Insurance Premium Quiz

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

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

• Deductible limit

• Premium

• Out-of-network fees

• Co-insurance

When setting your premium, your car insurance company may consider each of the following EXCEPT...

• How many miles you drive per year

• Your age

• Your driving record

• Your height

Insurance companies make money by...

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.

• If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will decrease.

• 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.

Your renter's insurance policy costs $20/month and has a $1,000 deductible. A thief breaks into your apartment and steals your $800 TV set. How much would your insurance company pay?

• $0

• $200

• $800

• $1,000

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?

• Bodily injury liability

• Property liability

• Collision

• Comprehensive

Why would someone choose to get long term disability insurance even if they already have health insurance?

• Long term disability only covers medical bills, while health insurance will help compensate for lost work with 40-60% of their income.

• Long term disability insurance plans can also extend coverage to family members and pets.

• Health insurance only covers regular check ups, while long term disability insurance also covers emergencies.

• Health insurance only covers medical bills, while long term disability will help compensate for lost work with a percentage of their income

You cause an accident and injure the other driver. The case goes to trial and there is a verdict to compensate the injured person with $58,000. You have a $75,000 coverage limit per person for Bodily Injury. How much will the insurance company pay?

• $0

• $17,000

• $58,000

• $75,000

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?

• $0

• $1,000

• $6,200

• $30,000