Insurance Review

What is the purpose of insurance?

• To make money for the insuree

• To cover risks and reduce financial burden

• To predict future disasters

• To fix broken objects

Which of the following is a TRUE statement about deductibles?

• They are paid annually to the insurance company

• They are paid by others who have assumed your risk

• They are paid by you before the insurance company pays

• They are paid by the insurance company before you pay

Which of these is most likely to increase your premium costs?

• Filling multiple claims with different insurance companies

• Filing a large claim after an accident totaled your car

• Filing a claim when you were hurt at work

• Filing zero claims at all

Why is it important to save money to cover your deductible in case you need to file a claim?

• The insurance company may deny your claim

• The insurance company may refund your money

• You can purchase multiple insurance policies to cover your loss

• You can opt for a higher deductible

What does liability coverage in an auto insurance policy provide?

• Coverage for the theft of your vehicle

• Coverage for your medical expenses, regardless of who is at fault

• Financial protection for damages you cause to another person’s car or property

• Reimbursement for damages to your car in a collision

Which of the following is NOT covered under collision coverage?

• Damages to your car from hitting a pothole

• Damages to your car from a collision with another vehicle

• Mechanical failure or normal wear and tear of your car

• Damage to your car from rolling over

Why might your auto insurance premium increase even if you haven’t filed a claim?

• Because the color has faded over time.

• Natural disasters and increased crime rates lead to more claims in your area

• You decided to switch your insurance provider

• Because the price of gas has increased.

Which factor does NOT generally affect your auto insurance premium?

• The deductible you select

• The type of coverage you choose

• Your driving record

• The color of your car

Why is health insurance important even for fit, young individuals?

• It is cheaper for young people

• It protects against unexpected medical costs

• It is only necessary for older individuals

• It covers gym and fitness expenses

What happens if someone without health insurance gets injured?

• They receive free medical care

• The government pays all medical expenses

• They cannot receive medical assistance

• They might face significant medical bills