Insurance Principles Quiz

Which of the following is a reason that insurance is a good investment?

• Provides financial security and peace of mind

• Provides 100% reimbursement for all car accidents

• Can be used as a savings account when you don’t have accidents

• Can ensure that unexpected events do not occur for you

Which of the following is a true statement on a deductible amount?

• If increased will increase the premium.

• Mandated by state law.

• Not paid by the insurance company.

• The person at fault will pay.

If you have an accident resulting in $2,000 damage to your car and have $500 deductible collision coverage, which of the following statements is true?

• You and your insurance company will split the $2,000 damage, each paying $1,000.

• You will pay the first $500 and your insurance company will pay $1,500.

• Your insurance company will pay $2,000.

• You will pay $1,500.

Which of the following would pay for medical care for other people who were injured in your automobile as a result of an accident that was your fault?

• Collision

• Comprehensive

• Medical payments

• Bodily injury insurance

Which of the following are auto insurance rates are based on?

• Whether you keep your car in the garage or not.

• Your driving record.

• How well you maintain your vehicle.

• The condition of your vehicle.

Which of the following would be considered the most high-risk driver?

• Nineteen year old male

• Twenty-eight year old male

• Twenty-eight year old female

• Nineteen year old female

Which of the following is true of renter's insurance?

• It covers only your belongings.

• It will not cover the cost of replacing items lost in a fire.

• It can be expensive, so only get it if you have expensive property to insure.

• You need renter's insurance to cover the building in which you live.

Which of the following types of insurance would cover costs associated with injuries resulting from someone falling on your property?

• Property Insurance

• Liability Insurance

• Health Insurance

• Comprehensive Insurance

Which of the following is a common strategy used by companies to offer health insurance, since health insurance is expensive?

• Employers pay for the entire cost as an employee benefit.

• The government along with the employer helps to subsidize employee health insurance costs.

• Employers share the cost of the health insurance with the employee.

• Employees are usually required to pay the entire cost of the insurance.

Which type of managed care plan only pays for visits to certain doctors or medical facilities?

• Indemnity health plans

• Health maintenance organizations

• Preferred provider organizations

• Preferred network organizations