Module 7: Insurance Test Review

The fee paid by the policyholder is called a ____.

• Policy

• Deductible

• Premium

• Face Amount

Which is true about risk and insurance?

• The higher the risk, the higher your insurance deductible

• The higher the risk, the lower your insurance deductible

• The higher the risk, the higher your insurance premium

• The lower the risk, the higher your insurance deductible

Which of the following can help reduce insurance costs?

• Increase deductibles

• Purchase Group Insurance

• Look for Discount Opportunities

• All of the Above

If a car was damaged in a flood, which type of car insurance would typically cover the damage to the car?

• Universal

• Term

• Disability

• Comprehensive

If Duncan’s car was damaged by a hit-and-run driver or a driver without insurance, how will the cost of damage be covered?

• Term Life Insurance

• Comprehensive Insurance

• Uninsured Motorist Coverage

• Duncan will have to pay

Which coverage pays for injuries and damages to OTHERS only?

• Comprehensive

• Collision

• Personal Injury Protection

• Liability

The ____ is the individual who will receive the benefits of a life insurance policy.

• Trustee

• Beneficiary

• Power of Attorney

• Notary Public

Which type of insurance coverage would pay for damage incurred from backing into a grocery cart in a parking lot.

• Medical

• Collision

• Personal Injury Protection

• Liability

A type of health insurance that allows people who have lost their jobs to continue their health care is called ______?

• FICA

• HIPPA

• COBRA

• PYTHON

Which of these is insurance for a specified time only?

• Term

• Major Medical

• Credit Life

• Straight Life