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Types of Insurance: Advantages and Disadvantages

Total questions: 87

Worksheet time: 51mins

Name
Class
Date
1.

Which statement best describes an advantage of life assurance and insurance?

a)

Meets legal requirements for operating a motor vehicle

b)

Covers cancellation fees for delayed international flights

c)

Provides peace of mind to family after bereavement

d)

Protects contents both inside and outside the homeowner’s property

2.

A driver chooses the lowest premium car insurance. Which trade-off is most likely, based on typical policy structures?

a)

No legal requirement to carry documents

b)

Higher excess payable on any claim

c)

No third-party liability coverage

d)

Guaranteed replacement for all stolen items

3.

You plan a two-week trip abroad with expensive electronics and pre-booked tours. Which insurance benefit most directly mitigates these combined risks?

a)

Legal compliance for vehicle operation and road tax

b)

Protection for belongings and cover for cancellations

c)

Unlimited reimbursement for pre-existing conditions abroad

d)

Lifetime income to dependents if you never travel

4.
Of the four parts of auto insurance coverage, which part protects only the other person involved in an accident?
a)
Liability
b)
Comprehensive
c)
Collision
d)
Medical Payments/Bodily Injury
5.
Of the four parts of auto insurance coverage, which part will pay for repairing your car?
a)
Liability
b)
Comprehensive
c)
Collision
d)
Medical Payments/Bodily Injury
6.
Of the four parts of auto insurance coverage, which part protects your from acts of God?
a)
Comprehensive
b)
Liability
c)
Collision
d)
Medical Payments/Bodily Injury
7.
The color of your vehicle can increase the cost of your insurance premiums.
a)
True
b)
False
8.
The amount of money you have to pay out of your own pocket before the insurance pays is called the _____________
a)
Premium
b)
Estimate
c)
Deductible
d)
Co-Pay
9.
The amount you pay for an insurance policy.
a)
Rider
b)
Premium
c)
Deductible
d)
Co-Pay
10.
Which of the following is a way to reduce the cost of your insurance premium?
a)
Good grades
b)
Number of miles you drive
c)
Where you live
d)
All answers are correct
11.

Which of the following does NOT effect the cost of your car insurance?

a)

Your Age

b)

Gender

c)

Driving Record

d)

Drivers Test Score

12.

Which of the following is a way to lower your insurance premium?

a)

have a good driving record

b)

be involved in sports

c)

have a parent with you at all times

d)

buy a sports car

13.

Car B is not insured, what is one way Car A can have the damages paid for.

a)

If car A has liability coverage

b)

If car A has Under-insured Motorist coverage

c)

If car A has Uninsured Motorists coverage

d)

If car A has Comprehensive coverage

14.

Who needs auto insurance?

a)

Nobody

b)

People that think they will get into an accident.

c)

All people who drive cars.

d)

People who can afford it.

15.

A formal request made by the insurance policyholder to the insurance company for payment or services covered by the insurance policy.

a)

Claim

b)

Accident

c)

Premium

d)

Coverage

16.

An type of car insurance policy that provides complete protection.

a)

Deductible

b)

Comprehensive

c)

Liability

d)

Total

17.

A payment made monthly, twice a year, or yearly, for an insurance policy.

a)

Premium

b)

Copay

c)

Tax

d)

Benefit

18.

Chance or possibility of injury, damage, or loss that someone may want an insurance policy to cover.

a)

Debt

b)

Risk

c)

Premium

d)

Agent

19.
Insurance to protect your personal home.
a)
comprehensive 
b)
renter's
c)
property damage
d)
homeowner’s 
20.
Insurance to protect your personal items in your rented apartment or rented house.
a)
homeowners
b)
renters
c)
property
d)
liability
21.
Insurance that helps cover your income from a job when you can no longer do your job due to health reasons.
a)
life
b)
medical
c)
long term care
d)
disability
22.
Insurance that will pay someone you have chosen in the event you die.
a)
long-term care
b)
life
c)
risk
d)
broad collision
23.

A financial product purchased by many people facing a similar risk to protect against the risk of larger losses is called:

a)

insurance

b)

emergency savings

c)

policy

d)

premium

24.
The amount paid for insurance is the
a)
closing cost
b)
premium
c)
deductible
d)
assessed value
25.
Insurance that protects your family against financial loss due to your death is
a)
coinsurance
b)
disability insurance
c)
life insurance
d)
comprehensive insurance
26.
The type of insurance that covers damage or loss to a vehicle from fire, theft, vandalism, or hail is called
a)
term life insurance
b)
bodily insurance
c)
comprehensive
d)
collision
27.

It's tornado and storm season. The house you live in now needs roof repairs after the hail damage. Which insurance would be used?

a)

Home Liability

b)

Home Property

c)

Renter's Liability

d)

Renter's Property

28.

