Insurance Basics Quiz

Emma is considering purchasing auto insurance. Which of the following is NOT true about auto insurance?

• It covers damages to your car.

• It is optional in all states.

• It can include liability coverage.

• It may cover medical expenses.

Maya has an insurance policy and she makes a regular payment to the insurer. This regular payment is called a _____.

• Deductible

• Premium

• Claim

• Benefit

Mia is shopping for car insurance. The cost of the fee she pays the insurance company is based on her insurability, or perceived level of _____.

• Risk

• Safety

• Coverage

• Deductible

Adriana was driving her car when she was hit by another vehicle. The driver of the other car had insurance, but it wasn't enough to cover all the medical expenses. Which of the following best describes the type of coverage that would help Adriana in this situation?

• It covers damage to your vehicle.

• It pays for injuries caused by an uninsured driver.

• It covers routine maintenance costs.

• It pays for injuries caused by an underinsured driver.

Zyian is looking for a way to save money on his health-related expenses. He wants a plan that allows him to put pre-tax money into a savings account specifically for these expenses. Which type of plan should he consider?

• A) HMO

• B) PPO

• C) HSA

• D) FSA

Daeshaun is reviewing his property insurance policy. Which of the following perils are typically included in basic coverage?

• Fire

• Flood

• Earthquake

• War

Eric has the most advanced property insurance. It covers anything except power failure, flood, and nuclear hazard. What type of property insurance does Eric probably have?

• Basic

• Broad

• Special

• Comprehensive

What type of property insurance should Daeshaun get to ensure he can get money to replace or repair the ring if it ever gets lost, broken, or stolen?

• A) Liability

• B) Personal Property

• C) Comprehensive

• D) Special

Tyler is moving into his first apartment and purchased renter's insurance. Which of the following will be covered by his policy?

• The building structure

• Personal belongings

• Flood damage

• Earthquake damage

As a lawyer, Michele is more likely to be sued for mistakes or negligence of information than her friend that is a waiter. For this reason, Michele is considering purchasing _____ insurance.

• Professional Liability

• Personal Liability

• Property

• Health