Insurance Quiz

The purpose of insurance is to ________.

• Shift financial liability
• Make money
• Protect us from overwhelming expenses that can happen if not insured
• Shift financial risk

Which of the following best describes an insurance deductible?

• The money paid for an insurance policy
• The percentage share the insurance company pays when it pays out a claim
• The portion of a claim that a person must pay before her insurance company contributes
• An additional provision purchased separate of a traditional policy to add coverage

Which of the following best describes coinsurance?

• The money paid for an insurance policy
• The percentage the insurance company pays (or shares) when it pays out a claim
• The portion of a claim that a person must pay before his insurance company contributes
• An additional provision purchased separate of a traditional policy to add coverage

Which of the following best describes an insurance rider?

• The money paid for an insurance policy
• The portion of a claim that a person must pay before her insurance company contributes
• The percentage share the insurance company pays when it pays out a claim
• An additional provision that is often purchased on top of of a traditional policy to add coverage

If a person causes an accident, liability insurance covers her medical and auto expenses as well as the other person’s.

• True
• False

Comprehensive insurance covers damage as a result of a non-accident like vandalism, hitting a deer, or a storm.

• True
• False

What will collision insurance cover in the event of an accident?

• Damage to someone else’s car
• Damage to your car
• Damage to someone else’s property
• Bodily injuries

When is it ok not to have health insurance (if ever)?

• If you are young and healthy.
• You should always have health insurance.
• If you do not have a full time job.
• If you are a student under the age of 26.

How can insurance protect you from financial loss?

• Insurance can cover you or your property in case of an accident, theft, or another unpredictable event.
• Insurance can offer easy monthly payment options for premiums.
• Insurance can offer low co-insurance policies.
• Insurance can offer warranties on household items.

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