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Personal Finance Chapter 9: Insurance

Total questions: 22

Worksheet time: 22mins

Name
Class
Date
1.

The recipient of assets passed on

a)

Beneficiary

b)

Claim

c)

Will

d)

Liability

2.

Amount you pay in order to purchase insurance

a)

Deductible

b)

Claim

c)

Premium

d)

Out-of-Pocket Expense

3.

Amount you must pay when filing a claim before receiving any benefits

a)

Premium

b)

Deductible

c)

Out-of-Pocket Expenses

d)

Coverage

4.

The amount of protection you have through an insurance policy

a)

Beneficiary

b)

Claim

c)

Liability

d)

Coverage

5.

Which type of insurance should you not need right after high school?

a)

Renter's/Homeowner's

b)

Life

c)

Auto

d)

Health

6.

The purpose of insurance is to

a)

Make your family wealthy

b)

Invest

c)

Save for a rainy day

d)

Transfer risk

7.

Covers the damage to your own car if it is hit by another car

a)

Liability

b)

Collision

c)

Comprehensive

d)

Uninsured Motorist Protection

8.

Covers the costs of damage to another driver when you cause an accident

a)

Liability

b)

Comprehensive

c)

Collision

d)

Uninsured Motorist Protection

9.

Covers your costs if you are hit by a driver that doesn't have insurance or you are the victim of a hit and run

a)

Liability

b)

Collision

c)

Comprehensive

d)

Uninsured Motorist Protection

10.

Takes care of damage to your car not caused by a collision (fire damage, stolen vehicle, etc)

a)

Liability

b)

Collision

c)

Comprehensive

d)

Uninsured Motorist Protection

11.

The time between the disabling event and the beginning of payments in your disability coverage

a)

Deductible

b)

Out of pocket expense

c)

Stop gap

d)

Elimination period

12.

This insurance is required by law

a)

Renter's

b)

Life

c)

Auto

d)

Disability

13.

Provides for nursing homes or in-home care

a)

Disability

b)

Long-term care

c)

Health

d)

Life

14.

Provides income if you have a health condition that keeps you from working

a)

Health

b)

Disability

c)

Life

d)

Accidental death

15.

You should buy at age 60.

a)

Life

b)

Long-term care

c)

Health

d)

Disability

16.

Can be either term or cash value

a)

Life

b)

Health

c)

Long-term care

d)

Disability

17.

Increase this in order to lower your premium

a)

Coverage

b)

Claim

c)

Income

d)

Deductible

18.

Which is NOT a way to get a good deal on car insurance as a teen driver?

a)

Get good grades.

b)

Drive less.

c)

Shop around.

d)

Take a driver education class.

19.

A legally enforceable declaration of how a person wishes his property to be distributed after death

a)

Will

b)

Life insurance

c)

Beneficiary

d)

Policy

20.

Which of the following insurances should be avoided?

a)

Long term disability

b)

Homeowner's

c)

Identity theft protection

d)

Credit card protection

21.

Which of the following is the only one Dave recommends you should buy under a specific condition?

a)

Cancer Coverage

b)

Mortgage Life Insurance

c)

Credit Card Protection

d)

Prepaid Burial Policy

22.

When is the only time you should buy mortgage life insurance?

a)

If you don't qualify for life insurance.

b)

If you own your home.

c)

If you know you will die before your house is paid off.

d)

If you want to leave your house to your kids after you die.