Insurance & Retirement

You have a $2,000 insurance claim. Your insurance company only pays $1,500. The $500 you must pay is called the

• hazard clause

• deductible

• premium

Generally, the higher deductible on an insurance policy, the

• greater the premium

• lower the premium

• more frequently the premium must be paid

• less frequently the premium must be paid

Debbie owns a store. She's concerned that an injured customer could sue her store. Which type of insurance should Debbie purchase?

• liability

• personal property floater

• life

• health

Sally's health insurance policy requires that she pay 15% of medical costs after she meets her deductible. This policy provision is the

• co-insurance clause

• annual deductible

• premium

Which of the following insurance covers expensive items, such as jewelry?

• homeowners insurance

• renters insurance

• liability insurance

• personal property floater

Insurance is frequently described as a method of "sharing the risk" because the

• insured can spread the cost over many years

• risk of loss is shared with the government

• insured shares the risk with all the other policy holders

When a self-employed person decides to purchase disability insurance it is generally to

• lessen the possibility of becoming injured

• protect against the financial effects of not being able to work

• eliminate the chance of going out of business

Lucy as no insurance. The situation(s) she should consider insuring first are:

• death so her financial obligations are paid

• losses resulting from illness, accident, or disability

• property losses and auto accidents

• auto collision and burglary

The cost of an insurance policy is called the ____.

• exclusion

• co-pay

• deductible

• premium

Jessica must first go to her primary care physician who coordinates her care. She'd need a referral to see a specialist. She pays a $10 copay whenever she sees her doctor. What type of insurance does she have?

• PPO

• managed care (HMO)

• Medicaid

• Comprehensive