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Insurance

Total questions: 20

Worksheet time: 19mins

Name
Class
Date
1.

Which type of insurance is likely to be the lowest priority for a single, working, 24-year-old?

a)

Health insurance

b)

Disability insurance

c)

Life insurance

d)

Auto insurance

2.

A high-deductible health plan (HDHP)...

a)

Can be paired with a flexible spending account (FSA)

b)

Can be paired with a health savings account (HSA)

c)

Has a high monthly premium

d)

Makes sense for someone who needs a lot of medical care

3.

Why might someone buy an insurance policy?

a)

To transfer financial risk to an insurer in exchange for a premium

b)

To guarantee they will never experience a financial loss

c)

To receive more money back than they pay in premiums

d)

To make the insurer responsible for preventing accidents or losses

4.

The amount of money you agree to pay towards your losses before your insurance coverage will begin paying is called...

a)

Premium

b)

Deductible

5.

You just quit your job. You are eligible for unemployment insurance.

a)

TRUE

b)

FALSE

6.

A stone hits your windshield. Which type of coverage would likely cover this expense?

a)

Collision

b)

Liability

c)

Comprehensive

d)

None

7.

Each of these factors impacts your insurance premium EXCEPT...

a)

Deductible amount

b)

The vehicle you are insuring

c)

Your credit score

d)

Your income

8.

Which of the following would INCREASE your auto insurance premium?

a)

Decrease your deductible

b)

Decrease how much you drive

c)

Increase your credit score

d)

Maintain a good driving history

9.

When buying a house, lenders typically require you to purchase homeowners insurance.

a)

TRUE

b)

FALSE

10.

A policy is a contract between the

a)

Policyholder and the injured person

b)

Driver and the government

c)

Consumer and the insurance company

d)

Consumer and the insurance agent

11.

What happens when you reach your out-of-pocket maximum?

a)

Your insurance policy is automatically cancelled

b)

You must pay a penalty fee to continue receiving coverage

c)

Your insurer covers 100% of covered expenses for the rest of the plan year

d)

Your deductible resets and you start paying out-of-pocket again

12.

Your health insurance copay is

a)

Amount paid out of pocket before your insurance coverage

b)

Paid by the insurer

c)

Applied on an annual basis

d)

A fixed amount of money you pay each time you use your plan

13.

A health savings account (HSA)...

a)

Allows you to invest the money you put in

b)

Increases your taxable income

c)

Does NOT roll over money from the previous year

d)

Allows you to withdraw money but be taxed on it

14.

Which of the following would be covered under a renter's insurance policy?

a)

Damage to the exterior of the property

b)

Medical bills of another person who is injured on the property

c)

Your roommate's personal belongings in the rental unit

d)

Damage to a detached shed on the property

15.

Medicare serves...

a)

Children

b)

Low-income adults

c)

People 65 and older

d)

Pregnant women

16.

Most Americans get healthcare through...

a)

Medicare

b)

Medicaid

c)

Direct purchase from a marketplace

d)

Their employer

17.

True or False: Insurance is based on the concept of shared risk, or risk pooling.

a)

True

b)

False

18.

Which statement is TRUE about life insurance?

a)

It pays a lump sum to your family or loved ones after you die

b)

Everyone needs life insurance, regardless of whether they have dependents

c)

The money can only cover funeral costs

d)

Life insurance is included in all healthcare plans

19.

Renters insurance is more expensive than homeowners insurance.

a)

TRUE

b)

FALSE

20.

Which insurance coverage is required by law?

a)

Homeowners insurance

b)

Auto insurance

c)

Renters insurance

d)

Disability insurance