WorksheetsInsurance Quiz
Total questions: 20
Worksheet time: 15mins
Your renter's insurance policy costs $20/month and has a $1,000 deductible. A thief breaks into your apartment and steals your $1200 TV set. How much would your insurance company pay? [JUST PUT THE NUMBER]
(a)
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? [JUST PUT THE NUMBER]
(a)
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? [JUST PUT THE NUMBER]
(a)
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? [JUST PUT THE NUMBER]
(a)
What is an insurance premium?
Your monthly payment to your insurer, regardless of whether you use any services
A list of the procedures covered by your insurance carrier
An added cost you pay in order to receive higher-quality services
The amount you pay out-of-pocket for a specific procedure or service
When setting your premium, your car insurance company may consider each of the following EXCEPT...
How many miles you drive per year
Your age
Your driving record
Your height
Why would someone choose to get long term disability insurance even if they already have health insurance?
Long term disability only covers medical bills, while health insurance will help compensate for lost work with 40-60% of their income
Long term disability insurance plans can also extend coverage to family members and pets
Health insurance only covers regular check ups, while long term disability insurance also covers emergencies
Health insurance only covers medical bills, while long term disability will help compensate for lost work with a percentage of their income
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?
It is mandatory to have auto, health, life, disability, and renters/home insurance, so he'll have to pay 5 penalties per year for not enrolling in these insurance types
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
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
The sooner he starts paying for insurance, the sooner he will reach his maximum lifetime requirement and can stop paying altogether for coverage
Which term refers to the percentage of covered medical expenses you are responsible for paying after your deductible is met?
Deductible limit
Premium
Out-of-network fees
Co-insurance
Insurance companies make money by...
Refusing to pay out claims to policyholders
Collecting money from the government
Collecting more in premiums than they need to pay out each year
Keeping costs low with minimal advertising
In general, how do insurance companies decide how much to charge an individual for their monthly premiums?
The company assesses the individual's risk factors and assigns higher premiums to higher risk individuals
The company looks at the individual's tax filings from the previous year to assess overall wealth and ability to pay
The company charges the same premium for every individual eligible for coverage
The company increases or decreases premium rates based on the stock market
Which of the following statements is TRUE about auto insurance premiums?
If you have an auto insurance policy and don't get into a car accident or file any claims for a year, you get your premiums back from the insurance company
If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will decrease
Auto insurance premiums are a fixed price across all insurance companies
If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will increase
Each of these is considered an "out-of-pocket" expense EXCEPT…
Your monthly premium
A copay of $15 to fill a prescription
A $1000 deductible if you're in an auto accident
Excess bills from a car accident once you've gone over your maximum coverage limit
Your employer offers an employer-sponsored health insurance plan. Which of the following statements is TRUE?
You can only see doctors who are also employees of the same company
Your health insurance premiums will be paid directly from your paycheck, pre-tax
Your employer cannot fire you if you get sick or injured because you have employer-sponsored health care
You can remain on that health insurance plan even if you switch jobs
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?
Bodily injury liability
Property liability
Collision
Comprehensive
A standard renters insurance policy would cover each of the following EXCEPT…
A small TV and some sneakers, stolen in a robbery
A new window when a baseball breaks the original one
A lawsuit brought when a visitor hits their head on a low hanging light fixture
A week of hotel reservations when the tenant has to move out due to fire damage
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…
Comprehensive coverage
Risk pooling
Underwriting
Risk management
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 low deductible plan with a high monthly premium
A high deductible plan with a low monthly premium
Your parents MUST keep you on their plan. They cannot legally remove you.
You do not need health insurance because you are healthy
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?
Health Insurance
Auto Insurance (if they have a car)
Life Insurance
Renter's Insurance (if they are renting an apartment)
If your health insurance plan has a $500 deductible, how much will you have to pay out-of-pocket before your insurance starts to cover your medical expenses?
$0
$250
$500
$1000
