Insurance Test

What role does insurance play in financial planning?

• It guarantees that income and assets are protected

• It helps build and maintain one's credit score

• It helps cover day-to-day expenses

• It grows in value and appreciates over time

A stone hits your windshield. Which type of coverage would likely cover this expense?

• Collision

• Liability

• Comprehensive

• None

Which of the following wouldn't save you money on your auto insurance premium?

• Decrease your deductible

• Reduce or eliminate optional insurance on an older vehicle

• Maintain a good credit history

• Bundle your insurance with other policies

Your health insurance copay is

• Amount paid out of pocket before your insurance coverage

• Paid by the insurer

• Applied on an annual basis

• A fixed amount of money you pay each time you use your plan

True or False: Insurance is based on the concept of shared risk, or risk pooling.

• True

• False

Someone who receives money if an insured person dies

• claim
• beneficiary
• dependent
• employee benefits

An unexpected death of a family member occurs and results in funeral expenses

• Long-term care Insurance
• Disability Insurance
• Life Insurance
• Liability Insurance

Your house is destroyed by a tornado and you need to rebuild it.

• Homeowners Insurance
• Renters Insurance
• Life Insurance
• Liability Insurance

You hit a deer with your car and it needs to be repaired

• Liability Insurance

• Comprehensive Insurance

• Collision Insurance

• Life Insurance

Food poisoning sends you and your family to the emergency room.

• Liability Insurance
• Disability Insurance
• Life Insurance
• Health Insurance