WorksheetsInsurance - Unit Review Personal Finance
Total questions: 25
Worksheet time: 13mins
Name
Class
Date
1.
1. What is an insurance premium?
a)
Your monthly payment to your insurer, regardless of whether you use any services
b)
A list of the procedures covered by your insurance carrier
c)
An added cost you pay in order to receive higher-quality services
d)
The amount you pay out-of-pocket for a specific procedure or service
2.
2. Which term refers to the percentage of covered medical expenses you are responsible for paying after your deductible is met?
a)
Deductible limit
b)
Premium
c)
Out-of-network fees
d)
Co-insurance
3.
3. When setting your premium, your car insurance company may consider each of the following EXCEPT...
a)
How many miles you drive per year
b)
Your age
c)
Your driving record
d)
Your height
4.
4. Insurance companies make money by...
a)
Refusing to pay out claims to policyholders
b)
Collecting money from the government
c)
Collecting more in premiums than they need to pay out each year
d)
Keeping costs low with minimal advertising
5.
5. Which of the following statements is TRUE about auto insurance premiums?
a)
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
b)
If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will decrease
c)
Auto insurance premiums are a fixed price across all insurance companies
d)
If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will increase
6.
6. Your renter's insurance policy costs $20/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?
a)
$0
b)
$200
c)
$800
d)
$1,000
7.
7. 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?
a)
Bodily injury liability
b)
Property liability
c)
Collision
d)
Comprehensive
8.
8. Why would someone choose to get long term disability insurance even if they already have health insurance?
a)
Long term disability only covers medical bills, while health insurance will help compensate for lost work with 40-60% of their income
b)
Long term disability insurance plans can also extend coverage to family members and pets
c)
Health insurance only covers regular check ups, while long term disability insurance also covers emergencies
d)
Health insurance only covers medical bills, while long term disability will help compensate for lost work with a percentage of their income
9.
9. 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?
a)
$0
b)
$17,000
c)
$58,000
d)
$75,000
10.
10. 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?
a)
$0
b)
$1,000
c)
$6,200
d)
$30,000
11.
11. Each of these is considered an "out-of-pocket" expense EXCEPT…
a)
Your monthly premium
b)
A copay of $15 to fill a prescription
c)
A $1000 deductible if you're in an auto accident
d)
Excess bills from a car accident once you've gone over your maximum coverage limit
12.
12. Medicaid generally provides insurance for which of the following groups of people?
a)
The elderly or disabled
b)
Individuals in low-income households
c)
Anyone who wants to buy coverage from the Marketplace
d)
Employees who have a government position
13.
13. Your employer offers an employer-sponsored health insurance plan. Which of the following statements is TRUE?
a)
You can only see doctors who are also employees of the same company
b)
Your health insurance premiums will be paid directly from your paycheck, pre-tax
c)
Your employer cannot fire you if you get sick or injured because you have employer-sponsored health care
d)
You can remain on that health insurance plan even if you switch jobs
14.
14. Which person will probably have the MOST expensive health insurance premiums?
a)
Julian, who has 3 children and is eligible for Medicaid
b)
Samantha, a widow who is eligible for Medicare
c)
Patty, who works as an administrative assistant for an employer with a group plan
d)
Robin, a high earning business owner who buys a plan for their whole family on the Marketplace
15.
15. What type of auto insurance are you required to carry in almost every state (49 out of 50)?
a)
Insurance if you damage your own property
b)
Insurance if you cause injury to another person
c)
Insurance in case you get into an accident with someone who does not have insurance
d)
Insurance if you cause injury to yourself
16.
16. Bruce has just graduated from college and decides that instead of paying for insurance, he'll work on building up his emergency fund. This way, if something goes wrong, he can just pay for it using cash. Why is this a risky idea?
a)
It is mandatory to have auto, health, life, disability, and renters/home insurance, so he'll have to pay 5 penalties per year for not enrolling in these insurance types
b)
An accident or illness can strike at any time and be quite expensive, so it's possible he'd need a big sum of money well before his emergency fund was large enough
c)
Having insurance not only protects you financially, but also physically, so he'll be less likely to experience illness or accident if he has insurance
d)
The sooner he starts paying for insurance, the sooner he will reach his maximum lifetime requirement and can stop paying altogether for coverage
17.
17. Your parents tell you that on your 22nd birthday, they would like for you to get your own health insurance. You are very healthy, are not taking any prescription medicines, and generally only see your doctor for your annual physical. What type of health insurance is likely to be best for you?
a)
A low deductible plan with a high monthly premium
b)
A high deductible plan with a low monthly premium
c)
Your parents MUST keep you on their plan. They cannot legally remove you.
d)
You do not need health insurance because you are healthy
18.
18. Insurance companies operate by charging individuals different prices for coverage depending on their risk levels. Then, they collect everyone's monthly premiums together and use the money to make payments when people file a claim (for example, someone is in an auto accident or needs to see a doctor). This concept is known as…
a)
Comprehensive coverage
b)
Risk pooling
c)
Underwriting
d)
Risk management
19.
19. Lula’s got a pet dog, for whom she bought an accident and illness pet insurance policy three months ago. The dog steps on a mouse trap set out by neighbors and needs his first vet services of the year, totaling $800. Lula’s deductible is $1000, her reimbursement rate is 75%, and her coverage limit is $15,000. How much does Lula pay, and how much does the insurance pay?
a)
Lula pays $0, the insurance pays $800
b)
Lula pays $200, the insurance pays $600
c)
Lula pays $600, the insurance pays $200
d)
Lula pays $800, the insurance pays $0
20.
20. In general, how do insurance companies decide how much to charge an individual for their monthly premiums?
a)
The company assesses the individual's risk factors and assigns higher premiums to higher risk individuals
b)
The company looks at the individual's tax filings from the previous year to assess overall wealth and ability to pay
c)
The company charges the same premium for every individual eligible for coverage
d)
The company increases or decreases premium rates based on the stock market
21.
21. Which of the following insurance coverage options would be the lowest priority for a typical single person, with no children, 1-2 years out of high school?
a)
Health Insurance
b)
Auto Insurance (if they have a car)
c)
Life Insurance
d)
Renter's Insurance (if they are renting an apartment)
22.
22. Your health insurance plan has a $20 copay for certain covered prescription medications. You arrive at the pharmacist and pick up your prescription (which is covered under your plan) which has a list price of $75. How much would you pay the pharmacy?
a)
$0 since health insurance plans waive the cost of prescription drugs
b)
$20
c)
$55
d)
$75
23.
23. A standard renters insurance policy would cover each of the following EXCEPT…
a)
A small TV and some sneakers, stolen in a robbery
b)
A new window when a baseball breaks the original one
c)
A lawsuit brought when a visitor hits their head on a low hanging light fixture
d)
A week of hotel reservations when the tenant has to move out due to fire damage
24.
24. Finn moves from a rented apartment into his very first house. What should he expect regarding the cost of homeowners insurance compared to renters insurance?
a)
He will not need homeowners insurance, because owning a home is less risky than renting
b)
His homeowners insurance will be LESS expensive than his renters insurance was
c)
His homeowners insurance will be the same cost as his renters insurance was
d)
His homeowners insurance will be MORE expensive than his renters insurance was
25.
25. Which BEST describes what is meant by a health insurance marketplace?
a)
An online directory that lists doctor and hospital contact information
b)
The portal you use to register for employer-sponsored group plans
c)
A federal- or state-run website with the individual health insurance plans available in a given state
d)
Any doctor’s office or hospital that shares a physical location with other medical providers
100 %
