Module 5 Insurance Knowledge Quiz 2025

What is the primary purpose of insurance?

• To increase personal savings

• To transfer financial risk to an insurance company

• To avoid paying for unexpected events

• To invest in the stock market

Which type of insurance provides financial support to beneficiaries after the policyholder's death?

• Health insurance

• Auto insurance

• Life insurance

• Disability insurance

Which of the following factors can affect your insurance premium?

• Age

• Marital status

• Credit score

• All of the above

What type of auto insurance is required by law in Missouri?

• Comprehensive insurance

• Collision insurance

• Liability and uninsured motorist insurance

• Full coverage insurance

What type of insurance protects against financial losses from car accidents or theft?

• Life insurance

• Auto insurance

• Renters insurance

• Health insurance

What does comprehensive auto insurance cover?

• Damage from accidents with another vehicle

• Damage from events outside your control, such as theft or natural disasters

• Injuries to passengers

• Medical expenses for the policyholder

Health insurance covers expenses such as hospital stays, medications, and surgeries.

• True

• False

Collision insurance covers damage to your car caused by theft or vandalism.

• True

• False

Renters insurance covers both personal belongings and liability for injuries in a rented home.

• True

• False

The higher your deductible, the higher your premium.

• True

• False