Insurance considerations - KA5 Part C

Which of the following is not a type of personal insurance?

• House Insurance

• Life Insurance

• Home Contents Insurance

• Business Interruption Insurance

Which of these house insurance policies would provide cover up to a set dollar amount which is stated in the policy?

• Open-ended Replacement Cover

• Sum-insured Replacement Cover

• Contents Cover

• Indemnity (Market Value) Cover

EQCover provides cover against which of the following?

• Earthquakes

• Electrical equipment failure

• Travel-related accidents

• Pets

What is third party motor vehicle cover?

• It protects my vehicle, but not someone else’s.

• Insurance which covers damage to other people’s property.

• A comprehensive type of coverage for my vehicle.

• Insurance to cover damage caused to your vehicle by other parties.

Why may it be a good reason to get comprehensive motor vehicle insurance?

• It coves drivers of all ages, regardless of whether they have a licence.

• It is the lowest cost insurance option available for cars.

• It will include comprehensive, free tests on the safety of your car.

• It provides coverage for your car for a wide variety of situations.

Which of the following will not affect your car insurance premium?

• Type of car

• Your age

• Whether you wear glasses when driving

• Your gender

What is income protection insurance?

• A type of insurance policy which provides cover for situations in which someone is unable to work and thus unable to earn an income.

• A type of insurance policy that protects your theft of income earned.

• A type of insurance that protects against unexpected increases in your income.

• A type of insurance that gets less expensive if you work in a high-risk job.

What is not an alternative or supplement to income protection insurance?

• Paid sick leave

• Life insurance

• Annual leave

• ACC

Why is it important to understand how terms such as disability, illness, and accident are defined

in an income protection policy?

• So I can work out the situations in which the insurer will not make payment.

• So I can avoid the type of illness or disability that is discussed in the policy.

• So I know when to take paid sick leave.

• So I know how to protect myself against each of these factors.

When getting life insurance, who gets the pay-out upon the death of the person insured?

• The bank

• The policy holder

• The insurance company

• The spouse of the person insured