BUSINESS FINANCE

1. 1. Auto insurance is required by law in most states.

• TRUE

• FALSE

2. Health insurance only covers medical expenses incurred in hospitals.

• TRUE

• FALSE

3. Life insurance pays out a benefit only upon the death of the insured person.

• TRUE

• FALSE

4. Homeowners insurance typically covers damage from natural disasters like floods and earthquakes without additional coverage.

• TRUE

• FALSE

5. An insurance premium is the amount you pay for your insurance policy.

• TRUE

• FALSE

6. All insurance policies are standardized and offer the same coverage regardless of the provider.

• TRUE

• FALSE

7. A deductible is the amount you must pay out of pocket before your insurance coverage kicks in.

• TRUE

• FALSE

8. Insurance companies use risk assessment to determine premiums and coverage options for policyholders.

• TRUE

• FALSE

9. You can only file an insurance claim if you have a specific type of policy that covers the incident.

• TRUE

• FALSE

10. Once you purchase an insurance policy, you cannot make any changes to it until it expires.

• TRUE

• FALSE