WorksheetsInsurance test
Total questions: 45
Worksheet time: 26mins
What is Insurance?
Protection against unexpected loss
A type of financial institution
A financial place that will pay for everything
An investment
What is Pet Insurance?
Pays for the funeral cost for your pet
Pays for pet show events
Pays for everything to do with your pet
Protects you from bills in the event that your pet needs to go to the vet
Pet Insurance only pays for a pet’s wellness/preventive care
True
False
All health insurance policies are required to cover basic health services like an annual physical exam before your deductible is met.
True
False
Insurance companies can chare higher premiums for people with pre-existing conditions.
True
False
government subsidized insurance for individuals below the poverty line
medicare
medicaid
Obamacare
government subsidized insurance for senior citizens
medicare
medicaid
Obamacare
The term used to describe the individual who is covered by the insurance is:
Insurer
Insured
J&L buy life insurance on each other because they are partners in business. J buys out L a year later. Can J collect as beneficiary if L dies later?
Yes if the policy is still in effect
No, because J has no insurable interest
Which type of insurance is likely to be the lowest priority for a single, working, 24-year-old?
Health insurance
Disability insurance
Life insurance
Auto insurance
What role does insurance play in financial planning?
It guarantees that income and assets are protected
It helps build and maintain one's credit score
It helps cover day-to-day expenses
It grows in value and appreciates over time
The out of pocket cost to the insured when a loss occurs is called...
Premium
Deductible
A stone hits your windshield. Which type of coverage would likely cover this expense?
Collision
Liability
Comprehensive
None
Each of these factors impacts your insurance premium EXCEPT...
Deductible amount
The vehicle you are insuring
Your credit score
Your income
Which of the following wouldn't save you money on your auto insurance premium?
Decrease your deductible
Reduce or eliminate optional insurance on an older vehicle
Maintain a good credit history
Bundle your insurance with other policies
Under current law, until what age can a child stay on their parents' health insurance?
18
21
26
29
How can you obtain health insurance?
From an insurance agent or through the Health Insurance Marketplace
Through your bank or credit union
Signing up at your family doctor's office
Remaining on your parents' plan if you are under age 30
Which of the following would be covered under a renter's insurance policy?
Damage to the exterior of the property
Medical bills of another person who is injured on the property
Your roommate's personal belongings in the rental unit
Damage to a detached shed on the property
What information is typically listed on an insurance policy?
Your credit score
Actual Cash Value of the property being insured
A list of your outstanding debts
The policy period
Which insurance coverage is required by law?
Homeowners insurance
Auto insurance
Renters insurance
Disability insurance
What are some coverage options for home insurance?
Flood insurance, earthquake insurance, tornado insurance
Travel insurance, pet insurance, business insurance
Car insurance, health insurance, life insurance
Dwelling coverage, personal property coverage, liability coverage, and additional living expenses coverage
What factors can affect home insurance premiums?
Distance to the nearest grocery store
Number of bedrooms
Color of the house
Location, age, construction materials, security features, and claims history
Why is home inventory important for insurance?
To make it easier to clean the house
To impress friends and family
To have a record of all the items purchased
To accurately assess the value of belongings in case of loss or damage.
What are some common exclusions in a home insurance policy?
Tornadoes, hurricanes, and hailstorms
Burglary, vandalism, and fire
Pet damage, mold, and water leaks
Earthquakes, floods, and normal wear and tear
How does the location of a home affect insurance premiums?
The location of a home only affects property taxes, not insurance premiums
The location of a home has no impact on insurance premiums
Insurance premiums are only affected by the size of the home
Insurance premiums are affected by the location of a home due to factors such as crime rate, natural disaster risk, and proximity to emergency services.
What is the purpose of liability coverage in home insurance?
To provide legal advice for homeowners
To provide financial protection in case of injury or property damage
To offer discounts on home improvement services
To cover the cost of home maintenance
Flood insurance is a separate policy from your home insurance.
True
False
You really should purchase life insurance during this time of your life
Teenage Years
College Years
When raising & supporting a family
Right before you die
What does personal property coverage in a renters insurance policy typically include?
Only electronics and jewelry
Furniture, clothing, and electronics
Structural damages to the building
Liability for injuries
What is the primary purpose of liability coverage in renters insurance?
To cover damages to your personal property
To protect against claims if someone is injured in your rental
To cover the cost of rent if the rental is uninhabitable
To insure the building against natural disasters
Which of the following is NOT typically covered by a standard renters insurance policy?
Theft of personal belongings
Water damage from plumbing leaks
Damage from earthquakes
Fire damage
How can landlords ensure their tenants are insured?
Ask them politely
Write it into the lease
Sue them
All of the above
How should you determine the limits of your policy?
An educated guess
Trust your agent
Take an inventory
Look at your neighbor's policy
How do deductibles affect claim payouts?
They don't
Deductibles are added to payouts
Deductibles are subtracted from payouts
None of the above
Who needs renters insurance?
College students living off campus
Seniors in assisted living homes
Large families
All of the above
