Chapter 7 - Insurance

Which of the following describes an insurance premium?

• amount the insured must pay before the insurance company pays a claim

• amount someone pays for insurance coverage

• amount insurance company will pay towards a claim

• highest, most expensive form of insurance coverage

Which of the following perils may NOT be covered in a basic homeowner’s policy?

• flood

• injury of a guest

• falling debris on house

• fire

Which of the following are included in a basic homeowner’s policy?

• home or property damage, expenses to live elsewhere, vet costs for injured pets

• home or property damage, expenses to live elsewhere, damage to farmland

• home or property damage, liability losses (injury), maintenance costs

• home or property damage, liability losses (injury), expenses to live elsewhere

Which of the following describes a life insurance beneficiary?

• person who receives the insurance benefits upon the death of the insured

• person who purchases the life insurance

• insurance company that sells the life insurance

• beneficiary is not a real word

Which of the following describes an insurance deductible?

• amount the insured pays for coverage

• amount the insured must pay before insurance company pays a claim

• stated limit of insurance coverage imposed by the insurance company

• portion of your insurance you may deduct from your taxes

Which of the following are typically included in a comprehensive medical policy?

• regular medical, surgical, worker’s compensation, and major medical insurance

• regular medical, disability, hospital, and major medical insurance

• regular medical, surgical, hospital, and major medical insurance

• regular medical, surgical, hospital, and dental insurance

Which of the following is NOT true of term life insurance?

• premium – begins low but gradually increases

• only covered for a specific period (5-20 years)

• has cash value

• fixed death benefit

Which of the following is NOT true of whole life insurance?

• low cost premiums

• covered for life

• some cash value

• fixed death benefit

People typically get group health insurance through their employers

• true

• false

The only purpose of life insurance is to pay for funeral and burial costs.

• true

• false