Insurance Unit Review

Front

What is co-insurance?

Back

Co-insurance is a percentage of the total cost that a person may pay for healthcare services after the deductible has been met.

Front

What is Medicare?

Back

Medicare is a government-supported health insurance program specifically designed for individuals aged 65 and older.

Front

How is risk shared in insurance?

Back

Risk is shared with other policyholders, meaning that the financial burden of claims is distributed among all insured individuals.

Front

What is unique about life insurance?

Back

Life insurance is the only type of insurance where the person paying for it will not receive any benefits while they are alive.

Front

True or False: An insurance company makes money if there are more claims than premiums coming in.

Back

False. An insurance company makes money when the premiums collected exceed the claims paid out.

Front

What is a deductible in insurance?

Back

A deductible is the amount a policyholder must pay out-of-pocket before the insurance company starts to pay for covered services.

Front

What is a premium in insurance?

Back

A premium is the amount of money that a policyholder pays to an insurance company for coverage.

Front

What is Medicaid?

Back

Medicaid is a government program that provides health coverage to low-income individuals and families.

Front

What is the purpose of renters insurance?

Back

Renters insurance provides financial protection for a tenant's personal property in case of theft, fire, or other damages.

Front

What does it mean to share risk in insurance?

Back

Sharing risk in insurance means that multiple policyholders contribute to a pool that covers the losses of any individual member.