at least nine months of expenses set aside to cover costs of unexpected events
B
at least $500 set aside to cover costs of unexpected events
C
at least six months of expenses set aside to cover costs of unexpected events
2.
Match the word to the definition. "chance of loss from an event that cannot be entirely controlled"
A
unexpected event
B
risk
C
coverage
3.
What does insurance do?
A
transfers risk from an individual to an insurance organization
B
transfers risk from an insurance organization to an individual
C
equally distributes risk between an insurance organization and an individual
4.
What is a policy?
A
A contract that specifies what risks are covered and how much will be paid for losses
B
A contract that specifies what risks are covered
C
A contract that specifies how many unexpected events will be covered
5.
A policyholder is...
A
The insurance company
B
Person who owns the policy
C
The person who sells you the policy
6.
What is a premium?
A
Money paid to purchase the policy
B
amount of money paid out of pocket by policyholder before the insurance coverage begins
C
amount of money, after deductible, that is paid jointly by the insured and the insurance company
7.
Match the word to the definition: "paperwork submitted to insurance organization describing the accident, illness or injury"
A
policy
B
liability insurance
C
claim
8.
Which type of insurance covers your car?
A
health insurance
B
property insurance
C
automobile insurance
9.
What is the second part of the insurance process
A
Policyholder makes claim to insurance organization
B
An event resulting in loss occurs
C
The insurance company determines whether the accident is covered by the policy
10.
Eric is involved in a car accident and has $4780 worth of damage to his car. How much does he pay and how much does his insurance pay if he has a $400 deductible and 0% co-insurance?
A
Eric pays $400 and the company pays $780
B
Eric pays $400 and the company pays $4380
C
Eric pays $0 and the company pays $4780
11.
What does health insurance do?
A
provides money to pay for health care
B
provides money for emergency hospitalization
C
provides money for doctor appointments
12.
I'm concerned about my house that I bought getting damaged in a snowstorm. What kind of insurance should I get?
A
property insurance
B
extreme weather insurance
C
homeowner's insurance
13.
What is life insurance?
A
payment to beneficiaries if an insured person dies
B
payment to the children of the insured if an insured person dies
C
payment for live saving treatment
14.
What is a beneficiary?
A
someone who gives insurance money if the insured person dies
B
someone who receives insurance money if the insured person dies
C
someone who benefits from life insurance
15.
Why do deductibles and co-insurance exist?
A
So insurance companies can make extra money
B
So people have to pay for their mistakes still
C
So a policy holder won't increase the likelihood of an accident occurring to obtain money
16.
What are the sources you can get insurance from?
A
government, job
B
individual, job, government
C
individual, job
17.
Match the word to the definition: "unpaid work, such as child care or meal preparation"
A
Household production
B
Dependent
C
Household intern
18.
What covers this risk? "My grandma can't work and needs assistance to continue living in her home."
A
elderly care insurance
B
long-term care insurance
C
assisted living insurance
19.
What is disability insurance?
A
Payment to help sue a job for causing a disability
B
Payment to replace earnings during times when workers cannot work due to illness or injury
C
Payment to help disabled people with their hospital bills
20.
I got pretty sick and had $1560 in hospital bills. I have a $300 deductible and a 10% co-insurance. How much do I pay?
A
$426
B
$456
C
$1134
21.
What are employee benefits?
A
A beneficiary to an employer
B
Products or services that add extra value for employees beyond wages
C
Insurance for injured employees
22.
Match the word to the definition: "the provision of a product or service rather than cash"
