Mr. Lee Types of Insurance

What is the primary purpose of insurance?

• To provide financial protection

• To increase wealth

• To avoid taxes

• To reduce expenses.

What type of insurance is primarily used to provide financial support to beneficiaries after the policyholder's death?

• Health insurance

• Auto insurance

• Life insurance

• Travel insurance

What type of insurance is designed to cover legal liabilities and damages in case of an accident?

• Health insurance

• Liability insurance

• Life insurance

• Travel insurance

Who is a Policyholder?

• A contract between the insurance company and the insured

• The risks covered under an insurance policy

• Money paid to purchase the policy

• Person who owns the insurance policy.

In a health insurance group of 100 people, what is the chance that any one person could get sick and require $10,000 in medical care?

• 0.1%

• 1%

• 10%

• 100%

How much does Louise pay in co-insurance for the remaining $4,500?

• $500

• $700

• $900

• $1,000

Fill in the blank: Louise's insurance company pays $3,600, and she pays a total of ___.

• $1,000

• $1,200

• $1,400

• $1,600

Which of the following is a source of insurance?

• Employer

• Individual

• Government

• All of the above.

Fill in the blank: Insurance can be acquired from a combination of sources, including ________.

• friends

• employer

• family

• neighbors

Which of the following is a government program that provides basic insurance as part of the social safety net?

• Social Security

• Unemployment insurance

• Hurricane Sandy

• Worker’s compensation