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WorksheetsEPF Insurance
Total questions: 50
Worksheet time: 4hrs 6mins
Liability Insurance covers accidental harm that may be caused to other people or property.
True
False
A beneficiary is the individual who takes out the life insurance policy
True
False
The purpose of insurance is to make you financially better off than you were before the event occurred.
True
False
David's mother is killed in an automobile accident. What type of insurance would provide his family financial support to cover the paid and unpaid work his mother performed?
Property and Liability
Health
Life
Disability
Workers Compensation
Sally is not feeling well so her mother takes her to the doctor. The doctor tells her she has strep throat, gives her medication, and sends her home to recover. What type of insurance would be used in this case?
Property and casualty
Health
Life
Disability
Workers Compensation
Joey's father is in a car accident and cannot work. What type of insurance replaces his father's earnings?
Property and casualty
Health
Life
Disability
Workers Compensation
How can individuals be prepared for losing their job or having a large medical expense?
Maintain a checking account with sufficient funds
Pay credit card bills on time
Prepare a budget
Save at least 6 months of income
For the past five years, a person has had a $20,000 whole life insurance policy that has a cash value clause. The person decides to surrender the policy. At the time of surrender, the person will receive:
One-fifth of the $20,000 value
$20,000 less the premiums paid
A calculated amount of money which includes the premiums paid as well as the interest on that money.
A calculated amount of money that must be converted to a term life insurance policy.
A person buys a flat screen, plasma, theatre-like television. The person has homeowner's insurance. Why would it be appropriate to add a personal property floater to that insurance?
to reduce the premium on the homeowner's insurance.
to protect the person who owns the television from liability for damages.
to show the insurance company a good faith investment has been made.
to cover the cost of replacement should the television get damaged or stolen.
A woman has just received a very expensive piece of jewelry. The woman has homeowner's insurance. Which statement would be most appropriate for her to make to her insurance agent?
I think I need a personal property floater.
I think I should get speculative risk insurance.
I will deduct the cost of the jewelry from my premium.
I realize that if this jewelry is stolen, it will be considered vicarious liability.
The only type of life insurance that does not develop a cash value is:
Term life insurance
Whole life insurance
Universal life insurance
Variable universal life insurance
Lucy has no insurance. The situation(s) she should consider insuring against first are:
Death, so her financial obligations are paid.
Losses resulting from an illness, accident, or disability.
Property losses and auto accidents
auto collisions and burglary
What is true about Renter's insurance?
It is paid by your landloard.
It is meant to cover your property against fire, theft, and personal injury.
Your lease must say that you are allowed to have renter's insurance.
it is VERY expensive.
What is the benefit of raising your deductible from $0 to $500?
Lower monthly premium.
So you can raise your monthly premium.
So you can get a new car.
So you don't have to pay anything if you have a claim.
A person has a ten-year life insurance policy. The policy will pay
the death benefit if the insured dies within the ten years.
the death benefit in the insured dies after the ten-year term.
a cash value of $250,000 at the end of ten years.
a cash value equal to the premiums paid over the 10 years.
If a person has a 20 year variable interest rate mortgage, the monthly mortgage payment is likely toL
Remain the same for the entire period of the loan.
Change several times during the period of the loan.
Increase 1% each year for the life of the loan.
Decrease 1% each year for the life of the loan.
When you have insurance, you are sharing the risk. With whom are you sharing the risk?
US Government
Your teachers
Your insurance company
your fellow insured policyholders.
What is the biggest difference between whole and term life insurance?
Whole life insurance accumulates a cash value.
Term life is more expensive than whole life insurance.
Whole life insurance does not pay a death benefit.
Term life insurance pays after the term is over.
Alyssa and Chris drive the same model and make of car and have policies with the same insurance company. Alyssa pays $200/month and has a $1500 deductible. Chris pays $300/month. What does this info tell you about Chris' deductible?
It is higher than Alyssa's deductible.
Chris has the same deductible.
It is lower than Alyssa's deductible.
There is not enough information.
Why do you need health insurance?
So you don't get sick.
So you don't have to pay to see aa doctor.
So you can get unemployment benefits.
So you don't have to pay for 100% of your medical expenses.
The premium for your car insurance depends on:
The year, make and model of the car you drive.
If you buy term or whole life insurance for your car.
How many friends you have.
From whom you purchase the car.
A person receives health insurance as an employment benefit. The insurance has a $15 co-payment. This means that at each visit to a participating doctor, the
doctor will deduct $15 from the person's bill.
doctor will charge the person's insurance company $15 for the visit.
person will be responsible for paying $15 regardless of the cost of the visit.
person will only be covered for $15 toward the cost of the visit.
