Ch. 22 - Insurance Test

What does an insurance policy explain?

• coverage

• exclusions

• conditions

• cost

• all of the these

The cost of the insurance policy is called the deductible.

• TRUE

• FALSE

Who receives the insurance benefit if something happens to you?

• your work

• beneficiary

• your bank

• insurance agent

By agreeing to pay a lower deductible, you decrease the insurance company's potential for loss and lower your premium.

• TRUE

• FALSE

Which of the following is(are) a government insurance program(s)?

• Unemployment

• Worker's Compensation

• Medicare/Medicaid

• Liability Insurance

What factors does the cost of homeowners or renters policy depend upon?

• building construction

• injuries within the house

• location and age of the home/building

• closeness to the fire station

• security or fire alarm systems

It's a good idea to take inventory of your possessions and photograph or video them yearly.

• TRUE

• FALSE

I just bought a brand new car and now I have a car payment (due to the bank loan I just got). What kind of auto insurance is the bank going to want me to have?

• liability only

• full coverage (includes all of the types of auto insurance)

• medical payments only

• comprehensive

What can you do to keep your auto insurance rate low?

• get good grades in school

• have a good driving record

• take driver's education classes

• have a car with safety features (airbags, antitheft device)

• all of these are ways to keep the cost low

Which health insurance plan allows you to choose a hospital and physician, but will require you to pay an insurance premium, deductible, and coinsurance?

• group plans

• managed care plans

• HMO plans

• Fee-for-Service plans