Wise Insurance

Match the terms to their definition

• Deductible

• The annual amount of money you must pay out-of-pocket for medical expenses before your insurance kicks in and starts to make payments

• Premium

• The maximum dollar amount that an insurer will pay for damages or losses under an insurance policy.

• Policy limit

• The monthly or annual amount you must pay in order to have insurance coverage

• Co-pay

• A flat fee you must pay towards the costs of medical visits. Your insurance provider pays the remaining balance.

A policy is a contract between the

• Policyholder and the injured person

• Driver and the government

• Consumer and the insurance company

• Consumer and the insurance agent

Which types of insurance are most appropriate for a single, working, 24-year-old who owns a house?

• Health insurance

• Homeowners insurance

• Life insurance worth $1,000,000

• Auto insurance

What is the primary purpose of insurance in a society?

• To provide financial protection against unforeseen events

• To increase wealth through investments

• To avoid paying taxes

• To ensure everyone has a job

Which of the following is a common type of insurance?

• Life insurance

• Grocery insurance

• Weather insurance

• Hobby insurance

What does a premium refer to in the context of insurance?

• The monthly or annual payment for insurance coverage

• The amount paid out after a claim

• The total value of an insurance policy

• The interest earned on an insurance policy

What is a deductible in an insurance policy?

• The amount you pay out-of-pocket before insurance covers the rest

• The total cost of the insurance policy

• The monthly payment for the insurance

• The amount the insurance company pays you

Which of the following is NOT typically covered by home insurance?

• Fire damage

• Theft

• Flood damage

• Routine maintenance

What is the role of an insurance adjuster?

• To assess the damage and determine the payout

• To sell insurance policies

• To collect premiums

• To provide legal advice

What is the term for the maximum amount an insurance company will pay for a covered loss?

• Policy limit

• Premium

• Deductible

• Claim