Contract between the person and insurance company

a)

Policy

b)

Policy holder

c)

Premium

d)

Risk

29.
A formal request to an insurance company asking for a payment when the policyholder has an acciden, illness or injury
a)
emergency savings
b)
coverage
c)
claim
d)
employee benefits
30.
This type of insurance protects against damage to the car OR injury to persons in the car caused by a driver who carries no insurance.
a)
collision
b)
comprehensive
c)
property
d)
uninsured motorists
31.
You are required by law to have car insurance.  
a)
True
b)
False
32.

Which of the following vehicles would most likely have the highest premium?

a)

economic 4-door sedan

b)

new sports car

c)

used mini-van

d)

used hybrid car

33.

Car insurance is compulsary by law

a)

True

b)

False

34.

Which is NOT an insurance provider?

a)

AXA

b)

Direct line

c)

LV

d)

Compare the market

35.

Which type of insurance is likely to be the lowest priority for a single, working, 24-year-old?

a)

Health insurance

b)

Disability insurance

c)

Life insurance

d)

Auto insurance

36.

The federal agency that oversees insurance companies is

a)

The Federal Trade Commission

b)

The Department of Transportation

c)

The Consumers Union

d)

Insurance companies are regulated on a state-by-state basis

37.

What role does insurance play in financial planning?

a)

It guarantees that income and assets are protected

b)

It helps build and maintain one's credit score

c)

It helps cover day-to-day expenses

d)

It grows in value and appreciates over time

38.

The out of pocket cost to the insured when a loss occurs is called...

a)

Premium

b)

Deductible

39.

This professional analyzes statistics and uses them to calculate risks and premiums.

a)

Agent

b)

Actuary

c)

Claims Clerk

d)

Underwriter

40.

A stone hits your windshield. Which type of coverage would likely cover this expense?

a)

Collision

b)

Liability

c)

Comprehensive

d)

None

41.

Each of these factors impacts your insurance premium EXCEPT...

a)

Deductible amount

b)

The vehicle you are insuring

c)

Your credit score

d)

Your income

42.

Which of the following wouldn't save you money on your auto insurance premium?

a)

Decrease your deductible

b)

Reduce or eliminate optional insurance on an older vehicle

c)

Maintain a good credit history

d)

Bundle your insurance with other policies

43.

Jennifer has an auto policy of $20,000/$40,000/$10,000. The $10,000 covers

a)

Per person bodily injury

b)

Property damage per occurrence

c)

Per occurrence bodily injury limit

d)

Total amount of insured coverage

44.

A policy is a contract between the

a)

Policyholder and the injured person

b)

Driver and the government

c)

Consumer and the insurance company

d)

Consumer and the insurance agent

45.

Under current law, until what age can a child stay on their parents' health insurance?

a)

18

b)

21

c)

26

d)

29

46.

Your health insurance copay is

a)

Amount paid out of pocket before your insurance coverage

b)

Paid by the insurer

c)

Applied on an annual basis

d)

A fixed amount of money you pay each time you use your plan

47.

How can you obtain health insurance?

a)

From an insurance agent or through the Health Insurance Marketplace

b)

Through your bank or credit union

c)

Signing up at your family doctor's office

d)

Remaining on your parents' plan if you are under age 30

48.

Which of the following would be covered under a renter's insurance policy?

a)

Damage to the exterior of the property

b)

Medical bills of another person who is injured on the property

c)

Your roommate's personal belongings in the rental unit

d)

Damage to a detached shed on the property

49.

The FDIC insured deposit limit is

a)

$150,000

b)

$200,000

c)

$250,000

d)

$300,000

50.

What information is typically listed on an insurance policy?

a)

Your credit score

b)

Actual Cash Value of the property being insured

c)

A list of your outstanding debts

d)

The policy period

51.

True or False: Insurance is based on the concept of shared risk, or risk pooling.

a)

True

b)

False

52.

Each of the following is TRUE about Social Security EXCEPT...

a)

It replaces the need for health and life insurance

b)

It replaces part of your income when you retire

c)

It replaces part of your income if you become disabled

d)

It replaces part of your income if you die leaving survivors

53.

What is the average monthly renter's insurance premium cost in the U.S.?

a)

$150/month

b)

$90/month

c)

$40/month

d)

$15/month

54.

Which insurance coverage is required by law?

a)

Homeowners insurance

b)

Auto insurance

c)

Renters insurance

d)

