Insurance 2024

Front

The federal agency that oversees insurance companies is

Back

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

Answer explanation

Insurance companies are regulated on a state-by-state basis, not by a federal agency like the Federal Trade Commission or the Department of Transportation.

Front

What role does insurance play in financial planning?

Back

It guarantees that income and assets are protected

Answer explanation

Insurance guarantees that income and assets are protected, making it an essential component of financial planning.

Front

Which of the following wouldn't save you money on your auto insurance premium?
- Decrease your deductible
- Reduce or eliminate optional insurance on an older vehicle
- Maintain a good credit history
- Bundle your insurance with other policies

Back

Decrease your deductible

Answer explanation

Decreasing your deductible wouldn't save you money on your auto insurance premium as it typically leads to higher premiums.

Front

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

Back

Property damage per occurrence

Answer explanation

The $10,000 covers Property damage per occurrence, which is the limit for damage to someone else's property in an accident.

Front

A policy is a contract between the

Back

Consumer and the insurance company

Answer explanation

A policy is a contract between the consumer and the insurance company, making this the correct choice.

Front

Until what age can a child stay on their parents' health insurance?

Back

26

Answer explanation

A child can stay on their parents' health insurance until the age of 26, as per current regulations.

Front

Your health insurance copay is

Back

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

Answer explanation

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

Front

What is covered under a renter's insurance policy?

Back

Medical bills of another person injured on the property

Answer explanation

Renter's insurance policies typically cover the medical bills of another person injured on the property, making it the correct choice.

Front

The FDIC insured deposit limit is

Back

$250,000

Answer explanation

The FDIC insured deposit limit is $250,000, as it provides insurance coverage up to this amount per depositor per bank.

Front

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

Back

True

Answer explanation

Insurance is based on shared risk, or risk pooling, where the risk is spread among a group of people to reduce the financial impact on any one individual.