Unit 8 Test Review - Insurance

The number one reason risk pooling is valuable to the insurance industry is...

• It allows companies to charge the same premium to all members of the pool.
• It brings together many individuals' premiums so that there is money to cover the select few with losses.
• It makes insurance coverage available to everyone, even those who are unable to make their payments.
• It is subsidized by the federal government.

Going to an in-network doctor is a good idea, because...

• you will receive a higher quality of care.
• you will save on overall costs when compared to seeing an out-of-network doctor.
• you will get a significant tax credit for that year.
• you will always work with a primary care physician who manages your overall health.

It's a good idea to have renters insurance in case...

• Your landlord tries to evict you
• A guest is injured while inside your apartment
• You can't afford your rent one month
• A tree on your rented property falls onto the neighbor's car

How is long term disability insurance different from health insurance?

• Health insurance only covers the cost of healing the injury/illness, while long term disability covers a percentage of your income while you are away from work due to the injury/illness.
• Long term disability only covers the cost of healing the injury/illness, while health insurance covers a percentage of your income while you are away from work due to the injury/illness.
• Long term disability insurance is an extension of health insurance offered only at select hospitals.
• Health insurance is optional and long term disability is mandatory in all US states.

All of the following represent a compelling reason to pay a higher insurance premium EXCEPT...

• You will receive a higher level of customer service and better care
• You will have a lower deductible
• You will have a higher coverage limit
• You will have a lower out-of-pocket maximum

Optional insurance plans, such as cell phone and pet insurance, can be useful for people who have a history of frequent visits to repair shops or vets. For folks who do not often need these services, which of the following options is the BEST alternative to these types of insurance plans?

• Trying to fix complicated issues themselves by learning online.
• Setting aside the monthly premium amount into a savings account as an emergency fund.
• Avoiding purchasing a phone or pet until they can pay for the best insurance plans.
• Bringing their phone and pet with them everywhere they go so that they can ensure that nothing unexpected happens.

If someone gets their health insurance through Medicaid, that means...

• They likely pay all of their premium and get a tax refund or credit when they file their taxes.
• They earn too much money to qualify for low-income subsidies.
• They are definitely a senior citizen, since Medicaid is a government program specifically meant to help seniors.
• Their premium is likely covered by the Federal and/or state government.

Each of the following factors affect your monthly auto insurance premium EXCEPT...

• Your vehicle's make, model, and year.
• Your driving record.
• Your local auto shop's customer service reviews.
• Your age and marital status.

What are the average MONTHLY costs for homeowners and renters insurance across the US?

• Homeowners = $15, Renters = $100
• Homeowners = $100, Renters = $15
• Homeowners = $100, Renters = $100
• Homeowners = $1200, Renters = $185

Margaret opened her mail this morning and is shocked to see her total hospital bill for her recent injury. She's worried she can't afford to pay this bill. What is the BEST thing she can do?

• Ignore the bill so that the hospital understands that she can't afford to pay it back.
• Use her credit card(s) to pay back the bill.
• Take out a personal loan to cover the cost of the bill.
• Negotiate a repayment plan in which she can pay the bill back in installments.