WorksheetsSSPFL9-Insurance Assessment
Total questions: 31
Worksheet time: 21mins
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…
Collecting more in premiums than they pay out in claims.
Investing the premiums they collect.
Charging high fees for policy changes.
Offering discounts for safe driving.
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/monthandhasa 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
8. Someone might choose to get long term disability insurance even if they already have health insurance because:
Health insurance does not cover lost income if you are unable to work due to a disability.
Long term disability insurance pays for all medical bills.
Health insurance and long term disability insurance are the same.
Long term disability insurance is required by law.
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.Youhavea 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 30,000andadeductibleof 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
Each of these is considered an "out-of-pocket" expense EXCEPT...
Medicaid generally provides insurance for which of the following groups of people?
The elderly or disabled
Individuals in low-income households
Anyone who wants to buy coverage from the Marketplace
Employees who have a government position
Your employer offers an employer-sponsored health insurance plan. Which of the following statements is TRUE?
You can only see doctors who are also employees of the same company
Your health insurance premiums will be paid directly from your paycheck, pre-tax
Your employer cannot fire you if you get sick or injured because you have employer-sponsored health care
You can remain on that health insurance plan even if you switch jobs
Which person will probably have the MOST expensive health insurance premiums?
Julian, who has 3 children and is eligible for Medicaid
Samantha, a widow who is eligible for Medicare
Patty, who works as an administrative assistant for an employer with a group plan
Robin, a high earning business owner who buys a plan for their whole family on the Marketplace
What type of auto insurance are you required to carry in almost every state (49 out of 50)?
Why is this a risky idea?
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
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
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
The sooner he starts paying for insurance, the sooner he will reach his maximum lifetime requirement and can stop paying altogether for coverage
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 low deductible plan with a high monthly premium
A high deductible plan with a low monthly premium
Your parents MUST keep you on their plan. They cannot legally remove you.
You do not need health insurance because you are healthy
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...
Risk pooling
Risk assessment
Premium collection
Claim management
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’sdeductibleis 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?
Lula pays 0,theinsurancepays 800
Lula pays 200,theinsurancepays 600
Lula pays 600,theinsurancepays 200
Lula pays 800,theinsurancepays 0
In general, how do insurance companies decide how much to charge an individual for their monthly premiums?
The company assesses the individual's risk factors and assigns higher premiums to higher risk individuals
The company looks at the individual's tax filings from the previous year to assess overall wealth and ability to pay
The company charges the same premium for every individual eligible for coverage
The company increases or decreases premium rates based on the stock market
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?
Health Insurance
Auto Insurance (if they have a car)
Your health insurance plan has a 20copayforcertaincoveredprescriptionmedications.Youarriveatthepharmacistandpickupyourprescription(whichiscoveredunderyourplan)whichhasalistpriceof 75. How much would you pay the pharmacy?
$0 since health insurance plans waive the cost of prescription drugs
$20
$55
$75
A standard renters insurance policy would cover each of the following EXCEPT...
A small TV and some sneakers, stolen in a robbery
A new window when a baseball breaks the original one
A lawsuit brought when a visitor hits their head on a low hanging light fixture
A week of hotel reservations when the tenant has to move out due to fire damage
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?
He will not need homeowners insurance, because owning a home is less risky than renting
His homeowners insurance will be LESS expensive than his renters insurance was
His homeowners insurance will be the same cost as his renters insurance was
His homeowners insurance will be MORE expensive than his renters insurance was
Which BEST describes what is meant by a health insurance marketplace?
An online directory that lists doctor and hospital contact information
The portal you use to register for employer-sponsored group plans
A website where you can compare and purchase health insurance plans
The place you go to pay your health insurance premiums
Jasmine has rented the same apartment for 10 years, and she’s never had to use her renter’s insurance even once. She wants to cancel the policy as a result, because it feels like she’s wasting money. Why is it a bad idea for Jasmine to cancel her renter’s insurance?
Because renter’s insurance protects her from unexpected events like theft, fire, or liability, which could happen at any time.
Because renter’s insurance is required by law for all renters.
Because renter’s insurance guarantees a refund after 10 years.
Because renter’s insurance increases the value of her apartment.
Can Ronald enroll in short-term disability insurance tomorrow and file the claim? Why or why not?
Yes, Ronald can enroll and file the claim immediately.
No, Ronald cannot enroll and file a claim on the same day due to waiting periods.
Yes, but only if he has a pre-existing condition.
No, because short-term disability insurance is only available during open enrollment.
Insurance companies charge more if they believe you are a “high risk” customer because:
they want to discourage people from buying insurance
high risk customers are more likely to make claims
they want to make more profit from high risk customers
high risk customers require less coverage
Insurance will pay the following amount toward fixing Rocco’s car:
$2,000
$500
$1,000
$3,000
Assuming you’re not able to change things about yourself, personally, how can you reduce the amount you pay for health insurance premiums?
By choosing a plan with a higher deductible
By improving your health habits
By changing your age
By moving to a different state
Rory has asked for advice on what types of insurance she needs and how to decide on coverage levels versus monthly premium costs. Which of the following is the best advice?
She should consider her personal needs and risks, compare coverage levels and premium costs, and choose a balance that fits her budget.
She should always choose the lowest premium regardless of coverage.
She should only get insurance if it is legally required.
She should select the highest coverage available without considering the cost.
