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Insurance

Total questions: 26

Worksheet time: 22mins

Name
Class
Date
1.

Which types of insurance are most appropriate for a single, working, 24-year-old?

a)

Health insurance

b)

Disability insurance

c)

Life insurance

d)

Auto insurance

2.

What role does insurance play in financial planning?

a)

It guarantees that income and assets are protected

b)

It helps build and maintain one's credit score

c)

It helps cover day-to-day expenses

d)

It grows in value and appreciates over time

3.

The out of pocket cost to the insured when a loss occurs is called...

a)

Premium

b)

Deductible

4.

This professional analyzes statistics and uses them to calculate risks and premiums.

a)

Agent

b)

Actuary

c)

Claims Clerk

d)

Underwriter

5.

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

a)

Collision

b)

Liability

c)

Comprehensive

d)

None

6.

What factors impact the cost of your auto insurance premium?

a)

Deductible amount

b)

The vehicle you are insuring

c)

Your credit score

d)

Your income

7.

Which of the following wouldn't save you money on your auto insurance premium?

a)

Decrease your deductible

b)

Reduce or eliminate optional insurance on an older vehicle

c)

Maintain a good credit history

d)

Bundle your insurance with other policies

8.

Jennifer has an auto policy of $20,000/$40,000/$10,000. The $10,000 covers

a)

Per person bodily injury

b)

Property damage per occurrence

c)

Per occurrence bodily injury limit

d)

Total amount of insured coverage

9.

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

10.

Under current law, until what age can a child stay on their parents' health insurance?

a)

18

b)

21

c)

26

d)

29

11.

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

12.

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

a)

True

b)

False

13.
The amount paid for insurance is the
a)
closing cost
b)
premium
c)
deductible
d)
assessed value
14.
Insurance that protects your family against financial loss due to your death is
a)
coinsurance
b)
disability insurance
c)
life insurance
d)
comprehensive insurance
15.
The type of insurance that provides protection against financial loss from medical bills is called
a)
health insurance
b)
coinsurance
c)
life insurance
d)
premium
16.
The person named in a life insurance policy to receive the death benefit is called the
a)
policy holder
b)
beneficiary
c)
recipient
d)
insurance agent
17.
The type of insurance that covers damage or loss to a vehicle from fire, theft, vandalism, or hail is called
a)
term life insurance
b)
bodily insurance
c)
comprehensive
d)
collision
18.
This term pays for protection against loss of life, property, and finances.
a)
collision
b)
premium
c)
insurance
d)
deductible
19.
The amount you MUST pay out of pocket before insurance takes over is called the
a)
premium
b)
bonus payout
c)
term payment
d)
deductible
20.
If you can not work due to a health condition or injury, this type of insurance will pay you a portion of the income you lose.
a)
disability
b)
health
c)
premium
d)
hospitalization
21.
This type of insurance protects against damage to the car OR injury to persons in the car caused by a driver who carries no insurance.
a)
collision
b)
comprehensive
c)
property
d)
uninsured motorists
22.
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
23.
In which of the following scenarios will you been titled to pay the least amount of money out-­‐of-­‐pocket for medical expenses?
a)
You have no insurance.
b)
You have health insurance with a $500 deductible.
c)
You have auto insurance with a $700 deductible.
d)
You have health insurance with a $1,500 deductible.
24.
Your auto insurance policy has a $200 monthly premium and $700 deductible. What is the maximum amount you will have to pay out-­‐of-­‐pocket before your insurance covers your costs?
a)
$200
b)
$500
c)
$700
d)
$900
25.
You have an insurance policy with the terms listed below. How much should you expect to pay the insurance company each month for coverage?YOUR
INSURANCE PLAN: Premium=$300/month; Deductible=$500
a)
$200
b)
$300
c)
$500
d)
$800
26.
Which of the following typically have the highest insurance premiums.
a)
Young, inexperienced drivers
b)
Older, experienced drivers
c)
Drivers who have with safe driving records
d)
Drivers who travel long distances