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WorksheetsEcon-Lesson 2.3 Quiz
Total questions: 10
Worksheet time: 5mins
Name
Class
Date
1.
In insurance terms, what is it meant by sharing risk ?
a)
You're participating in risky behavior with someone else.
b)
A policyholder may not have a loss during the term of their insurance so the premium they pay goes toward covering the losses that others suffer.
c)
The insurance company pays part of the loss and you pay part of the loss.
d)
If the loss is probable, the insurance company will not cover you.
2.
What is the insurance company actually selling to the customer?
a)
A service - protection against a loss
b)
A good - a new home
c)
A service - making the customer's life risk-free
d)
A service - fixing anything that breaks
3.
Why are insurance companies interested in having many policy holders for one policy ?
a)
They feel lonely if they don't have a lot of policyholders.
b)
Many policy holders spread the risk
c)
They don't, they prefer to have few policyholders
d)
Fewer policyholders can drive down premiums.
4.
A key to the amount of __________ a person needs is the amount of additional money the survivors will need to maintain their quality of life if the insured person dies.
a)
Auto insurance
b)
Life insurance
c)
Homeowner's insurance
d)
Disability insurance
5.
If you become too sick from an illness or too injured in an accident to go to work and earn money, ______________ will help provide an income for you.
a)
Life insurance
b)
Homeowner's insurance
c)
Automobile insurance
d)
Disability insurance
6.
___________ is the amount you pay on an insurance claim before the insurance company kicks in payment.
a)
Premium
b)
Deductible
c)
Loss
d)
Coverage
7.
Which plan is better for Nelson to purchase? Nelson is a single adult, with no existing medical conditions, and lives on a tight budget.
a)
Option A: $1000 deductible/ $41.95 monthly premium payments
b)
Option B: $5000 deductible/ $29.95 monthly premium payments
c)
Option C: $3000 deductible/ $35.95 monthly premium payments
d)
Nelson should not purchase health insurance.
8.
Which of the following is not covered under your automobile insurance?
a)
Loss from theft
b)
Loss from an accident where you were at fault
c)
Coverage for medical bills that arise from a claim
d)
The purchase of new tires for the vehicle
9.
A __________ refers to the basis for your insurance claim. It can be from death, injury, or illness.
a)
policy
b)
coverage
c)
loss
d)
premium
10.
The amount you are charged for your premium can depend on all of the following expect:
a)
driving record
b)
years driving
c)
type of vehicle you are insuring
d)
religious preference
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