UNIT 4.1: INSURANCE BASICS, AUTO and HEALTH

A type of risk management that protects you from losing money if something happens to you or your property is called...?

• inflation

• insurance

• warranty​​

• deductibles​

The price you pay regularly to keep an insurance policy in force is called the...?​

• premium

• deductible

• co-pay

• subscription

​Policyholders combine their premium payments to share the risk of loss with each other ​in a...?

• CD account

• lake

• credit report

• pool

Before insurance pays for a claim, the policyholder must pay for...?

• losses ≤ deductible​

• losses > deductible

• losses ≥ claim

Raising the deductible on a policy causes the premium to...?

• stay the same

• increase

• decrease

• become unpredictable

The 6 types of insurance are auto, property, life, long-term care, health, and...?

• federal deposit insurance.

• disability insurance.

• predictability insurance.

• predatory lending insurance.

Wearing a seatbelt, not texting when driving, and driving carefully are examples of...?

• risk management

• warranties

• liability claims

• term life beneficiaries

In a car accident, collision insurance covers...?

• damage to someone else’s property​.

• damage to someone else’s car​.

• your injuries.

• damage to your car.

Answer explanation

-- Collision auto insurance covers damage to your own car when you hit something like a tree or pole.

*Collision does not cover injuries.

-- Your liability auto insurance covers other drivers' injuries and their cars.

An uninsured driver hits Rafael's truck. What type of coverage would protect Rafael?​

• state motorist coverage​

• whole life coverage

• uninsured or no-fault motorist coverage​

• insolvent motorist coverage​

You have a car accident, but you do not have insurance coverage.

Who is liable (responsible) for damage to your car and your injuries?​

• you

• the state government

• the other driver's collision insurance

• Federal Insurance Deposit Corporation