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WorksheetsInsurance Unit Test
Total questions: 50
Worksheet time: 32mins
Name
Class
Date
1.
The purpose of this action is to take a specific risk, which is detailed in the insurance contract, and pass it from one party who does not wish to have this risk, the insured, to a party who is willing to take on the risk for a fee, or premium, the insurer.
a)
A. Term life insurance
b)
B. Whole life insurance
c)
C. Universal life insurance
d)
D. Transfer Of Risk
2.
A person buys a homeowner's insurance policy with a $250 deductible, which means the person will
a)
A. have to pay a quarterly premium of $250.
b)
B. have to pay the first $250 which will be deducted from the claim settlement paid by the insurance company.
c)
C. only receive payment from the insurance company of $250 for any single article damaged.
d)
D. not be responsible for the first $250 of the claimed damages.
3.
Lucy has no insurance. The situation(s) should she consider insuring against first are:
a)
A. Death so her financial obligations are paid
b)
B. Losses resulting from an illness, accident, or disability
c)
C. Property losses and auto accidents
d)
D. Auto collision, and burglary
4.
When a self-employed person decides to purchase disability insurance it is generally to
a)
A. lessen the possibility of becoming injured.
b)
B. protect against the financial effects of not being able to work.
c)
C. Separate value
d)
D. Premium or annuity value
5.
Pat has a savings account and a car loan from a not-for-profit financial institution owned by its members. She is probably a member of what type of financial institution?
a)
Commercial Bank
b)
Credit Union
6.
Collision coverage on your car insurance policy that will repair damages to your vehicle when something collides with your vehicle.
a)
Flexible expenses
b)
Fixed expanses
c)
Collision coverage
7.
A person buys a flat screen, plasma, theater-like television. The person has homeowner?s insurance. Why would it be appropriate to add a personal property floater to that insurance?
a)
To reduce the premium on the homeowner?s insurance.
b)
To protect the person who owns the television from liability for damages.
c)
To show the insurance company a good faith investment has been made.
d)
To cover the cost of replacement should the television get damaged or stolen.
8.
For the past five years, a person has had a $20,000 whole life insurance policy that has a cash value clause. The person decides to surrender the policy. At the time of surrender, the person will receive
a)
one-fifth of the $20,000 face value.
b)
$20,000 less the premiums paid.
c)
a calculated amount of money which includes the premiums paid as well as the interest on that money.
d)
a calculated amount of money that must be converted to a term life insurance policy.
9.
A woman has just received a very expensive piece of jewelry. The woman has homeowner's insurance. Which statement would it be most appropriate for her to make to her insurance agent?
a)
A. "I think I need a personal property floater."
b)
B. "I think I should get speculative risk insurance."
c)
C. "I will deduct the cost of the jewelry from my premium."
d)
D. "I realize that if this jewelry is stolen it will be considered vicarious liability."
10.
The only type of life insurance that does not develop a cash value is:
a)
A. Term life insurance
b)
B. Whole life insurance
c)
C. Universal life insurance
d)
D. Variable universal life insurance
11.
Sally took out a $50,000 life insurance policy. The $50,000 amount of coverage is called the:
a)
A. Cash value
b)
B. Premium value
c)
C. Death benefit or face value
d)
D. Annuity value
12.
___________ , a simple four letter word, is the entire reason for the existence of the insurance industry.
a)
Gold
b)
Risk
c)
Danger
d)
Loss
13.
___ is the amount of money taken out of each paycheck for insurance coverage.
a)
Medicare
b)
co-payment
c)
premium
d)
deductible
14.
A patient may have met the required amount and insurance will begin to cover, but they will only cover a specific percentage of the expense such as an 80/20.
a)
Medicare
b)
co-insurance
c)
co-payment
d)
deductible
15.
Before insurance begins to cover a patient, the ___ must be paid first, the the insurance will begin to pay.
a)
Medicaid
b)
HMO
c)
PPO
d)
deductible
16.
Before leaving the health care facility, a patient is usually responsible for a specific amount of money known as a ___ for whatever services they received, regardless of the total cost and/or insurance coverage.
a)
co-payment
b)
co-insurance
c)
deductible
d)
premium
17.
If injured on the job, __ insurance will cover treatment and reimburse lost wages.
a)
Medicare
b)
co-payment
c)
deductible
d)
workmens' compensation
18.
___ is a federal program for individuals over the age of 65, disabled for at least 2 years or ESRD.
a)
Medicare
b)
Medicaid
c)
HMO
d)
PPO
19.
Some large companies may use ___ where a contract is formed with certain health agencies to provide health care at reduced rates to employees.
a)
HMO
b)
PPO
c)
Medicaid
d)
Medicare
20.
In order to keep costs at a minimum, some employers offer which work by preventing diseases through early detection and exams.
a)
HMO
b)
PPO
c)
Medicaid
d)
Medicare
21.
