Quiz III Review Insurance

What is the purpose of the Affordable Care Act (ACA)?

• To provide retirement benefits to senior citizens

• To regulate the pharmaceutical industry

• To make affordable health insurance more available

• To establish a national health service

What does the term 'Premium' refer to in an insurance policy?

• The amount of liability protection offered

• The contract between an insurance company and the insured individual

• The amount of money paid for an insurance policy

• The most a policyholder has to spend for covered services in a year

What is 'Liability Insurance' primarily concerned with?

• Protection against loss from theft

• Protection against claims resulting from personal injury or property damage

• Coverage for the policyholder's vehicle in case of a collision

• Protection for the policyholder's life

What is the 'Out-of-Pocket Maximum' in an insurance policy?

• The total premium paid in a year

• The minimum coverage required by law

• The most a policyholder has to spend for covered services in a year

• The deductible amount before the insurance starts paying

What type of insurance replaces a portion of the policyholder's income if they become disabled and are unable to work?

• Health Insurance

• Disability Insurance

• Life Insurance

• Unemployment Insurance

What is the practice of employers paying for a portion of their employees' insurance premiums known as?

• Health Savings Account

• Subsidizing

• Deductible

• Identity Theft

What is the purpose of supplemental insurance?

• To provide primary insurance coverage

• To cover expenses and services not on typical policies

• To replace income in case of unemployment

• To insure against natural disasters

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

The purpose of Insurance is NOT to:

• Diversify an investment portfolio
• Share risk with other policy holders and the insurance company
• Protect assets
• Protect against potential losses

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