INSURANCE EDUCATION QUIZ

What is the main purpose of insurance?

• to follow the law

• to get weathly

• For investment purposes

• To reduce risk

This is what you have to pay before the insurance company will pay anything

• coverage

• dues

• deductible

• policy

What is an insurance premium?

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

• 1. 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

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

• 1. How many miles you drive per year

• Your age

• Your driving record

• Your height

This is the minimum required by law, only repairs the vehicle you hit, not your own

• Liability

• Collision

• Comprehensive

• Deductible

Which of the following is a way to reduce the cost of your insurance premium?

• Good grades
• Number of miles you drive
• Where you live
• All answers are correct

20. In general, how do insurance companies decide how much to charge an individual for their monthly premiums?

• 1. The company assesses the individual's risk factors and assigns higher premiums to higher risk individuals

• 1. The company looks at the individual's tax filings from the previous year to assess overall wealth and ability to pay

• 1. The company charges the same premium for every individual eligible for coverage

• 1. The company increases or decreases premium rates based on the stock market

23. A standard renters insurance policy would cover each of the following EXCEPT…

• 1. A small TV and some sneakers, stolen in a robbery

• 1. A new window when a baseball breaks the original one

• 1. A lawsuit brought when a visitor hits their head on a low hanging light fixture

• 1. A week of hotel reservations when the tenant has to move out due to fire damage

24. Finn moves from a rented apartment into his very first house. What should he expect regarding the cost of homeowners insurance compared to renters insurance?

• 1. He will not need homeowners insurance, because owning a home is less risky than renting

• 1. His homeowners insurance will be LESS expensive than his renters insurance was

• 1. His homeowners insurance will be the same cost as his renters insurance was

• 1. His homeowners insurance will be MORE expensive than his renters insurance was

2. What factor does NOT affect the cost of your auto insurance premium?

• 1. Your driving record

• 1. The make and model of your car

• 1. Your credit score

• 1. The color of your car