12/5 Practice for Unit test. Insurance

What is an insurance premium?

• A list of the procedures covered by your insurance carrier

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

• 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

When setting your premium, your car insurance company may consider each of the following EXCEPT...

• How many miles you drive per year

• your age

• Your driving record

• Your height

Percentage of covered medical expenses you are responsible for paying after your deductible is met?

• Co-insurance

• Out-of-network fees

• Premium

• Deductible limit

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

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

• 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

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

How many days are there in a year?

• 236
• 548
• 344
• 365

Your car insurance policy costs $30/month and has a $800 deductible. Someone backed into your car causing $500 of damage. How much would your insurance company pay?

• 0

• $500

• $30

• $800

Medicaid is insurance for

• Everyone

• Elderly or disabled

• People with low income

How do insurance companies decide how much to charge an individual for their monthly premiums?

• The company assesses the individual's risk factors and assigns higher premiums to higher risk individuals

• The company increases or decreases premium rates based on the stock market

• The company looks at the individual's tax filings from the previous year to assess overall wealth and ability to pay

Your health insurance plan has a $5 copay for certain covered prescription medications. You arrive at the pharmacist and pick up your prescription (which is covered under your plan) which has a list price of $25. How much would you pay the pharmacy?

• $5

• $25

• $0

A contract between the insurance company and the insured that states the exact terms including what risks are covered is a(n)?

• premium
• policy
• agent
• deductible