Insurance

In a managed health care insurance plan, such as health maintenance organization (HMO), the individual member receives:

• medical coverage only for hospital care in the emergency room

• a specific number of coupons to be used when medical treatment is necessary

• medical treatment of a specified co-payment

• a bill 100% of the cost to visit a doctor or medical office

Car insurance companies are likely to place drivers in the "assigned risk pool" if they:

• are over the age of 65

• are born outside of the US

• have had several recent accidents

• have teenage children

A benefit of buying term life insurance as opposed to whole life insurance is that term insurance usually:

• offers a greater amount of insurance coverage for a specific period of time at a lower cost

• builds more cash value over time for the policy holder

• provides lifetime insurance coverage for a fixed cost per year

• combines lifetime insurance coverage with an opportunity for building savings at a reasonable cost

A woman is offered two jobs; one with a salary of $27,000 plus benefits and the other at $30,000 with no benefits. It would be a wise financial decision for her to take the:

• $27,000 job, if the benefits package is worth more than the $3,000 difference in salary

• $27,000 job, because her taxes will be lower

• $30,000 job, since she has no need for medical benefits because she is healthy

• $30,000 job, because if she is making a higher salary, she is guaranteed quarterly sales increases

If you have a $500 deductible on your car insurance and you have a wreck that causes $4,000 in damage to your car, how much will the insurance company pay?

• $4,500

• $4,000

• $3,500

• $5,000

When you receive an inheritance or money from a life insurance policy you are the:

• receiver

• beneficiary

• first born

• holder

A person buys a flat screen, plasma, theater-like television. The person has homeowner's insurance. Why would it be appropriate to add a personal property floater to that insurance?

• to reduce the premium on the homeowner's insurance

• to protect the person who owns the television from liability for damages

• to show the insurance company a good faith investment has been made

• to cover the cost of replacement should the television get damaged or stolen

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

• one-fifth of the $20,000 face value.

• $20,000 less the premiums paid

• a calculated amount of money which includes the premiums paid as well as the interest on that money

• 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:

• term life insurance

• whole life insurance

• universal life insurance

• variable universal life insurance

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

• have to pay a quarterly premium of $250

• have to pay the first $250 of a claim settlement paid by the insurance company

• only receive payment from the insurance company of $250 for any single article damaged

• not be responsible for the first $250 of the claimed damages