CEFS Unit 1 Topic 10

The only compulsory insurance is:

• 
  life insurance.

• health insurance.

• motor insurance.

The insurance premium is:

• the amount the insurance company will pay out in the event of a claim.

• the amount the policyholder will pay for their cover.

• the amount the insurance company will charge in the event of a claim.

Insurance premium tax is payable:

• when the policyholder pays for their cover.

• when the insurance company pays out in the event of a claim.

• when the policyholder submits a claim.

An insurance company will:

• pay out for any claim made.

• assess each claim and only pay out if the policyholder is covered.

• only pay claims where the policyholder is not at fault in any way.

In the event of John crashing his car into Emma's, John's third party motor insurance will mean that:

• Both John and Emma will be able to claim from John's insurance company for injury or damage to their cars.

• Only John will be able to claim from his insurance company for injury or damage to his car.

• Only Emma will be able to claim from John's insurance company for injury or damage to her car.

Pay as you go car insurance is:

• always cheaper than traditional car insurance.

• sometimes cheaper than traditional car insurance.

• never cheaper than traditional car insurance.

Which of the following people is most likely to insist on you having buildings insurance?

• your landlord.

• your mortgage lender.

• your bank manager.

Personal belongings, electrical goods and furnishings should be protected with:

• buildings insurance.

• emergency insurance.

• contents insurance.

It is a good idea to have emergency savings to pay mandatory and essential expenses for:

• one month.

• two months.

• three months.

If people use payday lenders when unexpected events happen, it can result in them getting into further debt because these providers take a:

• short term, high cost approach to lending.

• long term, low cost approach to lending.

• short term, low cost approach to lending.