Intro to Insurance

What is a risk when it comes to insurance?

• A situation involving exposure to danger, harm, or loss

• The amount of money you pay each month to keep the policy active

• The "out-of-pocket" expenses when you file a claim

• The time period your policy covers

Answer explanation

A risk in insurance refers to a situation involving exposure to danger, harm, or loss, making it the correct choice.

The out of pocket cost to the insured when a loss occurs is called...

• Premium

• Deductible

Answer explanation

The correct term for the out of pocket cost to the insured when a loss occurs is called a deductible.

The amount paid (usually each month) for insurance is the...

• closing cost

• premium

• deductible

• assessed value

Answer explanation

The correct choice is 'premium' as it refers to the amount paid for insurance usually each month.

Insurance that protects your family against financial loss due to your death is

• coinsurance

• disability insurance

• life insurance

• comprehensive insurance

Answer explanation

Life insurance is the insurance that protects your family against financial loss due to your death, making it the correct choice in this scenario.

The type of insurance that provides protection against financial loss from medical bills is called

• health insurance

• coinsurance

• life insurance

• premium

Answer explanation

Health insurance provides protection against financial loss from medical bills by covering the cost of medical expenses.

The type of insurance that covers damage or loss to a vehicle from fire, theft, vandalism, or hail is called [Everything other than an auto accident]

• term life insurance

• bodily insurance

• comprehensive

• collision

Answer explanation

Comprehensive insurance covers damage or loss to a vehicle from fire, theft, vandalism, or hail, making it the correct choice in this scenario.

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

• premium

• hospitalization

Answer explanation

Disability insurance pays a portion of lost income if unable to work due to health condition or injury.

A formal request to an insurance company asking for a payment when the policyholder has an acciden, illness or injury

• emergency savings

• coverage

• claim

• employee benefits

Answer explanation

A claim is a formal request to an insurance company asking for a payment when the policyholder has an accident, illness, or injury.

Which of the following typically have the highest insurance premiums.

• Young, inexperienced drivers

• Older, experienced drivers

• Drivers who have with safe driving records

• Drivers who travel long distances

Answer explanation

Young, inexperienced drivers typically have the highest insurance premiums due to their higher risk of accidents and lack of driving experience.

What is a "quote" when it comes to insurance?

• An estimate of what premium you would pay for a certain insurance coverage plan

• The chance of something happening or not happening

• Insurance that covers you against the cost of your own medical bills

• The maximum limit on your insurance policy

Answer explanation

A quote in insurance is an estimate of the premium you would pay for a specific coverage plan, making it the correct choice.