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Risky Business - Insurance

Total questions: 20

Worksheet time: 7mins

Name
Class
Date
1.

Premium

a)

a policyholder's request for payment for a loss

b)

the amount the policyholder must pay for insurance coverage

c)

the possibility of incurring a loss

d)

the profit made from insurance

2.

A policyholder is

a)

Another term for an insurance company

b)

The person or company buying the insurance policy

c)

The amount paid for insurance coverage

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.
Insurance that protects your family against financial loss due to your death is
a)
coinsurance
b)
disability insurance
c)
life insurance
d)
comprehensive insurance
6.
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
7.
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
8.

A formal request to an insurance company asking for a payment when the policyholder has an accident, illness or injury

a)

emergency savings

b)

coverage

c)

claim

d)

employee benefits

9.
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
10.

According to the Affordable Care Act, children can be on their parents' health insurance until what age?

a)

Until they get a full time job

b)

22

c)

26

d)

28

11.

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

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.

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

a)

True

b)

False

14.
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
15.
This term pays for protection against loss of life, property, and finances.
a)
collision
b)
premium
c)
insurance
d)
deductible
16.
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
17.

The total amount a policy holder will pay in one fiscal year...

a)

Policy Maximum Fee

b)

Deductible

c)

Maximum Out of Pocket Expense

d)

Total Beneficiary Expense

18.

An employee of the insurance company that determines premium amounts.

a)

Actuary

b)

Underwriter

c)

Undertaker

d)

Insurance Agent

19.

The purpose of insurance is

a)

Transfer risk

b)

Enable government funds

c)

Ensure spending plan balances

d)

Create a financial safety net

20.

If you pay a higher deductible, this generally ______ your premium.

a)

has not effect on

b)

raises

c)

lowers