Insurance Unit Test

Front

What is an insurance premium?

Back

Your monthly payment to your insurer, regardless of whether you use any services.

Front

The purpose of insurance is to

Back

transfer risk

Front

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

Back

Your height

Front

Insurance companies make money by...

Back

Collecting more in premiums than they need to pay out each year in claims

Front

Which of the following statements is TRUE about auto insurance premiums? Options: 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., Auto insurance premiums can vary from company to company, therefore, it is important to comparison shop for the best price and coverage.

Back

Auto insurance premiums can vary from company to company, therefore, it is important to comparison shop for the best price and coverage.

Front

Your renter's insurance policy costs $20/month and you have a $1,000 deductible before the insurance company will pay the claim. A thief breaks into your apartment and steals your $800 TV set. How much would your insurance company pay?

Back

$0

Front

Why would someone choose to get long term disability insurance even if they already have health insurance?

Back

Health insurance only covers medical bills, while long term disability will help pay for lost work with 40-60% of their income.

Front

In general, the ______ your car is worth, the ______ you will pay to insure it.

Back

more, more

Front

Generally, the ____________ likely you are to have an accident, the ____________ your insurance premium.

Back

more, higher

Front

How many claims can you make on a single life insurance policy?

Back

one