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Module 7: Insurance Test Review

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

The fee paid by the policyholder is called a ____.

a)

Policy

b)

Deductible

c)

Premium

d)

Face Amount

2.

Which is true about risk and insurance?

a)

The higher the risk, the higher your insurance deductible

b)

The higher the risk, the lower your insurance deductible

c)

The higher the risk, the higher your insurance premium

d)

The lower the risk, the higher your insurance deductible

3.

Which of the following can help reduce insurance costs?

a)

Increase deductibles

b)

Purchase Group Insurance

c)

Look for Discount Opportunities

d)

All of the Above

4.

If a car was damaged in a flood, which type of car insurance would typically cover the damage to the car?

a)

Universal

b)

Term

c)

Disability

d)

Comprehensive

5.

If Duncan’s car was damaged by a hit-and-run driver or a driver without insurance, how will the cost of damage be covered?

a)

Term Life Insurance

b)

Comprehensive Insurance

c)

Uninsured Motorist Coverage

d)

Duncan will have to pay

6.

Which coverage pays for injuries and damages to OTHERS only?

a)

Comprehensive

b)

Collision

c)

Personal Injury Protection

d)

Liability

7.

The ____ is the individual who will receive the benefits of a life insurance policy.

a)

Trustee

b)

Beneficiary

c)

Power of Attorney

d)

Notary Public

8.

Which type of insurance coverage would pay for damage incurred from backing into a grocery cart in a parking lot.

a)

Medical

b)

Collision

c)

Personal Injury Protection

d)

Liability

9.

A type of health insurance that allows people who have lost their jobs to continue their health care is called ______?

a)

FICA

b)

HIPPA

c)

COBRA

d)

PYTHON

10.

Which of these is insurance for a specified time only?

a)

Term

b)

Major Medical

c)

Credit Life

d)

Straight Life

11.

Which of these is considered income protection insurance?

a)

Term

b)

Cash Value

c)

Medicare

d)

Disability

12.

Social Security is considered this type of insurance?

a)

OASDI

b)

FBLA

c)

OSHA

d)

XYZ

13.

_____ is a government-sponsored health insurance for people with low incomes and limited resources.

a)

Social Security

b)

COBRA

c)

Medicare

d)

Medicaid

14.

_____ is a government-sponsored health insurance for people over the age of 65.

a)

Social Security

b)

COBRA

c)

Medicare

d)

Medicaid

15.

A person had an Apple computer that was destroyed in a fire. She was able to buy a new Apple computer because she had _____.

a)

a personal property floater with actual cash value

b)

a personal property floater replacement value

c)

a personal property floater limited risk.

d)

a deduction on her taxes

16.

Each time a person goes to the doctor, they have to pay a portion of the bill in the amount of $35 each time. This charge is referred to as their:

a)

Deductible

b)

Mutual Fund

c)

Premium

d)

Co-pay

17.

A person goes to the hospital and the bill is $10,000. The most likely reason that the person would get a bill for $1,000 is because:

a)

They have a $1,000 insurance deductible

b)

They have $1,000 net income

c)

They have a $9,000 coupon

d)

They have a $1,000 exemption

18.

By raising the deductible on car insurance coverage for collision from $200 to $400, the premium will be ______.

a)

A lower amount

b)

The same amount

c)

A different amount each month

d)

Billed monthly instead of annually

19.

The relationship between the cost of homeowners insurance and the location of the home being insured is that the premiums are:

a)

lower in neighborhoods with expensive homes

b)

lower when there are fewer homes in the neighborhood

c)

higher in neighborhoods that have natural disasters

d)

high in neighborhoods that are highly populated

20.

A 35-year-old mother of three children wants to buy a life insurance policy for herself. What will help her determine the dollar amount she needs?

a)

The amount of auto collision insurance coverage she has

b)

The health plan offered by her employer

c)

The financial resources needed by her family should she die

d)

The cost of repairing her house after a disaster