Insurance Unit Review

What is the purpose of insurance?

• To avoid all financial risk

• To eliminate the need for emergency savings

• To transfer risk from yourself ot an insurance agency

• To increase your income over time

What does a premium refer to in insurance?

• The amount the insurance company pays you

• A reward for not filing any insurance claims

• The monthly or annual cost to maintain coverage

• A deductible you pay at the time of service

A deductible is:

• The amount your insurer pays after a claim

• The amount you pay out of pocket

• A type of insurance fraud

• A bonus for safe driving

Which type of insurance is required by law in most states for car owners?

• Health Insurance

• Life Insurance

• Homeowners Insurance

• Auto Liability Insurance

What does Renters Insurance cover?

• The physical building structure

• The renter's personal belongings

• The landlord's property

• Theft

Which of the following would NOT be covered by standard health insurance?

• Annual Check-Ups

• Emergency Room visits

• Over-the-counter medication

• Surgery

A beneficiary is:

• The person who sells you insurance

• The person who receives the payout from life insurance

• the government official who monitors insurance claims

• The medical provider in your health network

Why might someone choose a higher deductible?

• To avoid paying premiums

• To get lower premiums

• To receive more coverage

• To reduce out-of-pocket costs

What is the purpose of disability insurance?

• To pay for funeral costs

• To cover lost wages if you cannot work

• To pay for damages to your car

• To protect your home from flooding

If you are "underinsured," it means:

• You have no insurance

• Your insurance covers too much

• Your coverage may not fully protect you

• You are paying too much for premiums