Insurance

What is an insurance premium?

• Your monthly payment to your insurer, regardless of whether you use any services

• A list of the procedures covered by your insurance carrier

• An added cost you pay in order to receive higher-quality services

• The amount you pay out-of-pocket for a specific procedure or service

Which term refers to an arrangement where you are responsible for paying a percentage of covered medical expenses after your deductible is met?

• Deductible limit

• Premium

• Out of Network Fees

• Co-Insurance

Which of these is NOT considered an "out-of-pocket" expense?

• Your Monthly Premium

• A copay of $15 to fill a prescription

• A $1000 deductible if you're in an auto accident

• Excess bills from a car accident once you've gone over your maximum coverage limit

When setting your premium, your car insurance company may consider each of the following EXCEPT...

• How many miles you drive per year

• Your age

• Your driving record

• Your height

Insurance companies make money by...

• Refusing to pay out claims to policyholders

• Collecting money from the government

• Collecting more in premiums than they need to pay out each year

• Keeping costs low with minimal advertising

Which of the following statements is TRUE about auto insurance premiums?

• If you have an auto insurance policy and don't get into a car accident or file any claims for a year, you get your premiums back from the insurance company.

• If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will decrease.

• Auto insurance premiums are a fixed price across all insurance companies.

• Auto insurance premiums can vary from company to company, therefore, it is important to comparison shop for the best price and coverage.

Your renter's insurance policy costs $20/month and has a $1,000 deductible. A thief breaks into your apartment and steals your $800 TV set. How much would your insurance company pay?

• $0

• $200

• $800

• $1000

Since doctors only accept specific health insurance plans, what should you do prior to selecting your own health insurance plan?

• Find an out-of-network doctor for a plan you’re interested in

• Check the list of doctors “in the network”

• Increase your premium amount to upgrade your coverage to include any and all doctors

• Decrease your co-pay amount

Frank has an auto policy with a coverage limit of $30,000 and a deductible of $1,000. He gets into an accident and the damages to his car total $6,200. How much will Frank need to pay out-of-pocket?

• $0

• $1,000

• $6,200

• $30,000

Social Security generally provides insurance for which of the following groups of people?

• The elderly or disabled

• Children and students

• Anyone with a job

• Employees who have a government position