Insurance Review (NGPF)

1. 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

2. Which term refers to the percentage of covered medical expenses you are responsible for paying after your deductible is met?

• Deductible limit
• Premium
• Out-of-network fees
• Co-insurance

3. 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

4. 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

5. 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

6. Your renter's insurance policy costs $20/month and has a $1,000 deductible. A thief breaks into your apartment and steals your $800 TV set. How much would your insurance company pay?

• $0
• $200
• $800
• $1,000

7. 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
• Comprehensive

8. Why would someone choose to get long term disability insurance even if they already have health insurance?

• Long term disability only covers medical bills, while health insurance will help compensate for lost work with 40-60% of their income
• Long term disability insurance plans can also extend coverage to family members and pets
• Health insurance only covers regular check ups, while long term disability insurance also covers emergencies
• Health insurance only covers medical bills, while long term disability will help compensate for lost work with a percentage of their income

9. You cause an accident and injure the other driver. The case goes to trial and there is a verdict to compensate the injured person with $58,000. You have a $75,000 coverage limit per person for Bodily Injury. How much will the insurance company pay?

• $0
• $17,000
• $58,000
• $75,000

10. 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