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Worksheets

Insurance Knowledge

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

What is the purpose of health insurance coverage?

a)

To provide emotional support during illness

b)

To provide financial protection against medical expenses

c)

To encourage healthy lifestyle choices

d)

To offer discounts on gym memberships

2.

What are the different types of auto insurance policies?

a)

Accidental, Theft, Fire

b)

Property Damage, Bodily Injury

c)

Liability, Collision, Comprehensive, Uninsured/Underinsured Motorist, Personal Injury Protection (PIP), Medical Payments

d)

Roadside Assistance, Rental Reimbursement

3.

How can homeowners file insurance claims for damages to their property?

a)

Blame the neighbor and demand they pay for the damages

b)

Contact insurance company, document damage, obtain repair estimates, complete claim form, cooperate with adjuster

c)

Post about it on social media instead of contacting insurance

d)

Ignore the damage, hope it goes away on its own

4.

Who can be named as beneficiaries in a life insurance policy?

a)

Individuals, organizations, or entities designated by the policyholder

b)

Pets and animals

c)

Historical figures

d)

Inanimate objects

5.

What are some common methods to prevent insurance fraud?

a)

Ignoring all claims without verification

b)

Sharing sensitive customer data openly

c)

Implementing fraud detection software, conducting thorough background checks, verifying claims with supporting documentation, and educating about fraud prevention.

d)

Hiring known fraudsters as insurance agents

6.

Why is it important to have health insurance?

a)

To limit access to healthcare services

b)

To have more paperwork to deal with

c)

To increase medical costs

d)

To protect against high medical costs and ensure access to quality healthcare services.

7.

Explain the concept of comprehensive coverage in auto insurance.

a)

Comprehensive coverage is not necessary for auto insurance

b)

Comprehensive coverage only covers collision damages

c)

Comprehensive coverage in auto insurance helps pay for non-collision related damages to your car.

d)

Comprehensive coverage does not include theft protection

8.

What factors can affect homeowners insurance premiums?

a)

Location, age and condition of home, coverage amount, deductible, underwriting guidelines, credit score, additional riders/endorsements

b)

Color of the front door, number of bathrooms, distance to the nearest park

9.

How does the payout process work for life insurance beneficiaries?

a)

The benefit amount is given in installments over several years

b)

The insurance company automatically deposits the benefit amount into the beneficiary's account

c)

Beneficiaries need to submit a claim with required documentation, and upon approval, the insurance company will release the benefit amount.

d)

Beneficiaries must pay a fee to receive the benefit amount

10.

What are some red flags that may indicate insurance fraud?

a)

Limited coverage, detailed accident reports, reputable insurance company

b)

Low premiums, consistent information, no claims filed

c)

Accurate medical records, transparent billing, timely payments

d)

Frequent claims, inconsistent information, staged accidents, medical providers billing for services not rendered

11.

What are the benefits of having life insurance?

a)

Covering pet expenses

b)

Guaranteeing a spot in exclusive clubs

c)

Providing free vacations for the insured

d)

Financial protection for loved ones, covering funeral expenses, paying off debts and mortgages, replacing lost income, and providing peace of mind.

12.

Describe the role of collision coverage in auto insurance.

a)

Collision coverage pays for gas expenses in case of a collision.

b)

Collision coverage covers medical expenses for injuries sustained in a collision.

c)

Collision coverage provides coverage for theft of the vehicle.

d)

Collision coverage pays for repairs to your vehicle in case of a collision.

13.

What is the difference between actual cash value and replacement cost in homeowners insurance?

a)

Actual cash value is only available for older homes, while replacement cost is for newer homes.

b)

Actual cash value considers depreciation, while replacement cost does not.

c)

Actual cash value is based on market value, while replacement cost is based on assessed value.

d)

Actual cash value is for personal property, while replacement cost is for dwelling coverage.

14.

How can beneficiaries claim life insurance benefits after the policyholder's death?

a)

Contact the insurance company, submit a claim form, provide necessary documents, and follow the company's process.

b)

Ignore the policy and hope the benefits magically appear

c)

Visit the policyholder's residence and demand the benefits

d)

Post about it on social media and wait for responses

15.

What are some legal consequences of committing insurance fraud?

a)

License suspension, restitution, employment termination

b)

Criminal charges, fines, civil lawsuits, imprisonment, tarnished reputation

c)

Community service, probation, asset seizure

16.

How does health insurance help in covering medical expenses?

a)

Health insurance covers only cosmetic procedures

b)

Health insurance provides financial protection against high medical costs by covering a portion of the expenses as outlined in the policy.

c)

Health insurance does not provide any financial assistance for medical expenses

d)

Health insurance only covers expenses for pre-existing conditions

17.

What is uninsured motorist coverage in auto insurance?

a)

Uninsured motorist coverage only applies to damage to your own vehicle

b)

Uninsured motorist coverage in auto insurance provides protection in case you are involved in an accident with a driver who does not have insurance or has insufficient coverage.

c)

Uninsured motorist coverage is not required by law

d)

Uninsured motorist coverage is only applicable if the other driver is at fault

18.

What is the purpose of a deductible in homeowners insurance?

a)

To cover the insurance company's administrative costs

b)

To reduce the policyholder's liability

c)

To share the risk between the policyholder and the insurance company.

d)

To increase the insurance company's profits

19.

What are the different types of life insurance beneficiaries?

a)

additional beneficiaries

b)

secondary beneficiaries

c)

primary beneficiaries, contingent beneficiaries, tertiary beneficiaries

d)

final beneficiaries

20.

How can individuals report suspected insurance fraud?

a)

Report to the local grocery store

b)

Share on social media

c)

Ignore and do nothing

d)

Report suspected insurance fraud to the state insurance department, NICB, or insurance company directly. Can also report anonymously through NICB's tip line or website.