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Insurance- Personal Finance

Total questions: 37

Worksheet time: 20mins

Name
Class
Date
1.

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

a)

Premium

b)

Deductible

2.

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

a)

Collision

b)

Liability

c)

Comprehensive

d)

None

3.

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

a)

Collision

b)

Liability

c)

Comprehensive

d)

None

4.

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

5.

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

6.

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

7.

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

8.

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

a)

18

b)

21

c)

26

d)

29

9.

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

a)

True

b)

False

10.
The amount paid for insurance is the
a)
closing cost
b)
premium
c)
deductible
d)
assessed value
11.
Bodily injury covers your liability for injury to
a)
yourself
b)
property
c)
others
d)
other cars
12.
Insurance that protects your family against financial loss due to your death is
a)
coinsurance
b)
disability insurance
c)
life insurance
d)
comprehensive insurance
13.
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
14.
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
15.
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
16.

What is the relationship between premiums and deductibles?

a)

As one goes up, the other goes up.

b)

As one goes up, the other goes down.

c)

There is no relationship.

17.

What part of your insurance covers another's car or body in case your injure them.

a)

Collision

b)

Comprehensive

c)

Underinsured

d)

Liability

18.

You are hit by another driver. He carries $30,000 in liability coverage, but the damage to your convertible is $40,000. What type of policy would you need to insure that he insurance will pay the entire amount?

a)

Collision

b)

Liability

c)

Underinsured

d)

Bodily Injury

19.

Who has cheaper life insurance rates?

a)

Men

b)

Women

20.

Who pays more for car insurance?

a)

Men

b)

Women

21.

Which of these is covered by a standard homeowner policy?

a)

Flood

b)

Vandalize

c)

Earthquake

d)

Hurricane

22.

The person to whom an insurance policy is issued.

a)

Agent

b)

Salesman

c)

Broker

d)

Policyholder

23.

A payment made monthly, twice a year, or yearly, for an insurance policy.

a)

Premium

b)

Copay

c)

Tax

d)

Benefit

24.

Chance or possibility of injury, damage, or loss that someone may want an insurance policy to cover.

a)

Debt

b)

Risk

c)

Premium

d)

Agent

25.
Insurance to protect your personal home.
a)
comprehensive 
b)
renter's
c)
property damage
d)
homeowner’s 
26.
Insurance to protect your personal items in your rented apartment or rented house.
a)
homeowners
b)
renters
c)
property
d)
liability
27.
Term coverage allows a person to be insured for their entire life.
a)
True 
b)
False
28.

_______ _________ insurance also known as permanent life insurance, offers financial protection for your entire life

a)

term life

b)

whole life

c)

universal life

d)

life

29.

If you get into a car accident, your _______________ may increase because you will be considered riskier for

insurance companies to cover.

a)

insurance premium

b)

claims adjustment

c)

car loan payment

d)

taxes

30.

What will collision insurance cover in the event of an accident?

a)

Damage to someone else’s car

b)

Damage to your car

c)

Damage to someone else’s property

d)

Bodily injuries

31.

What is a consequence of not having health insurance?

a)

You must pay all costs for health care and medical emergencies.

b)

You’re not allowed to go to a hospital.

c)

You will get a lower standard of care from doctors.

d)

You can only see doctors in your home state.

32.

All of the following are true about health insurance except:

a)

Purchasing health care can help save you from medical bankruptcy.

b)

Health insurance decreases your healthcare costs.

c)

Health insurance decreases your healthcare costs.

d)

Being young and healthy means you can skip out on health insurance.

33.

Which type of insurance is employer sponsored.

a)

Group

b)

Individual

34.

What group of people is covered under Medicare?

a)

individuals over age of 65

b)

children of low income families under age of 18

c)

any US citizen

d)

individuals with disabilities

35.

Medicaid insurance takes care of people....

a)

Who are over 65 in nursing homes

b)

Who are low-income

36.
Of the four parts of auto insurance coverage, which part protects your from acts of God?
a)
Comprehensive
b)
Liability
c)
Collision
d)
Medical Payments/Bodily Injury
37.
Of the four parts of auto insurance coverage, which part will pay for injuries to passengers or pedestrians and funeral expenses?
a)
Medical Payments/Bodily Injury
b)
Collision
c)
Comprehensive
d)
Liability