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Insurance Review

Total questions: 32

Worksheet time: 16mins

Name
Class
Date
1.

What type of insurance specifically covers damage to a person's home and belongings in case of disasters or theft?

a)

Auto Insurance

b)

Health Insurance

c)

Homeowner's Insurance

d)

Life Insurance

2.

Which term refers to the amount a policyholder must pay out-of-pocket before the insurance company pays a claim?

a)

Premium

b)

Deductible

c)

Copay

d)

Benefit

3.

What is the term for the insurance that provides coverage to motorists who are involved in accidents with drivers who either have no insurance or insufficient insurance?

a)

Liability Insurance

b)

Uninsured/Underinsured Motorist

c)

Comprehensive Insurance

d)

Collision Insurance

4.

Which type of insurance is designed to cover the costs of legal claims made against the insured party?

a)

Property Insurance

b)

Health Insurance

c)

Liability Insurance

d)

Life Insurance

5.

What does the term 'Grace Period' refer to in the context of insurance policies?

a)

Time to file a claim after an incident

b)

Period to renew the policy without penalty

c)

Time allowed to pay the premium after the due date without losing coverage

d)

Duration of the insurance policy

6.

What type of insurance is specifically designed to cover long-term services and supports, including personal and custodial care in a variety of settings such as your home, a community organization, or other facility?

a)

Term Life Insurance

b)

Health Insurance

c)

Long-Term Care Insurance

d)

Disability Insurance

7.

Which insurance type is intended to provide financial support to a person's beneficiaries after their death?

a)

Health Savings Account

b)

Life Insurance

c)

Renter’s Insurance

d)

Supplemental Insurance

8.

What is the purpose of a Health Savings Account (HSA)?

a)

To cover rental property damages

b)

To provide payouts upon the policyholder's death

c)

To save for future medical expenses in a tax-advantaged way

d)

To cover long-term disability needs

9.

Which type of insurance is designed to replace a portion of your income if you become disabled and are unable to work?

a)

Dependent Insurance

b)

Health Insurance

c)

Disability Insurance

d)

Term Life Insurance

10.

What does Renter's Insurance primarily provide?

a)

Coverage for long-term care

b)

Financial support for beneficiaries

c)

Protection for personal property in a rental unit

d)

Savings for health-related expenses

11.

Why is having insurance important, even if you never have to use it?

a)

It is mandatory in the United States

b)

B) It is legally required for all individuals in Ohio.

c)

C) It increases your monthly expenses.

d)

D) It covers all types of financial risks.

12.

What could happen if you have an accident but don’t have insurance?

a)

A) You may face significant financial difficulties.

b)

B) You will receive free medical care.

c)

C) It will not affect you financially.

d)

D) Your insurance premium will decrease.

13.

What would you say to someone who isn’t willing to spend the money on the monthly insurance charge?

a)

A) It's a wise investment to protect against potential financial crises.

b)

B) It's unnecessary if you are healthy.

c)

C) It's better to save the money for other expenses.

d)

D) Insurance companies usually don't pay out claims.

14.

What is the state minimum coverage limit for injuries to individuals in an auto insurance policy?

a)

$25,000

b)

$50,000

c)

$100,000

d)

$300,000

15.

What amount does the "100/300/100" cover for damage to property per accident?

a)

$15,000

b)

$50,000

c)

$100,000

d)

$300,000

16.

What is the total coverage for all injuries to people per accident under a 100/300/100 auto policy?

a)

$50,000

b)

$100,000

c)

$300,000

d)

$500,000

17.

What does the "100" in the 100/300/100 auto coverage policy represent in terms of bodily injury per person?

a)

$100,000 maximum for injuries per person

b)

$100,000 maximum for injuries per accident

c)

$100,000 maximum for property damage

d)

$300,000 maximum for injuries per accident

18.

What does the term 'deductible' refer to in an insurance policy?

a)

The amount paid by the insurance company when a claim is made.

b)

The initial amount paid out-of-pocket by the policyholder before an insurance provider will cover any expenses.

c)

A mandatory fee paid annually for insurance renewal.

d)

The percentage of the claim that the insurance company will not cover.

19.

Which of the following is NOT typically a category included in a home insurance policy?

a)

Personal property coverage

b)

Structural damage coverage

c)

Auto insurance coverage

d)

Liability protection

20.

Which of the following is typically covered by a homeowners insurance policy?

a)

Pet injuries

b)

Flood damage

c)

Theft of personal property

d)

Car accidents on the property

21.

Which statement best describes a key difference between renters and homeowners insurance?

a)

Renters insurance covers the building structure, while homeowners does not.

b)

Homeowners insurance covers personal property only, while renters insurance covers both personal property and the building.

c)

Renters insurance typically does not cover the building structure, whereas homeowners insurance does.

d)

There is no difference; both insurances cover the same items.

22.

What is "umbrella coverage" in the context of insurance?

a)

A) A policy that covers only personal injuries

b)

B) A policy that provides additional coverage beyond existing limits and coverages of other policies

c)

C) A basic insurance policy that covers home and car only

d)

D) Insurance that covers only natural disasters

23.

What is a "co-pay"?

a)

(also copayments or coinsurance) the payments an individual makes each time they get medical service​​​​​​​

b)

a formal request by a policyholder to their insurance company for compensation for a covered loss​​​​​​​

c)

the amount of money you will pay out of pocket before the insurance company will make a payment​​​​​​​

d)

$95

24.

What is the primary purpose of health insurance?

a)

To cover vehicle damage costs

b)

To provide coverage for medical expenses

c)

To insure property against theft

d)

To provide travel insurance

25.

When choosing a health insurance plan, what is a critical financial factor to consider?

a)

The color of the insurance card

b)

The celebrity endorsements

c)

The total out-of-pocket expenses

d)

The number of advertisements

26.

If you had to choose between a health insurance plan that was more expensive per month with better coverage and one that was cheaper with worse coverage, which factor would most influence your decision?

a)

The insurance company's logo

b)

The monthly cost versus coverage quality

c)

The availability of online support

d)

The number of offices

27.

What is the primary purpose of life insurance?

a)

To provide a wealth-building strategy

b)

To provide family income in the event of the policyholder's death

c)

To cover the policyholder's medical expenses

d)

To invest in long-term financial assets

28.

How much income in death benefit is generally recommended?

a)

About 5x your income

b)

About 10x your income

c)

About 15x your income

d)

About 20x your income

29.

Which type of life insurance is typically the cheapest form of coverage?

a)

Universal life insurance

b)

Whole life insurance

c)

Term life insurance

d)

Variable life insurance

30.

What is the purpose of life insurance?

a)

To secure a loan.

b)

To protect your family financially in case of his death.

c)

To invest in the stock market.

d)

To save on taxes.

31.

It is always cheaper to go to medical providers out of your insurance company's network.

a)

True

b)

False

32.

What makes life insurance different from all the other forms of insurance we talked about this past week?

a)
Life insurance only covers medical expenses
b)

Life insurance is not a permanent need. You only need to hold a life insurance policy until your family is financially independent.

c)
Life insurance covers damages to property instead of providing financial protection to beneficiaries
d)
Life insurance is not a form of insurance