WorksheetsUnderstanding Insurance Basics Quiz
Total questions: 40
Worksheet time: 24mins
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
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
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
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
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
Your renter's insurance policy costs 20 dollars per 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?
$0
$200
$800
$1,000
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
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?
$0
$17,000
$58,000
$75,000
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?
$0
$1,000
$6,200
$30,000
A type of risk management that protects you from losing money if something happens to you or your property is called...?
inflation
insurance
warranty
deductibles
The price you pay regularly to keep an insurance policy in force is called the...?
premium
deductible
co-pay
subscription
Policyholders combine their premium payments to share the risk of loss with each other in a...?
CD account
lake
credit report
pool
Before insurance pays for a claim, the policyholder must pay for...?
deductible
Traffic violation
claim
Raising the deductible on a policy causes the premium to...?
stay the same
increase
decrease
become unpredictable
Wearing a seatbelt, not texting when driving, and driving carefully are examples of...?
risk management
warranties
liability claims
term life beneficiaries
In a car accident, collision insurance covers...?
damage to someone else’s property.
damage to someone else’s car.
your injuries.
damage to your car.
An uninsured driver hits Rafael's truck. What type of coverage would protect Rafael?
state motorist coverage
whole life coverage
uninsured or no-fault motorist coverage
insolvent motorist coverage
You have a car accident, but you do not have insurance coverage.
Who is liable (responsible) for damage to your car and your injuries?
you
the state government
the other driver's collision insurance
Federal Insurance Deposit Corporation
Which of the following is a benefit of health insurance?
Health insurance increases your losses from medical debt.
Health insurance provides a refund for ineffective surgery.
Policyholders can go to the front of the line in emergency rooms.
Health insurance protects you financially from medical emergencies.
An official request for money that your insurance company owes you for your loss:
co-pay
settlement
claim
deductible
What can insurance protect you from?
[SELECT 2 ANSWERS]
theft
contract fees
financial loss
car loan payments
Who pays the deductible?
the insurance company
the policyholder
the claims adjuster
the government
House insurance only covers the home NOT the contents inside the home.
True
False
Flood insurance is a separate policy from your home insurance.
True
False
Collision insurance covers damages to the policyholders car.
True
False
The document spells out all the details of your insurance.
Policy
Profile Sheet
Premium
Deductible
If your dog bites someone in your yard, what insurance covers that persons medical bills? Think about it
Your Auto Ins.
Your Home Owners Ins.
Your Life Ins.
Hour Medical Ins.
What kind of coverage do most auto lenders require?
Hannah, Avery, and Charlotte are discussing car insurance. Hannah says that liability coverage in car insurance covers injuries and property damage caused by the insured. Is she correct?
Yes, it covers injuries and property damage caused by the insured
No, it covers the medical expenses of the insured
No, it covers collision damage to the insured's car
No, it covers theft and natural disasters
What is the purpose of collision & comprehensive coverage in car insurance?
To cover collision damage to the insured's car
To cover injuries and property damage caused by the insured
To cover the medical expenses of the insured
To cover theft and natural disasters
David was driving his car when he was hit by another driver who fled the scene. David's car was damaged and he was injured. He had uninsured motorist coverage in his car insurance. What does this coverage do in such a scenario?
Covers injuries and property damage caused by David
Covers collision damage to David's car
Covers the medical expenses of David
Covers injuries and property damage in accidents with uninsured or underinsured drivers
What kind of car insurance is required by law?
What is a fixed amount you pay for a service, such as $25 for office visits?
co-insurance
co-pay
premium
claim
What is the definition of out-of-pocket maximum?
The amount of money your pockets can hold.
The deductible you have to pay for insurance.
The maximum amount you can pay out of pocket before insurance pays the rest.
The amount of money you pay to your insurance company every month.
Valerie had to go to the doctor 3 times with the co-payments being $25 each time she went. Her premium is $200/month. What was her medical bill for the month?
$275
$200
$25
$225
What is the Affordable Care Act?
a law that states everyone's healthcare is free
an act in a play by Shakespeare that makes fun of doctors
a law that requires all Americans to have health insurance
a law that requires all Americans to pay all health costs out of pocket
When can I change my health plan?
when I turn 30
only when the boss of the company allows it
at any time
during the open enrollment period
With Health Insurance,Co-insurance is usually figured as a
set amount
percentage
quotient
product
Steve has already paid his $1,000 deductible this year. He has no co-pay and 80/20 co-insurance. How much does he have to pay of a $278 doctor bill?
$222.40
$1,000
$55.60
none at all
If you are considered a high risk driver, you will probably pay a lower premium (monthly payment).
True
False
