Insurance Unit Final Exam

The _______________ provides & sells insurance while the ________________ negotiates on behalf of the insurer.

• Insurance, insurance agent

• Insurance company, insurance policy

• Insurance agent, insurance policy

• Insurance company, insurance agent

If you rent your house, you’ll need to get homeowner’s insurance.

• True

• False

Which type of insurance gives you extra coverage once your primary insurance limit is met?

• Disability Insurance

• COBRA

• Umbrella Insurance

• Long Term Care Insurance

Which term below represents the total amount of money you would have to pay with insurance.

• Out-Of-Pocket

• Claim

• Deductible

• Premium

If you are impacted by an illness or injury and cannot work, this insurance will help cover your income.

• Long Term Care Insurance

• Disability Insurance

• Health Insurance

• Life Insurance

Which type of insurance is made mandatory by law in most US states?

• Car Insurance

• Renter’s Insurance

• Life Insurance

• Health Insurance

Homeowner’s insurance covers 3 categories of claims.

• True

• False

A similarity of short term and long-term disability insurance is that they both…

• d. Cost 1-3% of your yearly income

• Pay out after 2 weeks confirmation

• Last 1 year

• Cover 60-70% of your salary

If you find yourself being older with illnesses and realize you don’t have a life insurance policy, which type of life insurance will you be able to get?

• Term Life

• Whole Life

• Variable Life

• Guaranteed Life

Henry was in a car accident. Repairs to his car will cost $3,000. On his policy, the deductible is $800. How much is Henry responsible for paying towards the car repair.

• $2,200

• $800

• $3,000

• None he has car insurance