Insurance Unit Test

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

Which term refers to the percentage of covered medical expenses you are responsible for paying after your deductible is met?

• Deductible limit
• Premium
• Co-insurance

Insurance companies make money by...

• Refusing to pay out claims to policyholders
• Collecting more in premiums than they need to pay out each year
• Keeping costs low with minimal advertising

Which of the following statements is TRUE about auto insurance premiums?

• If you have an auto insurance policy and don't get into a car accident or file any claims for a year, you get your premiums back from the insurance company
• Auto insurance premiums are a fixed price across all insurance companies
• If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will increase

Someone broke into Sam’s car by smashing the passenger window. Which type of auto insurance coverage will help cover the cost to get the window replaced?

• Property liability
• Collision
• Comprehensive

Frank has an auto policy with a coverage limit of $30,000 and a deductible of $1,000. He gets into an accident and the damages to his car total $6,200. Fortunately, he has collision coverage. How much will Frank need to pay out-of-pocket?

• $1,000
• $6,200
• $30,000

Each of these is considered an "out-of-pocket" expense EXCEPT…

• Your monthly premium
• A copay of $15 to fill a prescription
• Excess bills from a car accident once you've gone over your maximum coverage limit

Medicaid generally provides insurance for which of the following groups of people?

• The elderly or disabled
• Individuals in low-income households
• Employees who have a government position

Your employer offers an employer-sponsored health insurance plan. Which of the following statements is TRUE?

• You can only see doctors who are also employees of the same company
• Your health insurance premiums will be paid directly from your paycheck, pre-tax
• You can remain on that health insurance plan even if you switch jobs

What type of auto insurance are you required to carry in almost every state (49 out of 50)?

• Insurance if you damage your own property
• Insurance if you cause injury to another person
• Insurance if you cause injury to yourself