Insurance 2025

Match the correct insurance answers!

• The amount you pay for your health insurance every month.

• Co-Pay

• A flat fee that you pay on the spot each time you go to your doctor or fill a prescription.

• Premium

• The amount you pay for covered health care services before your insurance plan starts to pay.

• Deductible

Match the correct answers for these auto insurance questions / answers.

• cover the costs of the other driver's property and bodily injuries if you're found at fault

• Collision

• covers you in an accident with another vehicle or object if your car needs to be repaired

• Liability

• $ you're responsible for paying when you have a covered comprehensive or collision loss

• Deductible

• protects against damage to your vehicle caused by non-collision events

• Comprehensive

What factors impact the cost of your auto insurance premium? (choose 4 correct answers)

• Deductible amount

• The vehicle you are insuring

• Your credit score

• Your income

• 1. How many miles you drive per year

Answer explanation

The cost of auto insurance is influenced by the deductible amount, the vehicle being insured, your credit score, and how many miles you drive per year. These factors help insurers assess risk and determine premiums.

Carlos’s auto insurance policy includes limits of $20,000 per person for bodily injury, $40,000 total for all injuries per accident, and $10,000 for property damage. What does the $10,000 cover?

• Per person bodily injury

• Property damage per occurrence

• Per occurrence bodily injury limit

• Total amount of insured coverage

Answer explanation

The $10,000 limit specifically covers property damage per occurrence, meaning it is the maximum amount the policy will pay for damage to someone else's property in a single accident.

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

• 18

• 21

• 26

• 29

Answer explanation

Under the Affordable Care Act, children can remain on their parents' health insurance until they turn 26. This applies regardless of their marital status or financial independence, making 26 the correct answer.

How can you obtain health insurance? (Choose 3 correct answers)

• Buying from an insurance agent

• Shopping on HealthCare.gov (the Marketplace)

• Signing up at your doctor's office

• Through your employer

• Calling your congressperson

Answer explanation

You can obtain health insurance by buying from an insurance agent, shopping on HealthCare.gov, or through your employer. Signing up at your doctor's office and calling your congressperson are not valid methods.

23. Which FOUR of these options ARE likely covered by Renters Insurance? (pick 4)

• A fire forces you to stay in a hotel for two weeks

• 1. A guest slips on your floor and sues you for medical bills

• 1. The apartment building's roof is damaged in a storm

• Your laptop and sneakers stolen from your apartment

• Money to replace your xBox 3 if your apartment has a fire

Answer explanation

A standard renters insurance policy covers: ✓ Loss of use (hotel after fire) ✓ Personal liability (guest injury lawsuits) ✓ Personal property (stolen items, fire damage to belongings) It does NOT cover: ✗ Building damage (roof, walls, structure) - that's the landlord's responsibility

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

• True

• False

Answer explanation

True. Insurance operates on the principle of shared risk, where many individuals contribute to a pool, allowing for the coverage of losses incurred by a few. This risk pooling helps to stabilize costs for everyone involved.

What is the average monthly renter's insurance cost in the U.S.?

• $150/month

• $90/month

• $40/month

• $15/month

Answer explanation

The average monthly renter's insurance cost in the U.S. is approximately $15/month. This figure reflects the typical pricing for basic coverage, making it the correct choice among the options provided.

Insurance companies make money by...

• Refusing to pay out claims to policyholders

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

• Keeping costs low with minimal advertising

• Collecting money from the government

Answer explanation

Insurance companies primarily make money by collecting more in premiums than they pay out in claims. This ensures profitability, as they manage risk and expenses effectively.