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WorksheetsPersonal Finance: Chapter 6 Review
Total questions: 32
Worksheet time: 16mins
Name
Class
Date
1.
Medicaid is a government-sponsored health insurance program for senior citizens.
a)
True
b)
False
2.
Long-term care insurance will cover the expenses involved in extended care for a young person suffering from a debilitating injury.
a)
True
b)
False
3.
With a health savings account (HSA), the balance not used by the end of the year is forfeited.
a)
True
b)
False
4.
The beneficiary is the person covered by a life insurance policy.
a)
True
b)
False
5.
Term life insurance provides a death benefit and builds a cash value.
a)
True
b)
False
6.
A universal life insurance policy allows the policyholder to change the death benefit and premiums to fit changing needs throughout the insured's life.
a)
True
b)
False
7.
An umbrella policy is so named because it provides liability coverage above that of your homeowner's and car insurance.
a)
True
b)
False
8.
Renter's insurance also protects your personal property in your car or at work.
a)
True
b)
False
9.
A stop-loss provision in your health insurance policy limits the amount your insurance will have to pay out in a give year.
a)
True
b)
False
10.
Uninsured/Underinsured motorist insurance would cover pedestrians who are injured by an uninsured motorist.
a)
True
b)
False
11.
A person suing you and possibly winning a large judgment against you is an example of
a)
personal risk
b)
risk of financial loss
c)
risk of financial resources
d)
systemic risk
12.
Self-insuring is an example of which risk strategy?
a)
risk reduction
b)
risk avoidance
c)
risk transfer
d)
risk assumption
13.
Buying insurance is an example of which risk strategy?
a)
risk reduction
b)
risk avoidance
c)
risk transfer
d)
risk assumption
14.
If your health insurance company has a $10,000 stop-loss provision, what percentage of medical expenses will it pay once you have incurred $10,000 in deductibles and copays in a year?
a)
0%
b)
50%
c)
80%
d)
100%
15.
Which of the following would NOT be covered by a regular homeowner's insurance policy?
a)
fire damage
b)
flood damage
c)
a guest's injury incurred while visiting
d)
vandalism
16.
If a visiting guest is injured in a tenant's apartment, who is responsible for the injuries?
a)
The tenant
b)
the injured guest
c)
the tenant's landlord
d)
the guest's landlord
17.
Which type of insurance coverage protects against damage to your own vehicle when you are at fault for hitting another car?
a)
liability coverage
b)
collision coverage
c)
comprehensive coverage
d)
personal injury protection
18.
Which type of health plan requires patients to choose caregivers from an approved list of independent health care providers?
a)
fee-for-service plan
b)
preferred provider org. (PPO)
c)
health maintenance org. (HMO)
d)
all of these
19.
Which type of health plan emphasizes preventative care?
a)
fee-for-service plan
b)
preferred health org. (PPO)
c)
health maintenance org. (HMO)
d)
all of these
20.
Mary was practicing the risk __ when she stopped snow skiing out of fear of breaking a leg.
a)
avoidance
b)
assumption
c)
transfering
d)
accepting
21.
__ is the process of identifying your risks and deciding how serious they are.
a)
Risk assessment
b)
Risk assumption
c)
Risk avoidance
d)
Risk acceptance
22.
A(n) ___ is the price you pay for insurance coverage.
a)
premium
b)
co-pay
c)
deductible
d)
fee-for-service
23.
The type of health care coverage that would pay for extended hospital stays is
a)
basic
b)
major medical
c)
catastrophic illlness
d)
long-term care
24.
A(n) __ plan allows patients to choose doctors and other providers for medical services without using an approved list.
a)
fee-for-service
b)
HMO
c)
PPO
d)
None of these
25.
___ coverage provides protection against damages caused by a motorist who is at fault but does not have sufficient insurance or means to pay for the full extent of your damages.
a)
uninsured/underinsured motorist
b)
collision
c)
comprehensive
d)
personal injury protection
26.
__ pays for medical, hospital, and funeral costs of the insured, the insured's family and other passengers in the insured's car in the event of an accident.
a)
personal injury protection
b)
collision insurance
c)
comprehensive insurance
d)
uninsured/underinsured protection
27.
One method of assuming risk is to ___, which involves setting aside money to be used in the event of injury or a loss of assets.
a)
self-insure
b)
assume the risk
c)
transfer the risk
d)
accept the risk.
28.
A(n) __ is an amount you must pay toward your medical expenses before your insurance begins to pay.
a)
deductible
b)
co-pay
c)
premium
d)
benefit
29.
__ is government-sponsored health insurance for people age 65 or older that is run by the Social Security Administration.
a)
Medicare
b)
Medicaid
c)
fee-for-service plan
d)
HMO
30.
Short-term disability insurance covers you for up to __ years if you are unable to work due to an injury or illness.
a)
1
b)
2
c)
4
d)
1/2
31.
All of the following are reasons why people buy life insurance EXCEPT
a)
to pay off mortgage in event of their death
b)
to provide for spouse/kids to maintain their lifestyle
c)
to provide cash value that can be borrowed later
d)
all of these are reasons to buy life insurance
32.
Which of the following is NOT a strategy for managing risk?
a)
Assuming the risk
b)
Transferring the risk
c)
Avoiding the risk
d)
Allowing the risk
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