Insurance Review

The primary purpose of having insurance is to

• be able to drive legally

• limit financial risk

• prevent accidents from happening

• protect things from damage

When a situation requiring insurance coverage occurs, the policyholder must submit a

• claim

• co-pay

• policy

• premium

The cost to repair your car from an accident is $5,000 and your deductible is $500. How much will you pay for the repair?

• Nothing, insurance covers it.

• $500

• $4,500

• $5,000

Weather damage to a car can be covered by

• collision

• comprehensive

• property damage

• uninsured / underinsured

The amount of money paid monthly, semi-annually, or yearly to have an insurance policy.

• claim

• co-pay

• deductible

• premium

You accidentally back into your neighbors fence. Which type of insurance will pay for the fence repair?

• collision

• comprehensive

• medical payments

• property damage

The relationship between premiums and deductibles is that

• They are both paid by the insurance company.

• They increase or decrease together.

• When one is high, the other is low.

• Deductibles come before premiums.

Before an insurance company will pay anything, the policyholder must pay his/her

• claim

• co-insurance

• deductible

• liability

Which of the following types of insurance is required in Illinois?

• collision

• comprehensive

• medical payments

• property damage

Your roof repair from a storm costs $10,000, and your deductible is $2,500. How much will your insurance company pay for the roof repair?

• $0

• $2,500

• $7,500

• $10,000