WorksheetsDay Five: Government Regulation and Insurance Quiz
Total questions: 20
Worksheet time: 10mins
What does the Credit CARD Act of 2009 require credit card companies to disclose to cardholders?
The cardholder's credit score
Due dates, interest amounts, fees, and minimum monthly payments
The cardholder's spending habits
The cardholder's annual income
Under the Credit CARD Act of 2009, how far must credit card companies stay away from college campuses?
500 feet
1000 feet
1500 feet
2000 feet
Which act entitles consumers to a free copy of their credit report each year?
Fair Credit Reporting Act
Equal Credit Opportunity Act
Consumer Protection Act of 1968
Truth in Lending Act
What is the main purpose of insurance?
To avoid paying premiums
To increase financial risk
To compensate for financial losses
To eliminate all risks
What is the term for the amount you pay out of pocket before your insurance covers a claim?
Coverage limit
Co-pay
Deductible
Premium
What strategy can reduce the cost of your insurance premium?
Decreasing the deductible
Increasing the deductible
Paying monthly instead of yearly
Adding riders
What is the purpose of the Truth in Lending Act?
To regulate unfair debt collection practices
To prevent discriminatory lending practices
To offer free credit reports annually
To provide consumers with information on the total cost of their loan before signing
What does the Equal Credit Opportunity Act prohibit?
Credit card fraud
Discriminatory lending practices
Redlining
Unfair debt collection practices
What is redlining?
A strategy to reduce credit card interest rates
A type of health insurance policy
A discriminatory practice of refusing mortgages in poor neighborhoods
A method of calculating insurance premiums
What is the cost of an insurance policy called?
Coverage limit
Deductible
Co-pay
Premium
What type of insurance covers stolen personal property from a child’s dorm room?
Renters insurance
Homeowners insurance
Mortgage insurance
Life insurance
What is the term for the money a beneficiary receives from a life insurance policy?
Death benefit or face value
Cash value
Deductible
Premium
What type of life insurance policy grows in value over time and provides cash value if canceled?
Term life insurance
Whole life insurance
Mortgage life insurance
Umbrella insurance
What is the main reason for buying life insurance?
To increase financial risk
To provide money to beneficiaries in case of death
To eliminate all risks
To avoid paying premiums
What type of insurance policy covers major personal liability losses?
Mortgage insurance
Health insurance
Umbrella insurance
Auto insurance
What factor can reduce the cost of car insurance?
Increasing the deductible
Adding riders
Paying monthly instead of yearly
Garaging a car and installing a security system
What part of auto insurance covers damage to someone’s property caused by your driving?
Collision coverage
Uninsured motorist coverage
Liability coverage
Comprehensive coverage
What is the term for the time between filing a claim and collecting benefits?
Coverage limit
Deductible period
Waiting period
Premium period
What type of insurance policy pays the full balance of your mortgage in the event of your death?
Umbrella insurance
Whole life insurance
Term life insurance
Mortgage life insurance
What type of insurance policy pays for a nurse to take care of you in your later years?
Health insurance
Long-term care insurance
Life insurance
Disability insurance
