Insurance Unit Test - Personal Finance

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

Someone broke into Sam’s car by smashing the passenger window. Which type of auto insurance coverage will help cover the cost to get the window replaced?

• Bodily injury liability

• Property liability

• Collision

• Comprehensive

Each of these is considered an "out-of-pocket" expense EXCEPT...

• 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

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

• 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

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

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

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

What type of auto insurance are you required to carry in almost every state (49 out of 50)?

• Insurance if you damage your own property

• Insurance if you cause injury to another person

• Insurance in case you get into an accident with someone who does not have insurance

Frank has an auto policy with a coverage limit of 30,000 and a deductible of 30,000 and a deductible of 30,000 and a deductible of 1,000. He gets into an accident and the damages to his car total $6,200. Fortunately, he has collision coverage. How much will Frank need to pay out-of-pocket?

• $0

• $1,000

• $6,200

• $30,000

Your employer offers an employer-sponsored health insurance plan. Which of the following statements is TRUE?

• You can only see doctors who are also employees of the same company

• Your health insurance premiums will be paid directly from your paycheck, pre-tax

• Your employer cannot fire you if you get sick or injured because you have employer-sponsored health care

• You can remain on that health insurance plan even if you switch jobs

Medicaid generally provides insurance for which of the following groups of people?

• The elderly or disabled

• Individuals in low-income households

• Anyone who wants to buy coverage from the Marketplace

• Employees who have a government position

Insurance companies make money by...

• 1. Refusing to pay out claims

• 1. Collecting money from the government 

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

• 1. Keeping costs low with minimal advertising