Concept of Insurance Quiz

The out of pocket cost to the insured, before an insurance policy pays, when a loss occurs is called...

• Premium

• Deductible

• Interest

• Compensation

The amount paid for insurance is the

• purchase price

• premium
• deductible
• policy value

If you can not work due to a health condition or injury, this type of insurance will pay you a portion of the income you lose.

• disability
• health
• long-term care

• hospitalization

In the state of Texas, this is the minimum auto insurance, required by law, that only repairs the vehicle you hit and not your own vehicle.

• Liability

• Collision

• Comprehensive

• Medical Payments

Which of the following is covered by renters insurance?

• The damage to the property caused by a storm

• Your car parked in the apartment parking lot

• Personal items the tenant owns inside the apartment

• Water damage cause by a leaky sink in your apartment

What agency oversees insurance companies within the state of Texas

• The Federal Trade Commission

• The Department of Transportation

• The Federal Insurance Commision

• The state of Texas regulates insurance companies.

What role does insurance play in personal financial planning?

• It transfers risk and protects against financial loss

• It helps build and maintain one's credit score

• It helps cover day-to-day expenses

• It helps build wealth by growing in value over time

This professional analyzes statistics and uses them to calculate risks and premiums.

• Insurance Agent

• Actuary

• Claims Clerk

• Policy Underwriter

Each of these factors impacts your insurance premium EXCEPT...

• Deductible amount

• The vehicle you are insuring

• Your credit score

• Your income

Jennifer has an auto liability policy of $20,000/$40,000/$10,000. The $10,000 covers

• Per person bodily injury

• Property damage per occurrence

• Per occurrence bodily injury limit

• Total amount of insured coverage