WorksheetsInsurance Knowledge Assessment
Total questions: 13
Worksheet time: 7mins
The primary purpose of insurance is to .
Make a profit for insurance companies.
Increase government revenue.
Promote risky behavior.
How does renters’ insurance differ from homeowners’ insurance?
Renters insurance covers personal belongings and personal injury liability, while homeowners’ insurance covers these also along with the physical structure of the property.
Renters insurance is typically more expensive than homeowners’ insurance.
Homeowners insurance is only available for properties occupied by the legal owner of the property, while renters’ insurance is available for any rented property.
Renters insurance is required by law, while homeowners’ insurance is optional.
What is a potential benefit of whole life insurance?
It provides coverage for a specific number of years.
It offers the opportunity to build cash value over time.
It requires no premium payments.
It is the cheapest policy available for individuals over the age of 70.
Why might a person opt to purchase a term life insurance policy?
To accumulate cash value over time.
To provide coverage for a specific period at a lower cost.
To guarantee coverage for the entire lifetime of the insured.
To provide coverage for medical expenses.
What is the relationship between the insurance premium and deductible?
They are unrelated factors.
As the premium increases, the deductible increases.
As the premium decreases, the deductible decreases.
As the premium decreases, the deductible increases.
A person has a ten-year term life insurance policy. The policy will pay
The death benefit if the insured dies within the ten years.
The death benefit if the insured dies after the ten years.
A cash value of $250,000 at the end of ten years.
A cash value equal to the premiums paid over the ten years.
If a driver hits a deer and incurs damage to the vehicle. What type of auto insurance coverage typically pays for the repair?
Liability coverage.
Comprehensive coverage.
Collision coverage.
Acts of nature coverage.
Replacement coverage is insurance that
covers the cost of replacing damaged or stolen property with a new item of similar value.
provides coverage only for specific types of natural disasters.
reimburses the policyholder for the full purchase price of an item, regardless of depreciation.
covers the cost of repairing damaged property.
Which of the following statements best explains an HMO?
An organization that provides home maintenance services.
A type of health insurance plan that typically requires members to select a primary care physician and obtain referrals to see a specialist.
An organization that offers home mortgage options.
A type of retirement savings account.
Why might a person decide to purchase disability insurance?
To cover the cost of vacations if they are on sick leave.
To protect against the loss of income due to illness or injury.
To finance renovations for an older home.
To pay for the cost of unexpected medical expenses.
What kind of insurance policy is designed to offer financial support in case an employee cannot work due to a injury?
Health insurance
Disability insurance
Renter's insurance
Life insurance
What does 'No-fault insurance' imply?
The insurer does not need to prove fault to settle claims
Coverage for bodily injuries regardless of who is at fault
Insurance for only those accidents where the policyholder is at fault
Coverage for medical expenses only