The risks covered and amount of money paid for losses under an insurance policy
a)
emergency savings
b)
beneficiary
c)
claim
d)
coverage
22.
Someone who receives money if an insured person dies
a)
claim
b)
beneficiary
c)
dependent
d)
employee benefits
23.
A formal request to an insurance company asking for a payment when the policyholder has an acciden, illness or injury
a)
emergency savings
b)
coverage
c)
claim
d)
employee benefits
24.
Someone who relies on someone else for income and care
a)
beneficiary
b)
claim
c)
deductible
d)
dependent
25.
Provides payment to replace earnings during times when workers cannot work due to illness or injury
a)
disability insurance
b)
dependent
c)
emergency savings
d)
beneficiary
26.
Employers may offer employee benefits in the form of products or services that add extra value for employees beyond earned wages
a)
disability insurance
b)
employee benefits
c)
health insurance
d)
automobile insurance
27.
Provides money to pay for health care for illness, injury, or, in some cases, preventative care
a)
automobile insurance
b)
disability insurance
c)
health insurance
d)
personal insurance
28.
Insurance shifts the risk of big financial loss from the individual to the insurance company.
a)
True
b)
False
29.
Individuals can aquire insurance from a(n)
a)
Individual
b)
Employer
c)
Government Programs
d)
Combination of Sources
30.
Insurance policy that covers the "real" costs associated with replacing personal belongings, structures, and vehicles.
a)
Property
b)
Liability
c)
Life
d)
None of the Above
31.
Which type of insurance should you purchase at the age of 60?
a)
Health
b)
Life
c)
Disability
d)
Long-Term Care
32.
Which type of insurance protects against loss due to death?
a)
Life
b)
Health
c)
Disability
d)
Long-Term Care
33.
Which type of insurance rates is determined by the type of work you do?
a)
Life
b)
Health
c)
Automobile
d)
Disability
34.
Insurance coverage to protect you from damage to your car other than by collision or vehicle overturning
a)
Floater
b)
Collision
c)
Comprehensive
d)
Liability
35.
Coverage added onto an existing policy
a)
Full Coverage
b)
Overinsuring
c)
Umbrella
d)
Comprehensive
36.
Which coverage pays for injuries and damages to others only?
a)
Comprehensive
b)
Collision
c)
Personal Injury Protection
d)
Liability
37.
To ______ risk, you take measures to lessen the frequency or severity of losses that may occur.
a)
Avoid
b)
Reduce
c)
Shift
d)
Assume
38.
The possibility of a loss is called
a)
Risk
b)
Liability
c)
Insurance
d)
Hazard
39.
Raising your deductible may be a good option when it comes to lowering your premium, but it is important to do a break-even analysis before making that decision.
a)
True
b)
False
40.
Which of the following would not be a huge financial risk (and, therefore would not require insurance) if you had a full emergency fund of $500 or more?
a)
A Car Accident
b)
A lost Cell Phone
c)
Medical Emergency
d)
Stolen Identity
41.
The time between the disabling event and the beginning of payments in your disability coverage is called:
a)
Deductible
b)
Policy
c)
Elimination Period
d)
Stop Gap
42.
Applies to the amount of protection you have through an insurance company in the event of a loss
a)
Coverage
b)
Policy
c)
Claim
d)
Liability
43.
Amount you pay monthly, quarterly, semiannually or annually to purchase different types of insurance
a)
Premium
b)
Deductible
c)
Out-Of-Pocket Expenses
d)
Liability
44.
Paperwork filed with an insurance company in order to get them to cover a loss for someone they insure
a)
Policy
b)
Claim
c)
Coverage
d)
Liability
45.
Specific amount of money that you pay when insurance only covers a portion of costs
a)
Out of Pocket Expense
b)
Policy
c)
Claim
d)
Premium
46.
DOES LIFE INSURANCE COVER A TREE FALLING ON YOUR HOUSE
a)
YES
b)
NO
c)
MAYBE
d)
IF YOU ARE 17 YEARS OLD
47.
What is the main purpose of cost sharing?
a)
It reduces the cost of health insurance premiums.
b)
It prevents the providers from delivering expensive services without approval.
c)
It limits the insureds’ out-of-pocket costs.
d)
It controls the utilization of health care.
48.
Co-payment
a)
Coordination of benefits
b)
Portion of the cost of service to be paid by the insured (a set dollar amount)
c)
Term of conditions not covered by the insurance company
d)
Provider bill for service
49.
Deductible
a)
The amount of money you must pay each year before the insurance company pays anything
b)
A type of medical savings account
c)
A type of policy in which you save for emergencies
d)
A shared expense between the insured and the employer
50.
Premium
a)
Percentage of the allowed amount that is the patients responsibility.
b)
Fee paid for the health insurance coverage
c)
Purchased by an organization for the benefit of members
d)
Portion of the cost of service to be paid by the insured
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