3rd 9 weeks Test

The number one reason risk pooling is valuable to the insurance industry is...

• It allows companies to charge the same premium to all members of the pool.

• It brings together many individuals' premiums so that there is money to cover the select few with losses.

• It makes insurance coverage available to everyone, even those who are unable to make their payments.

• It is subsidized by the federal government.

Going to an in-network doctor is a good idea, because...

• you will receive a higher quality of care.

• you will save on overall costs when compared to seeing an out-of-network doctor.

• you will get a significant tax credit for that year.

• you will always work with a primary care physician who manages your overall health.

It's a good idea to have renters insurance in case...

• Your landlord tries to evict you

• You can't afford your rent one month

• A tree on your rented property falls onto the neighbor's car

• A guest is injured while inside your apartment

How is long term disability insurance different from health insurance?

• Long term disability insurance is an extension of health insurance offered only at select hospitals.

• Health insurance is optional and long term disability is mandatory in all US states.

• Long term disability only covers the cost of healing the injury/illness, while health insurance covers a percentage of your income while you are away from work due to the injury/illness.

• Health insurance only covers the cost of healing the injury/illness, while long term disability covers a percentage of your income while you are away from work due to the injury/illness.

All of the following represent a compelling reason to pay a higher insurance premium EXCEPT...

• You will have a higher coverage limit

• You will receive a higher level of customer service and better care

• You will have a lower out-of-pocket maximum

• You will have a lower deductible

If someone gets their health insurance through Medicaid, that means...

• They earn too much money to qualify for low-income subsidies.

• Their premium is likely covered by the Federal and/or state government.

• They likely pay all of their premium and get a tax refund or credit when they file their taxes.

• They are definitely a senior citizen, since Medicaid is a government program specifically meant to help seniors.

Each of the following factors affect your monthly auto insurance premium EXCEPT...

• Your vehicle's make, model, and year.

• Your driving record.

• Your local auto shop's customer service reviews.

• Your age and marital status.

Margaret opened her mail this morning and is shocked to see her total hospital bill for her recent injury. She's worried she can't afford to pay this bill. What is the BEST thing she can do?

• Ignore the bill so that the hospital understands that she can't afford to pay it back.

• Use her credit card(s) to pay back the bill.

• Take out a personal loan to cover the cost of the bill.

• Negotiate a repayment plan in which she can pay the bill back in installments.

Ricardo was not paying attention to the flow of traffic and rear-ended the car in front of him. Both cars have damage, but he doesn't have car insurance. What will most likely happen?

• As long as the other person has auto insurance, then Ricardo is also covered.

• Ricardo will have to pay out-of-pocket for auto repair and possible medical bills for the person he hit.

• If the accident happened near a local repair shop, they might be able to fix the cars at a discounted price.

• They can split the costs: Ricardo's health insurance will cover medical bills and the person he hit will cover the vehicles' damages.

Uma's renters insurance policy has a premium of $15/month, a deductible of $1000, and a personal property coverage limit of $40,000. Her apartment is burglarized and $5,600 of possessions are stolen or destroyed. How much will Uma pay in order to replace her stuff?

• $15

• $15/month for as many months as it takes her to pay back off the $5600 (approx 370 months)

• $1000

• $5600