Unit 7 Insurance

The federal agency that oversees insurance companies is

• The Federal Trade Commission

• The Department of Transportation

• Insurance companies are regulated on a state-by-state basis

The out of pocket cost to the insured when a loss occurs is called...

• Premium

• Deductible

• Bank Statement

What factors impact the cost of your auto insurance premium? (hint: choose 2 correct answers)

• The vehicle you are insuring

• Your Age

• How much money you make

Which of the following would be covered under a renter's insurance policy?

• Medical bills of another person who is injured on the property

• Your Car Payment

• A shed that is not attached to the house

The purpose of insurance is to…

• build wealth

• transfer risk

• build relationships

Piper is willing to pay a high premium for their disability insurance. What are the likely outcomes of paying that higher premium?

• They receive a low deductible and a high coverage limit

• They receive a low deductible and a low monthly payment

• They receive a low deductible and a high risk assessment

In general, the ( more ) your car is worth, the ( more )  you’ll pay to insure it.

• True

• False

In general, the ( less ) your car is worth, the ( less )  you’ll pay to insure it.

• Ture

• False

You pay more for insurance coverage if you drive a lot because…

• The more time you spend on the road the more miles your car will have.

• The more time you spend on the road, the more likely you are to have road rage.

• The more time you spend on the road, the more likely you are to be in an accident

One speeding ticket can raise your auto insurance rate by nearly…

• 5%

• 30%

• 55%