Review- Test 6

Which of the following presidents implemented Social Security?

• Ronald Reagan

• Franklin Delano Roosevelt

• Harry S Truman

• Herbert Hoover

Answer explanation

FDR implemented Social Security during the Great Depression, mostly to help retirees to avoid poverty.

In what year was Social Security first put into place?

• 1905

• 1915

• 1925

• 1935

Answer explanation

Social Security was implemented during the Great Depression.

What is the term for a cooperative, risk-sharing plan to protect ourselves and others against money losses?

• Investment

• Loss

• Risk

• Insurance

The least expensive life insurance is

• Term

• Straight-Life

• 20-payment Life

• 50-payment Life

What type of life insurance provides you with a chance to accumulate savings and always draw a benefit?

• Term

• Straight-Life

• Increasing-Term

• Unemployment Insurance

Answer explanation

Straight-life insurance is also known as permanent life insurance. Though it's more expensive than term insurance, you always get the benefit and you can build up an investment while providing insurance for your family in the event of your early death.

Why is it important to have insurance?

• It lowers your premiums.

• It maintains a good relationship with your insurance agent.

• It reduces your chances of having an accident.

• It reduces your financial losses if you have an accident.

Answer explanation

The main reason to get insurance is to minimize your losses (or those of your family) in the event of an unexpected issue.

New York State requires that all drivers have insurance to protect against losses, caused by drivers to other people. This type of insurance is called

• Comprehensive

• Collision

• Liability

• Disability

Answer explanation

Liability insurance covers damage to people and property that are legally our responsibility.

The contract between the insured person and the insurance company is called the

• policy

• premium

• beneficiary

• cash value

People purchase insurance in case unexpectedly bad things happen. Those "bad things" are also known as

• Risks

• Insurance

• Policies

• Premiums

Answer explanation

Risks are things like unexpected injuries, illnesses, or deaths. They can also be damages or losses to our property (homes and vehicles, for example).

Delia purchases a life insurance policy from Stella to make sure Delia's son Paul has financial support in the event that Delia passes away early. Stella is the

• Insurance Agent

• Premium

• Policyholder

• Beneficiary

Answer explanation

The insurance agent is the person who sells you the policy. You can also contact the insurance agent with questions about your policy.