M6L2 Insurance

What is a deductible in an insurance policy?

• A refundable deposit to the insurance company

• The amount the policyholder pays before insurance covers the rest

• The maximum amount the insurance will pay

• A discount given for safe behavior

Why might someone choose a policy with a higher premium?

• For more comprehensive coverage and lower deductibles

• To reduce the insurance company's risk

• Because of legal requirements

• For a policy with a higher deductible

What can lead to higher premium costs or difficulty finding a new policy?

• Filing multiple claims

• Having a high deductible

• Paying premiums on time

• Living in a low-risk area

How does living in an urban area with heavy traffic affect car insurance premiums?

• Decreases the premium due to better roads

• Has no effect on the premium

• Increases the premium due to higher accident risk

• Premiums are based solely on the car's value

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.5

CCSS.RI.9-10.3

CCSS.RI.9-10.5

Why is it important to carefully read insurance policies before purchasing?

• To learn about the insurance company's history

• To understand what is covered and what is not

• To compare the policy with friends' policies

• To find hidden fees

What should you do immediately after experiencing loss or damage covered by your insurance?

• Repair the damage yourself

• Document the damage and contact your insurance provider

• Discuss the event on social media for advice

• Wait for a month before reporting

Sally's health insurance policy requires her to pay the first $500 of medical costs each year before the company will pay any of her medical bills.  This policy provision is the:

• Co-insurance clause
• Premium
• Annual deductible
• Major medical benefit

Gwen receives a bill from her auto insurance company, and she sends a check to the company to make sure  her policy is not cancelled. The cost of her policy is called the:

• Co-insurance clause
• Premium
• Deductible
• Exclusion

Insurance coverage that would cover claims unrelated to an accident (you hit a deer, bad weather damages your car, your car is stolen, etc)

• liability
• comprehensive
• collision
• uninsured motorist

Tags

CCSS.RI. 9-10.2

CCSS.RI.11-12.2

CCSS.RI.8.2

CCSS.RL.11-12.2

CCSS.RL.9-10.2

When a self-employed person decides to purchase disability insurance it is generally to protect against the financial effects of not being able to work.

• financial effects of not being able to work.
• possibility of customers defaulting on their loans.

Tags

CCSS.RI. 9-10.2

CCSS.RI.11-12.2

CCSS.RI.8.2

CCSS.RL.11-12.2

CCSS.RL.9-10.2