Chapter 21.1 Insurance

In a group health insurance plan, many employers pay at

least part of each employee's premium.

• True

• False

Term life insurance is very expensive because it is issued

for a short period of time.

• True

• False

Major medical insurance typically pays for routine medical care, prescriptions, and outpatient hospital care.

• True

• False

Disability insurance provides benefits if someone cannot work because of a disability.

• True

• False

For property insurance, insurable interest must exist at the time of the loss. For life insurance, insurable interest must exist

• at the time you buy insurance

• at the time you use insurance

• one month prior to buying insurance

• within 48 hours after buying the insurance

To purchase insurance, a person must have a(n) ____________________ in the person or property to be insured .

• PPO

• Insurable Interest

• Inland marine

• Annuity

A group of doctors or hospitals that provides care for employees at a reduced rate is called a ____________________.

• Insurable Interest

• Testimony capacity

• PPO (preferred provider organization)

• Annuity

____________________ insurance covers goods that are moved by trains, trucks, and airplanes.

• PPO

• Executor

• Inland Marine

• Marital

____________________ insurance protects against losses of real and personal property due to fire, windstorm, burglary, and vandalism.

• Car

• Homeowners

• Comprehensive

• Annuity

. ____________________ insurance covers damage to your car from fire, theft, flood, and vandalism.

• Homeowners

• Car

• Comprehensive

• Annuity