mind
• The policyholder no longer has to worry about paying for financial losses resulting from an accident because all risk of financial loss is transferred to the insurance company
• It is required by law to purchase insurance so the benefits do not matter