Unit 15 Review

Match each type of automobile insurance to its definition.

• 
  collision

• 
  This protection will cover repairs to your vehicle if you are in a car accident.

• 
  comprehensive

• 
  This protection covers you if you are in an accident and you are determined to be at fault. It covers property damage and medical bills.

• liability

• 
  This protection will cover you in non-accident-related issues such as hitting a deer or theft.

IN AUGUST you are playing volleyball and you collide with one of your teammates. You twist your knee and are rushed to the emergency room. At the hospital, they take X-rays, consult a knee specialist, and give you a brace for your knee.

You pay a $100 co-pay at the time of service, and the ER bills your insurance company for the rest. The total hospital bill is $4,580.

The table below shows the payment structure for your health insurance policy.

What is the total amount that you will have paid?

Include your monthly insurance premiums through August, the ER co-pay, and the deductible.

• $2,200

• $100

• $5,000

• $4,680

Suppose you borrow $32,000 at 15% APR for a 12-year term to be paid monthly. Your monthly payment is $592.85. How much of the first payment goes toward interest?

• $400.00

• $592.85

• $192.85

• $88.93

Suppose you borrow $32,000 at 15% APR for a 12-year term to be paid monthly. Your monthly payment is $592.85. How much of the first payment goes toward PRINCIPAL?

• $400.00

• $192.85

• $592.85

• $92.85

Suppose a light pole falls on your house during a storm and causes $8,000 worth of damage to your garage. The premium for your homeowner's insurance is $200/month, and your deductible is $7,000 with an out-of-pocket maximum of $15,000. If this event is a covered event, how much will you need to pay a contractor for the repairs?

• $15,000

• $8,000

• $7,000

• $2,400

Suppose you own a home worth $250,000 and property taxes come due at the end of the year. If your property tax rate is 1.3%, about how much should you set aside each month to be prepared to pay this bill at the end of the year?

• $271

• $3,250

• $2,500

• $250

Suppose you own a home worth $190,000 and your property taxes will be due in 7 months. So far, you have not saved anything for your taxes. If your property tax rate is 1.5%, about how much should you set aside each month to be prepared to pay this bill when it comes due?

• $2,850

• $408

• $238

• $190

Which insurance covers the following scenario?

Your car is parked outside your home during a hail storm. Your car receives damages that you would like to have repaired.

• Automotive Insurance

• Homeowner's Insurance

• Liability Insurance

• Renter's Insurance

What is an executor of a will?

• 
  The person responsible for overseeing the will and making sure that everything goes to where it's supposed to.

• 
  The individual that wrote the will.

• 
  The property stated in the will that needs to be liquidated and distrubited.

• The people stated in the will that will receive the property.

Match the correct type of insurance you need for each scenario.

• 
  Homeowner's insurance

• 
  You need eyeglasses

• 
  Vision insurance

• 
  You buy a house

• 
  Auto insurance

• You have an accident in your car

• Health Insurance

• 
  You break your arm and go to the hospital for x-rays.