Insurance and Financial Literacy Quiz

What is a copayment?

• A fixed out of pocket expense paid by an insured for covered services.

• The amount of money an insured is required to pay after a claim is filed.

• A unique data trace of a user's activities.

• The preparation of tasks to manage an individual’s financial situation.

What does a deductible refer to in insurance terms?

• A fixed out of pocket expense paid by an insured.

• The amount of money an insured is required to pay after a claim is filed.

• A unique data trace of a user's activities.

• The preparation of tasks to manage an individual’s financial situation.

What is a premium in insurance terms?

• The purchase price or monthly regular payments required by an insurer.

• A legal document that gives a designated person the power to act for another person.

• A system of government programs providing financial assistance.

• A contract between an insured and an insurer.

What is a 401(k) plan?

• A type of insurance policy

• A retirement plan offered by employers

• A type of investment strategy

• A government bond

What is a bear market?

• A period of rising asset prices

• A prolonged drop in investment prices

• A type of government bond

• A method of calculating interest

What does "Collision" coverage in car insurance cover?

• Damage from natural disasters

• Physical damage to the policyholder's car from an accident

• Theft of the vehicle

• Medical expenses for injuries

What is a "Deductible" in car insurance terms?

• The total cost of the insurance policy

• The portion of losses that you agree to pay in the event of an accident

• The amount paid by the insurance company

• The monthly premium for the insurance

What does uninsured motorist coverage provide for the policyholder?

• Coverage for damages caused by natural disasters

• Coverage for medical treatment and property damages when injured by an uninsured driver

• Coverage for theft of the vehicle

• Coverage for damages caused by the policyholder

What is comprehensive coverage in car insurance?

• Coverage for damages caused by collisions

• Coverage for damages not involving a collision, such as theft or natural disasters

• Coverage for medical expenses

• Coverage for legal fees

What is the purpose of liability insurance in car insurance policies?

• To cover the policyholder's own vehicle damages

• To cover damages and injuries the policyholder causes to others

• To cover theft of the policyholder's vehicle

• To cover routine maintenance costs