Quiz Unit 7.Insurance basics

What is a copayment?

• A type of insurance policy

• A legal document for estate planning

• An out-of-pocket expense paid by an insured for covered services

• A financial safety net for unexpected expenses

What does a deductible refer to in insurance terms?

• The amount paid by the insurer before a claim

• The amount paid by the insured before a claim

• The monthly premium for an insurance policy

• The total coverage amount of an insurance policy

What is the purpose of disability insurance?

• To cover medical expenses

• To replace income lost while an individual is unable to work

• To provide a financial safety net for unexpected expenses

• To insure property against damage

What is an emergency fund?

• A type of insurance policy

• Money set aside for unexpected expenses

• A legal document for estate planning

• A premium paid to an insurer

What does health insurance provide?

• Payment for most medical and surgical expenses

• Coverage for property damage

• A legal document for estate planning

• A financial safety net for unexpected expenses

What is identity theft?

• A type of insurance policy

• The crime of obtaining personal information to commit fraud

• A legal document for estate planning

• A financial safety net for unexpected expenses

What is the purpose of an insurance policy?

• To provide a financial safety net for unexpected expenses

• To outline the types of losses covered and conditions agreed upon

• To replace income lost while an individual is unable to work

• To insure property against damage

What does life insurance provide?

• Coverage for property damage

• Payment for most medical and surgical expenses

• Death benefit to beneficiaries

• A financial safety net for unexpected expenses

What is the role of a policyholder?

• To pay premiums in exchange for coverage

• To provide legal advice

• To manage an individual's financial situation

• To replace income lost while an individual is unable to work

What is a premium in insurance terms?

• A legal document for estate planning

• The purchase price or monthly payments required by an insurer

• A financial safety net for unexpected expenses

• A type of insurance policy