Insurance Concepts Worksheet

What is an insurance premium?

• Your monthly payment to your insurer, regardless of whether you use any services

• A list of the procedures covered by your insurance carrier

• An added cost you pay in order to receive higher-quality services

• The amount you pay out-of-pocket for a specific procedure or service

Which term refers to an arrangement where you are responsible for paying a percentage of covered medical expenses after your deductible is met?

• Deductible limit

• Premium

• Out-of-network fees

• Co-insurance

Which of these is NOT considered an "out-of-pocket" expense?

• Your monthly premium

• A copay of $15 to fill a prescription

• A $1000 deductible if you're in an auto accident

• Excess bills from a car accident once you've gone over your maximum coverage limit

When setting your premium, your car insurance company may consider each of the following EXCEPT...

• How many miles you drive per year

• Your age

• Your driving record

• Your height

Insurance companies make money by...

• Refusing to pay out claims to policyholders

• Collecting money from the government

• Collecting more in premiums than they need to pay out each year

• Keeping costs low with minimal advertising

Which of the following statements is TRUE about auto insurance premiums?

• 1. Auto insurance premiums are a fixed price across all insurance companies.

• 
  Auto insurance premiums can vary from company to company, therefore, it is important to comparison shop for the best price and coverage.

• 
  If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will decrease.

• 
  If you have an auto insurance policy and don't get into a car accident or file any claims for a year, you get your premiums back from the insurance company.

• $0

• $200

• $800

• $1,000

Why would someone choose to get long term disability insurance even if they already have health insurance?

• Long term disability only covers medical bills, while health insurance will help compensate for lost work with 40-60% of their income.

• Long term disability insurance plans can also extend coverage to family members and pets.

• Health insurance only covers regular check ups, while long term disability insurance also covers emergencies.

• Health insurance only covers medical bills, while long term disability will help compensate for lost work with 40-60% of their income.

While parked on the street overnight, the passenger window in Sam's car was smashed by someone trying to break in. Which type of auto insurance coverage will help cover the cost to get the window replaced?

• Liability

• Collision

• Comprehensive

• None. Typically this type of damage isn’t covered in an auto policy.

Since doctors only accept specific health insurance plans, what should you do prior to selecting your own health insurance plan?

• Find an out-of-network doctor for a plan you’re interested in

• Check the list of doctors “in the network”

• Increase your premium amount to upgrade your coverage to include any and all doctors

• Decrease your co-pay amount