WorksheetsUnit Seven: Money and Career Management (3) Review
Total questions: 40
Worksheet time: 25mins
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
Your renter's insurance policy costs 25/month and has a 1,200 deductible. A thief breaks into your apartment and steals your $1100 TV set. How much would your insurance company pay?
$0
$100
$1,200
$1100
Why would someone choose to get long term disability insurance even if they already have health insurance?
To cover lost income if they are unable to work due to a disability
To pay for medical bills not covered by health insurance
To receive better medical care
To reduce monthly health insurance premiums
Frank has an auto policy with a coverage limit of 30,000andadeductibleof 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?
$1,000
$6,200
$0
$30,000
Social Security generally provides (retirement) insurance for which of the following groups of people?
The elderly or disabled
Employees who have a government position
Anyone with a job
Children and students
What is a potential consequence of not having mandatory insurance types like auto, health, life, disability, and renters/home insurance?
You will save money
You will have to pay penalties
You will be healthier
You will have more coverage
What is the benefit of starting to pay for insurance early?
You can stop paying altogether for coverage sooner
You will never need to use it
It is cheaper than paying later
It is not beneficial
Fill in the blank: The sooner you start paying for insurance, the sooner you will reach your maximum ________ requirement.
Lifetime
Monthly
Annual
Weekly
While parked on the street overnight, Sam's car is hit by a falling branch from the tree he parked beside. The hood is dented and the windshield is severely cracked. Which type of auto insurance coverage will help cover the cost to get the hood and windshield replaced/fixed?
A) Collision
B) Liability
C) Comprehensive
D) Uninsured motorist coverage.
Lucille just graduated college and is on a very tight budget, so she chooses a health insurance plan with a low monthly premium and a high deductible. She figures that if she gets seriously ill or injured, she'll just change the plan before she heads to the doctor or hospital. Why won't her plan work?
A) You cannot change your plan instantly at any time, and she cannot predict when an emergency will strike
B) Changing your health insurance plan that quickly can only be done by clients who are 35 or older
C) This plan will only work if she goes in-network, and most hospitals are out-of-network
D) People with high deductible plans usually cannot go to the hospital -- they have to go to the emergency room instead.
Insurance companies operate by charging individuals different prices for coverage depending on their risk levels. This concept is known as ______.
risk pooling
comprehensive coverage
risk management
underwriting
Which of the following insurance coverage options would be the lowest priority for a typical single person 1-2 years out of college?
Life Insurance
Auto Insurance (if they have a car)
Renter's Insurance (if they are renting an apartment)
Health Insurance
Since doctors only accept specific health insurance plans, what should you do prior to selecting your own health insurance plan?
Check the list of doctors “in the network”
Decrease your co-pay amount
Find an out-of-network doctor for a plan you’re interested in
Increase your premium amount to upgrade your coverage to include any and all doctors
Which best explains the difference between Medicare and Medicaid?
A) Medicare is for the elderly, Medicaid is for the disabled and those with financial hardships.
B) Medicaid is for the elderly, Medicare is for the disabled.
C) Medicare is for children, Medicaid is for the elderly.
D) Medicaid is for those 65 or older, Medicare is for the disabled.
Medicaid is for the disabled and those with ________.
financial hardships
high income
no health issues
private insurance
What is the primary purpose of having health insurance?
To ensure you receive a monthly income
To increase your credit score
To cover medical expenses and reduce financial risk
To avoid paying taxes
Which type of insurance is typically required by law for drivers?
Auto Liability Insurance
Life Insurance
Homeowners Insurance
Health Insurance
What is a deductible in an insurance policy?
The amount the insured pays before the insurer covers expenses
The amount the insurer pays before coverage begins
The total coverage limit of the policy
The monthly payment for the insurance policy
What is the primary function of life insurance?
To insure property against damage
To reduce monthly expenses
To cover medical expenses
To provide financial support to beneficiaries after the policyholder's death
Which type of insurance is most likely to cover the cost of repairing a home after a natural disaster?
Health Insurance
Life Insurance
Homeowners Insurance
Auto Insurance
What is the main benefit of having renters insurance?
It covers the cost of rent
It protects personal belongings in case of theft or damage
It provides health coverage
It reduces utility bills
The main purpose of insurance is to provide financial protection in the event of
illness or injury
accidents and property losses
death
illness, injury, accidents, property losses, and death
An amount you must pay toward your medical expenses before insurance pays is the
copayment
dividend
deductible
coinsurance
An example of a managed care plan is
POS
HMO
PPO
POS, HMO, and PPO
If you are hurt on the job, you are covered by law under
health insurance
workers compensation insurance
CHIP
disability insurance
An insurance coverage that protects you when you cause an auto accident with injuries is
renters insurance
bodily injury liability
property damage liability
A person who has purchased insurance
Dependent
Inpatient
Beneficiary
Policyholder
A process of measuring risk and finding ways to minimize loss
Risk
Risk Management
Premium
Pure Risk
HMOs force you to pick a doctor from a list
TRUE
FALSE
You have to stay within a list of doctors if you have a PPO
TRUE
FALSE
Joe just turned 65. What kind of insurance can he get now?
Tri-care
Medicare
Medicaid
Life
What did Obama and Congress pass in 2010?
Acceptable Care Act
Affluent Care Act
Affordable Care Act
Astounding Care Act
When a hit and run driver strikes your car, what kind of coverage do you need?
Uninsured motorist coverage
Personal Injury Protection
Bodily injury liability insurance
Property damage liability insurance
Which of these indicators would probably make your auto insurance cheaper?
A clean driving record for 36 months
Completing a defensive driving course
Purchasing a car in a make that is not frequently stolen
All fo the above
The type of car you drive affects the cost of your premium.
True
False
A person designated to receive a death benefit is?
Insured
Legal party
Beneficiary
Trustee
Of the following what is a good reason to have auto insurance?
It's mandated by law
Less chance of accident
It's cheap
It's expensive
