Insurance Quiz

What is an insurance premium?

• Your monthly payment to your insurer, regardless of whether you use any services

• A list of the procedures covered by your insurance carrier

• An added cost you pay in order to receive higher-quality services

• The amount you pay out-of-pocket for a specific procedure or service

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 each year

• Keeping costs low with minimal advertising

Which of the following statements is TRUE about auto insurance premiums?

• If you have an auto insurance policy and don't get into a car accident or file any claims for a year, you get your premiums back from the insurance company

• If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will decrease

• Auto insurance premiums are a fixed price across all insurance companies

• If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will increase

Someone broke into Sam's car by smashing the passenger window. Which type of auto insurance coverage will help cover the cost to get the window replaced?

• Bodily injury liability

• Property liability

• Collision

Frank has an auto policy with a coverage limit of $30,000 and a deductible of $1,000. He gets into an accident and the damages to his car total $6,200. Fortunately, he has collision coverage. How much will Frank need to pay out-of-pocket?

• $0

• $1,000

• $6,200

• $30,000

Each of these is considered an "out-of-pocket" expense EXCEPT...

• Your monthly premium

• A copay of $15 to fill a prescription

• A $1000 deductible if you're in an auto accident

• Excess bills from a car accident once you've gone over your maximum coverage limit

Medicaid generally provides insurance for which of the following groups of people?

• The elderly or disabled

• Individuals in low-income households

• Anyone who wants to buy coverage from the Marketplace

• Employees who have a government position

Your employer offers an employer-sponsored health insurance plan. Which of the following statements is TRUE?

• You can only see doctors who are also employees of the same company

• Your health insurance premiums will be paid directly from your paycheck, pre-tax

• Your employer cannot fire you if you get sick or injured because you have employer-sponsored health care

• You can remain on that health insurance plan even if you switch jobs

What type of auto insurance are you required to carry in almost every state (49 out of 50)?

• Insurance if you damage your own property

• Insurance if you cause injury to another person

• Insurance in case you get into an accident with someone who does not have insurance

• Insurance if you cause injury to yourself

Your parents tell you that on your 22nd birthday, they would like for you to get your own health insurance. You are very healthy, are not taking any prescription medicines, and generally only see your doctor for your annual physical. What type of health insurance is likely to be best for you?

• A low deductible plan with a high monthly premium

• A high deductible plan with a low monthly premium

• Your parents MUST keep you on their plan. They cannot legally remove you.

• You do not need health insurance because you are healthy