Insurance Quiz

The six categories of insurance are auto, home, health, life, disability, and renters.

• True

• False

After losing her husband to a heart attack, a wife is left alone to care for children. Her husband's ______ insurance will cover the funeral costs and provide money for the wife and children.

• auto

• home

• health

• life

A contract between the insurance company and the insured that states the exact terms of the contract, including what risks are covered and how much will be paid for any losses is a(n):

• Contract

• Claim

• Deductible

• Policy

(a)   insurance provides payment to renters to cover the damage and loss of property in a rental unit.

The primary purpose of life insurance is:

• to provide income if the insured is disabled

• a means of investing.

• a means of saving.

• protection against financial loss associated with the loss of a loved one.

Last night you had brake failure, hit a telephone pole and caused damage to the front of the car. What type of auto insurance will cover this?

• Liability

• Collision

• Comprehensive

• None of these

You get pulled over and receive a speeding ticket on your way to the mall. What type of insurance will cover this?

• Liability

• Collision

• Comprehensive

• None of these

You hurt your back and are unable to return to work for 6 months. What type of insurance will cover the loss of income for those months you cannot work?

• Health

• Life

• Disability

• None of these

Your car is stolen and vandalized. What type of auto insurance will cover this?

• Liability

• Collision

• Comprehensive

• None of the above

Which of the following best describes the benefits of having insurance?

• The policyholder may become better off financially if an accident occurs

• Insurance combined with emergency savings provides a sense of financial security

• The policyholder no longer has to worry about paying for financial losses resulting from an accident because all risk of financial loss is transferred to the insurance company

• All of these