Everfi: Insurance

Insurance can help you:

• a. minimize monthly expenses

• b. financially protect against unexpected accidents

• c. reduce the chances of getting into an accident

• d. cover all out-of-pocket costs

Which of the following would likely be covered under homeowners insurance but NOT by renter's insurance?

• a. Your basement floods, causing you to lose a valuable collection.

• b. A burglar makes off with your laptop while you're out of town.

• c. A tree branch breaks your bedroom window during a storm.

• d. A fire destroys almost all your possessions.

Jan pays $70 each month for her auto insurance policy. This regular payment is called a:

• a. co-pay

• b. deductible

• c. premium

• d. claim

In which of the following scenarios will you be entitled to pay the least amount of money out-of-pocket for a medical expense?

• a. You have no insurance.

• b. You have health insurance with a $500 deductible.

• c. You have auto insurance with a $700 deductible.

• d. You have health insurance with a $1,500 deductible.

Your auto insurance policy has a $200 monthly premium and $700 deductible. What is the maximum amount you will have to pay out-of-pocket for a car accident before your insurance covers your costs?

• $200

• $500

• $700

• $900

You have an insurance policy with a $300 premium and a $500 deductible. How much should you expect to pay the insurance company each month for coverage?

• $200

• $300

• $500

• $800

Which of the following typically have the highest auto insurance premiums?

• a. Young, inexperienced drivers

• b. Older, experienced drivers

• c. Drivers who have safe driving records

• d. Drivers who travel short distances

The person who receives financial protection from a life insurance plan is called a:

• a. Beneficiary

• b. Payer

• c. Insured

• d. Giver

A set amount of money you pay to the insurance company to purchase a policy for coverage.

• Deductible

• Claim

• Premium

• Co-Pay

The amount that you have to pay out of pocket on a loss before the insurance begins paying is the:

• Premium

• co-insurance

• deductible

• none of the above