Font size
WorksheetsBasics of Insurance
Total questions: 10
Worksheet time: 14mins
Your auto insurance policy has a $3,500 deductible. Unfortunately, you get into a car accident that will cost $5,000 to repair. How much do you have to pay?
$5,000
$1,500
$3,500
$1,000
Your auto insurance policy has a $1,800 deductible. Unfortunately, you get into a car accident that will cost $1,275 to repair. How much do you have to pay?
$525
$1,275
$750
$1,800
Would a young healthy person pick a health insurance policy with a low premium and high deductible, or a high premium and low deductible?
low premium and high deductible
high premium and low deductible
John has a history of reckless driving, but he is wealthy enough to own several cars. Paul has a perfect driving record, but he can only afford to buy one car. Who is likely paying a higher premium?
John
Paul
John and Paul are likely paying the same amount
A manufacturing company can take out insurance for its factory building
True
False
Insurance can help you recover financially from unexpected events, such as... (select ALL that apply)
dropping and breaking your smartphone
breaking your arm after falling from your bike
house fire
another car hits your car in the grocery store parking lot
You need to pay the whole deductible before the insurance company begins paying for the accident
True
False
Insurance companies make money by accepting your money and taking a calculated risk that you will not experience an accident
True
False
Insurance companies make money by investing your money and pocketing any positive returns
True
False
Medicare is a form of basic health insurance provided to American citizens who reach 30 years of age or older
True
False
