Insurance - Unit Test Review

Front

What is an insurance premium?

Back

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

Front

Which term refers to the percentage of covered medical expenses you are responsible for paying after your deductible is met?

Back

Co-insurance

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

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, If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will increase

Back

If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will increase

Front

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

Back

$0

Front

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?

Back

Comprehensive

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 compensate for lost work with a percentage of their income.

Front

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. You have a $75,000 coverage limit per person for Bodily Injury. How much will the insurance company pay?

Back

$58,000

Front

Frank has an auto policy with a coverage limit of $30,000 and a deductible of $1,000. He gets into an accident and the damages to his car total $6,200. How much will Frank need to pay out-of-pocket?

Back

$1,000