Dollars paid from an insurance policy are not intended to make a person better off than before the loss happened. This concept is known as __________________
Indetermindable.
Indivisible
Indemnity
Indiscreet
a person should have an emergency savings account with deposits of at LEAST:
6 months of living expenses.
18 months of living expenses
Doable the amount of the person's annual salary.
Triple the amount of the person's salary
3-6 weeks of living expenses
Financial Planning allows individuals to
develop strategies for saving and investing.
guarantee income for retirement
avoid credit scams and identity theft
eliminate risk on investments.
You sign a year-long lease for your first apartment and gave the landlord a security deposit. Your lease is about to expire. What happens to your security deposit at the end of the lease?
The landlord gets to keep it even if you left everything clean and in order.
It gets pro-rated for every month you have been in the lease.
You get it back, minus any repairs the landlord has to make.
It is automatically deposited in you bank account at the end of the lease.
As teenagers, your spending is a big part of our economy. You need to be financially literate because
you have full time jobs.
you live rent free with your folks
you SPEND MONEY $$$$$$$$
you have car payments
Congratulations!!! You just won $15,000 in the Lottery! You will
get a check from the US Treasury for $15,000
receive a check for $15,000 plus interest on your winnings.
Not pay taxes on winnings
Have to report the $15,000 to the Internal Revenue Service (IRS) as income for that year.
If you have an apartment, you probably want to protect your furniture and electronics. You should
have your landlord purchase insurance since he owns the apartment building.
Not pay a security deposit
purchase health insurance
Purchase renter's insurance.
Why would you purchase insurance for your phone?
So you can get an unlimited plan.
So you can replace your phone it it's lost or stolen.
So you can upgrade with no cost.
So you can switch from Spring to AT&T anytime you want to switch.
If you purchase a 30 year term life insurance policy, which is true?
A death benefit is paid if you die during the 30 years of the term.
A death benefit is paid if you die 1 year after the 30 year term.
A death benefit is paid if you die in the first 10 years only.
If you do not receive a death benefit, you will get all of your premiums back.
Why should you purchase insurance?
So you can protect your assets and family from risk of potential losses.
So you can be better off than before you purchased insurance.
So you don't have to worry about inflation.
So you don't have to pay income tax.
What is the biggest difference between whole and term life insurance?
Whole life insurance accumulates a cash value.
Whole life insurance does not pay a death benefit
Term life insurance is more expensive than whole life insurance
Term life insurance pays after the term is over
A financial product purchased by many people facing a similar risk to protect against the risk of larger losses.
Deposits
Emergency Savings
Insurance
Claim
The out of pocket money paid by the policy holder before the insurance company will cover the remaining costs attributed to the loss
Deductible
Premium
Claim
The chance of loss from an event that cannot be entirely controlled.
Claim
Deductible
Risk
Reward
The money paid to an insurance company to purchase a policy.
Deductible
Co-pay
Premium
Payout
A contract between an insurance company and the insured that states the exact terms of the policy, including what risks are covered and how much will be paid for any loss.
Claim
Co-Insurance
Beneficiary
Policy
Someone who receives insurance if an insured dies.
Beneficiary
Policy Holder
Insured
Agent
A formal request to an insurance company asking for a payment when the policy holder has an accident, illness or injury.
Beneficiary
Preimum
Claim
Deductible
Person who owns the insurance policy.
Insurance Agent
Beneficiary
Policyholder
Requires the insured individual to pay a fixed percentage of the loss after the deductible has been paid.
claim
co-inurance
deductible
co-deductible
Provides payments for both liability and property insurance on a vehicle.
Automobile insurance
Comprehensive inurance
Property insurance
Liability insurance
Provides payment to replace earnings during times when workers cannot work due to illness or injury.
Liability Insurance
Disability Insurance
Long-term care insurance
Health Insurance
Provides money to pay for health care for illness, injury or in some cases, preventative care.
Long term care insurances
Life Insurance
Disability insurance
Health Insurance
Provides payments to others if a member of the insured household accidently causes harm to other people or property
Risk Insurance
Property Insurance
Liability Insurance
Emergency Insurance
Provides payment to cover liability losses as well as damage and loss of the home structure and its contents.
Liability Insurance
Comprehensive Insurance
Homeowners Insurances
Renters Insurance
Provides payments to renters to cover the damage and loss of property in a rental unit, in addition to liability losses.
Homeowners insurance
Property Insurance
Renters insurance
None of the above
Provides payment to the insured person if his or her property is damaged or destroyed by an accident covered by the insurance policy.
Homeowners Insurance
Property Insurance
Liability Insurance
Automobile Insurance
I have learned something useful in Economics and Personal Finance
Yes
Yes
Yes
Yes
