Exam Review (Insurance)

Insurance companies make money by...

• Refusing to pay out claims to policyholders.
• Collecting money from the government.
• Collecting more in premiums than they need to pay out in claims.
• Keeping costs low with minimal advertising.

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

• You will receive a higher level of customer service and better care
• You will have a lower deductible
• You will have a higher coverage limit
• You will have a lower out-of-pocket maximum

Roland's auto insurance premium is $100 per month, his deductible is $1000, and his coverage limit is $50,000. He crashes into his own fence and mailbox, causing $2200 in damages. How much will Roland and the insurance company each pay for the accident?

• Roland will pay $100, the insurance company will pay $50,000
• Roland will pay $100, the insurance company will pay $1000
• Roland will pay $1000, the insurance company will pay $1200
• Roland will pay $1200, the insurance company will pay $1000

All of the following are typical services that will be included under a standard health insurance plan EXCEPT...

• Annual physical exams
• Ambulance and emergency room services
• Immunizations
• Vision and dental care

Karishma has a renters insurance policy with a coverage limit of $25,000. While she’s on vacation a fire breaks out, ruining $9,000 worth of possessions before the fire department puts it out. Her deductible is $500. How much will Karishma and the insurance company each pay?

• Karishma pays $0, while the insurance company pays $500
• Karishma pays $0, while the insurance company pays $9,000
• Karishma pays $500, while the insurance company pays $8,500
• Karishma pays $500, while the insurance company pays $24,500

Which of the following auto insurance coverages are you REQUIRED to carry in most states (49 out of 50)?

• Personal Injury Protection
• Collision
• Comprehensive
• Liability

If you get into an accident without having auto insurance and you are at-fault, what can happen?

• You may have to pay out-of-pocket for auto repair and possible medical bills for the person you hit.
• You will not have to pay anything at all. As long as the other person has auto insurance, then you are both covered.
• If the other person has auto insurance, they have to pay for both auto repairs, while your health insurance covers both medical bills.
• You are only responsible for the other person's possible medical bills.

If there was a flood that caused damage to your car, what kind of coverage must you have in order for the insurance company to help cover the cost of repairs?

• Liability Coverage
• Comprehensive Coverage
• Collision Coverage
• No-fault Insurance

If your car was damaged in an accident, I’ve got your back. It doesn’t matter who was at fault while driving. However, if the damage came from something besides a crash, I won’t be around to help you.

• Collision
• Liability
• Comprehensive
• Personal Injury Protection
• Uninsured/Underinsured Motorist

You are hit in an accident by another driver. At the hospital, you discover the other driver doesn’t have insurance to cover your medical bills. That’s when I kick in!

• Uninsured/Underinsured Motorist
• Liability
• Comprehensive
• Collision
• Personal Injury Protection