Disability insurance

55.
Provides payments for both liability and property insurance on a vehicle
a)
disability insurance
b)
automobile insurance
c)
coverage
d)
deductible
56.
Someone who receives money if an insured person dies
a)
claim
b)
beneficiary
c)
dependent
d)
employee benefits
57.
A formal request to an insurance company asking for a payment when the policyholder has an acciden, illness or injury
a)
emergency savings
b)
coverage
c)
claim
d)
employee benefits
58.
Requires the insured individual to pay a fixed percentage of the loss after the deductible has been paid
a)
employee benefits
b)
co-insurance
c)
deductible
d)
coverage
59.
The risks covered and amount of money paid for losses under an insurance policy
a)
emergency savings
b)
beneficiary
c)
claim
d)
coverage
60.
Someone who relies on someone else for income and care
a)
beneficiary
b)
claim
c)
deductible
d)
dependent
61.
Provides payment to replace earnings during times when workers cannot work due to illness or injury
a)
disability insurance
b)
dependent
c)
emergency savings
d)
beneficiary
62.
Cash set aside that can be used to cover the costs of unexpected expenses
a)
emergency savings
b)
emergency spending
c)
emergency fraud
d)
emergency share
63.
Employers may offer employee benefits in the form of products or services that add extra value for employees beyond earned wages
a)
disability insurance
b)
employee benefits
c)
health insurance
d)
automobile insurance
64.
Provides money to pay for health care for illness, injury, or, in some cases, preventative care
a)
automobile insurance
b)
disability insurance
c)
health insurance
d)
personal insurance
65.

A legal contract that transfers risk from a policyholder to an insurance provider.

a)

Premium

b)

Claim

c)

Loss

d)

Insurance Policy

e)

Limit

66.

What you pay the insurance company for covering your RISK.

a)

Premium

b)

Claim

c)

Loss

d)

Deductible

e)

Limit

67.

Your notice to the insurance company that a loss has occurred.

a)

Premium

b)

Claim

c)

Loss

d)

Deductible

e)

Limit

68.

The cost in dollars of property damage or injuries covered in your policy.

a)

Premium

b)

Claim

c)

Loss

d)

Deductible

e)

Limit

69.

The maximum amount you will receive for a specific type of coverage.

a)

Premium

b)

Claim

c)

Loss

d)

Deductible

e)

Limit

70.

What you pay out of pocket before the insurance company pays your claim.

a)

Premium

b)

Claim

c)

Loss

d)

Deductible

e)

Limit

71.

Pays for theft, or damage to your car not caused by a collision, i.e., vandalism, weather.

a)

Comprehensive

b)

Collision

c)

Bodily Injury

d)

Medical or personal injury

e)

Property damage liability

72.

Pays for damage to your car caused by hitting something,  i.e., a wall, vehicle.

a)

Comprehensive

b)

Collision

c)

Bodily Injury

d)

Medical or personal injury

e)

Property damage liability

73.

Pays for injuries that happen to others in an auto accident that is your fault.

a)

Comprehensive

b)

Collision

c)

Bodily Injury

d)

Medical or personal injury

e)

Property damage liability

74.

Pays accident-related medical bills for you and your passengers, regardless of who’s at fault.

a)

Comprehensive

b)

Collision

c)

Bodily Injury

d)

Medical or personal injury

e)

Property damage liability

75.

Pays for damage to others’ property resulting from an auto accident that is your fault.

a)

Comprehensive

b)

Collision

c)

Bodily Injury

d)

Medical or personal injury

e)

Property damage liability

76.

Pays for injuries caused by a driver who doesn’t have insurance.

a)

Uninsured Motorist

b)

Underinsured Motorist

c)

Bodily Injury

d)

Medical or personal injury

e)

Property damage liability

77.

Pays for injuries caused by a driver who doesn’t have enough insurance to cover your loss.

a)

Uninsured Motorist

b)

Underinsured Motorist

c)

Bodily Injury

d)

Medical or personal injury

e)

Property damage liability

78.

Operator of the insured auto or any licensed person who has  permission to drive.

a)

Driver

b)

Passenger

c)

Pedestrian

d)

Bicyclist

79.

Person inside the auto, other than the driver, injured in a covered accident.

a)

Driver

b)

Passenger

c)

Pedestrian

d)

Bicyclist

80.

Person walking or running outside the auto who suffers a loss due to a covered accident.

a)

Driver

b)

Passenger

c)

Pedestrian

d)

Bicyclist

81.

A statement detailing the premium you will pay for the specific coverage you request.

a)

Quote

b)

Agent

c)

Direct

d)

Indirect

82.

A local professional paid by an insurance company to sell policies.

a)

Quote

b)

Agent

c)

Direct

d)

Indirect

83.

Purchase from the insurance company without the help of an agent.

a)

Quote

b)

Agent

c)

Direct

d)

Indirect

84.

Which of the following is NOT a required coverage in Pennsylvania?

a)

Comprehensive

b)

Medical Benefits

c)

Bodily Injury Liability

d)

Property Damage Liability

85.

Kaylee drove a

a)

Bicycle

b)

Motorcycle

c)

Honda Civic

d)

Kia Rio

e)

Toyota Tundra Pickup

86.

Why is it important to have auto insurance?

a)

Because the law requires it.

b)

Because it helps limit financial losses when an accident occurs.

c)

Because it helps you to be prepared for the unexpected.

d)

Because it plays an important role in your financial security.

e)

All of the above.

87.

Which of the following is likely to reduce the cost of your premium

a)

Speeding Ticket

b)

An at fault accident

c)

Being on the honor roll

d)

Driving under the influence

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