WorksheetsInsurance - Unit Test - Mod
Total questions: 30
Worksheet time: 15mins
Name
Class
Date
1.
1. What is an insurance premium?
a)
Your monthly payment to your insurer, regardless of whether you use any services
b)
A list of the procedures covered by your insurance carrier
2.
2. Which term refers to the percentage of covered medical expenses you are responsible for paying after your deductible is met?
a)
Premium
b)
Co-insurance
3.
3. When setting your premium, your car insurance company may consider each of the following EXCEPT...
a)
Your driving record
b)
Your height
4.
4. Insurance companies make money by...
a)
Collecting money from the government
b)
Collecting more in premiums than they need to pay out each year
5.
5. Which of the following statements is TRUE about auto insurance premiums?
a)
Auto insurance premiums are a fixed price across all insurance companies
b)
If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will increase
6.
6. Your renter's insurance policy costs $20/month and has a $1,000 deductible. A thief breaks into your apartment and steals your $800 TV set. How much would your insurance company pay?
a)
$0
b)
$200
7.
7. Someone broke into Sam’s car by smashing the passenger window. Which type of auto insurance coverage will help cover the cost to get the window replaced?
a)
Collision
b)
Comprehensive
8.
8. Why would someone choose to get long term disability insurance even if they already have health insurance?
a)
Health insurance only covers regular check ups, while long term disability insurance also covers emergencies
b)
Health insurance only covers medical bills, while long term disability will help compensate for lost work with a percentage of their income
9.
9. You cause an accident and injure the other driver. The case goes to trial and there is a verdict to compensate the injured person with $58,000. You have a $75,000 coverage limit per person for Bodily Injury. How much will the insurance company pay?
a)
$58,000
b)
$75,000
10.
10. Frank has an auto policy with a coverage limit of $30,000 and a deductible of $1,000. He gets into an accident and the damages to his car total $6,200. Fortunately, he has collision coverage. How much will Frank need to pay out-of-pocket?
a)
$0
b)
$1,000
11.
11. Each of these is considered an "out-of-pocket" expense EXCEPT…
a)
Your monthly premium
b)
A copay of $15 to fill a prescription
12.
12. Medicaid generally provides insurance for which of the following groups of people?
a)
Individuals in low-income households
b)
Anyone who wants to buy coverage from the Marketplace
13.
13. Your employer offers an employer-sponsored health insurance plan. Which of the following statements is TRUE?
a)
You can only see doctors who are also employees of the same company
b)
Your health insurance premiums will be paid directly from your paycheck, pre-tax
14.
14. Which person will probably have the MOST expensive health insurance premiums?
a)
Julian, who has 3 children and is eligible for Medicaid
b)
Patty, who works as an administrative assistant for an employer with a group plan
15.
15. What type of auto insurance are you required to carry in almost every state (49 out of 50)?
a)
Insurance if you damage your own property
b)
Insurance if you cause injury to another person
16.
16. Bruce has just graduated from college and decides that instead of paying for insurance, he'll work on building up his emergency fund. This way, if something goes wrong, he can just pay for it using cash. Why is this a risky idea?
a)
An accident or illness can strike at any time and be quite expensive, so it's possible he'd need a big sum of money well before his emergency fund was large enough
b)
Having insurance not only protects you financially, but also physically, so he'll be less likely to experience illness or accident if he has insurance
17.
17. Your parents tell you that on your 22nd birthday, they would like for you to get your own health insurance. You are very healthy, are not taking any prescription medicines, and generally only see your doctor for your annual physical. What type of health insurance is likely to be best for you?
a)
A low deductible plan with a high monthly premium
b)
A high deductible plan with a low monthly premium
18.
18. Insurance companies operate by charging individuals different prices for coverage depending on their risk levels. Then, they collect everyone's monthly premiums together and use the money to make payments when people file a claim (for example, someone is in an auto accident or needs to see a doctor). This concept is known as…
a)
Risk pooling
b)
Underwriting
19.
19. Lula’s got a pet dog, for whom she bought an accident and illness pet insurance policy three months ago. The dog steps on a mouse trap set out by neighbors and needs his first vet services of the year, totaling $800. Lula’s deductible is $1000, her reimbursement rate is 75%, and her coverage limit is $15,000. How much does Lula pay, and how much does the insurance pay?
a)
Lula pays $600, the insurance pays $200
b)
Lula pays $800, the insurance pays $0
20.
20. In general, how do insurance companies decide how much to charge an individual for their monthly premiums?
a)
The company assesses the individual's risk factors and assigns higher premiums to higher risk individuals
b)
The company looks at the individual's tax filings from the previous year to assess overall wealth and ability to pay
21.
21. Which of the following insurance coverage options would be the lowest priority for a typical single person, with no children, 1-2 years out of high school?
a)
Auto Insurance (if they have a car)
b)
Life Insurance
22.
22. Your health insurance plan has a $20 copay for certain covered prescription medications. You arrive at the pharmacist and pick up your prescription (which is covered under your plan) which has a list price of $75. How much would you pay the pharmacy?
a)
$20
b)
$55
23.
23. A standard renters insurance policy would cover each of the following EXCEPT…
a)
A small TV and some sneakers, stolen in a robbery
b)
A new window when a baseball breaks the original one
24.
24. Finn moves from a rented apartment into his very first house. What should he expect regarding the cost of homeowners insurance compared to renters insurance?
a)
He will not need homeowners insurance, because owning a home is less risky than renting
b)
His homeowners insurance will be MORE expensive than his renters insurance was
25.
25. Which BEST describes what is meant by a health insurance marketplace?
a)
An online directory that lists doctor and hospital contact information
b)
A federal- or state-run website with the individual health insurance plans available in a given state
26.
26. Jasmine has rented the same apartment for 10 years, and she’s never had to use her renter’s insurance even once. She wants to cancel the policy as a result, because it feels like she’s wasting money. Provide a counter argument, telling Jasmine why that’s a bad idea.
4 lines
27.
27. Ronald is trying to pay down his student loan debt as quickly as possible, so he decides not to purchase disability insurance and uses that money toward debt repayment instead. Ronald has a bad skiing accident, and doctors anticipate he won’t be able to work again for six to nine months. Can he enroll in short-term disability insurance tomorrow and file the claim? Why or why not?
4 lines
28.
28. Why do insurance companies charge more if they believe you are a “high risk” customer?
4 lines
29.
29. Rocco causes an auto accident on a residential street. He has liability coverage only. He causes $7000 in damage to someone else’s car, $2000 in damage to his own car, and has a maximum coverage limit of $10,000. How much will insurance pay toward fixing Rocco’s car? Explain.
4 lines
30.
30. Assuming you’re not able to change things about yourself, personally, how can you reduce the amount you pay for health insurance premiums?
4 lines
100 %
