WorksheetsInsurance Study Guide Quiz
Total questions: 18
Worksheet time: 14mins
What is a premium in insurance?
Your monthly payment to the insurance company
The amount you pay out-of-pocket before insurance helps
A small, fixed fee you pay each time you use a service
A percentage of the cost you pay while insurance covers the rest
What is a deductible in insurance?
The amount you pay out-of-pocket FIRST before insurance helps
Your monthly payment to the insurance company
A small, fixed fee you pay each time you use a service
A percentage of the cost you pay while insurance covers the rest
What is a copay in insurance?
A small, fixed fee you pay each time you use a service
Your monthly payment to the insurance company
The amount you pay out-of-pocket FIRST before insurance helps
A percentage of the cost you pay while insurance covers the rest
What is coinsurance in insurance?
You pay a percentage of the cost while the insurance company pays the rest
Your monthly payment to the insurance company
The amount you pay out-of-pocket FIRST before insurance helps
A small, fixed fee you pay each time you use a service
What is the business model of insurance?
Collecting more in premiums than they pay out in claims
Pooling money to pay for people who need help
Evaluating risk to decide coverage and charges
Paying for damage to your car after an accident
What is risk pooling in insurance?
Everyone pays into a pool to share costs between low-risk and high-risk individuals
Collecting more in premiums than they pay out in claims
Evaluating risk to decide coverage and charges
Paying for damage to your car after an accident
What is underwriting in insurance?
How insurance companies evaluate your risk to decide coverage and charges
Collecting more in premiums than they pay out in claims
Pooling money to pay for people who need help
Paying for damage to your car after an accident
What does collision coverage pay for?
Damage to your car after a car accident
Non-collision damage like theft or vandalism
Damage you cause to others
Stolen items and fire damage
What does comprehensive coverage pay for?
Non-collision damage like theft, vandalism, weather damage, or hitting a deer
Damage to your car after a car accident
Damage you cause to others
Stolen items and fire damage
What does liability insurance cover?
Damage you cause to others, including their car, injuries, and property
Damage to your car after a car accident
Non-collision damage like theft or vandalism
Stolen items and fire damage
What does renter’s insurance cover?
Stolen items, fire damage, and liability if someone gets hurt in your apartment
Losses that cost less than your deductible
Your roommate’s belongings
Damage to your car after a car accident
What does long-term disability insurance pay for?
Part of your income (40–60%) if you can’t work
Medical bills
Damage to your car after a car accident
Stolen items and fire damage
What does Social Security provide support for?
Elderly, disabled people, and survivors/dependents
Medical bills
Damage to your car after a car accident
Stolen items and fire damage
What is an alternative to cell phone insurance?
Save the same amount monthly in a savings account
Buy long-term disability insurance
Purchase renter’s insurance
Pay for collision coverage
What are the most essential insurance types for young adults?
Health insurance, auto insurance, and renter’s insurance
Life insurance and long-term disability insurance
Collision coverage and comprehensive coverage
Social Security and cell phone insurance
How are premiums calculated?
Based on age, driving record, health, location, and claims history
By pooling money to pay for people who need help
By evaluating risk to decide coverage and charges
By collecting more in premiums than paying out in claims
What insurance does Rory need?
What does liability insurance cover in Rocco’s accident?
