Insurance Credit and Debt 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 portion of covered medical expenses you are responsible for paying after your deductible is met?

• Deductible limit

• Premium

• Out-of-network fees

• Co-insurance

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

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

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

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 in case you get into an accident with someone who does not have insurance

• Insurance if you cause injury to yourself

In general, how do insurance companies decide how much to charge an individual for their monthly premiums?

• The company assesses the individual's risk factors and assigns higher premiums to higher risk individuals

• The company looks at the individual's tax filings from the previous year to assess overall wealth and ability to pay

• The company charges the same premium for every individual eligible for coverage

• The company increases or decreases premium rates based on the stock market

Your health insurance plan has a $20 copay for certain covered prescription medications. You arrive at the pharmacist and pick up your prescription (which is covered under your plan) which has a list price of $75. How much would you pay the pharmacy?

• $0 since health insurance plans waive the cost of prescription drugs

• $20

• $55

• $75

Which of the following statements comparing credit and debit cards is TRUE?

• Far more businesses accept credit cards than debit cards

• Credit cards pull money directly from your bank account, while debit cards get their money from Visa or Mastercard

• Dedit card companies provide you with a monthly statement, while crebit cards do not

• With debit cards, you're spending your own money at point of sale, but with credit cards, you're getting a loan that you need to pay back

Which of the following is most likely to represent a fixed rate, secured debt?

• A student loan

• A credit card

• A prepaid debit card

• An auto loan