Insurance Test

What does collision insurance cover? Select all that apply

• Damage to your automobile from a collision with another car

• Damage to another person's property

• Damage to your automobile from a collision with another object

• Loss of personal belongings

• Medical expenses for bodily injury

What does actual cash value refer to?

• The original purchase price of an item

• The fair market value of the stolen or damaged property immediately preceding the loss

• The replacement cost of an item

• The sentimental value of an item

The amount of the loss which the insured is responsible to pay before benefits are payable:

What is a claim in insurance?

• A request for a new insurance policy

• Notice to an insurer that under the terms of a policy, a loss may be covered

• A payment made by the insurer

• A discount on the insurance premium

What does PPO stand for?

What types of insurance cover damage from fire, burglary, and vandalism? Select all that apply.

• Collision insurance

• Homeowner insurance

• Liability insurance

• Comprehensive insurance

What is the purpose of a deductible in an insurance policy?

• To increase the premium

• To reduce the premium by increasing the amount the insured pays before benefits

• To eliminate the need for a claim

• To cover all losses without any payment from the insured

What is Medicare?

• A federal health insurance program for medical expenses

• A private health insurance plan for dental care

• A state-run program for unemployment benefits

• A retirement savings account

What does HSA stand for?

The following describes Risk Management to likely avoid which scenario in the selections below:

Prioritize regular smoke alarm testing, maintaining clear space around heat sources like stoves, properly inspecting electrical cords, keeping flammable materials away from heat, having a fire escape plan, and ensuring everyone in the household knows how to respond in case of a fire. 

• House Flood

• House Fire

• Vehicle Fire

• Collision Coverage