CFM

Question 1

What is homeowner’s insurance?

Answer 1

A type of insurance that provides financial protection against damage to a home and its contents.

Question 2

What is covered with homeowner’s insurance?

Answer 2

Covers damage to the home, personal property, liability for injuries, and additional living expenses.

Question 3

Who needs homeowner’s insurance?

Answer 3

Anyone who owns a home or property.

Question 4

What is personal liability coverage in a homeowner’s policy?

Answer 4

Coverage that protects the homeowner from legal liability for injuries to others or damage to their property.

Question 5

What is renter’s insurance?

Answer 5

Insurance that provides coverage for a renter’s personal property and liability.

Question 6

What is flood insurance?

Answer 6

A type of insurance specifically covering losses due to flooding.

Question 7

What is a peril in homeowner’s insurance?

Answer 7

A specific risk or hazard covered by an insurance policy.

Question 8

What are the advantages and disadvantages of having homeowner’s insurance?

Answer 8

Advantages include financial protection and peace of mind. Disadvantages may include costs and deductibles.

Question 9

Give a real-life example of homeowner’s insurance.

Answer 9

Coverage for damages caused by a fire or natural disaster.

Question 10

What is life insurance?

Answer 10

A contract that pays out a sum of money upon the insured’s death.

Question 11

Who is protected with life insurance?

Answer 11

The beneficiaries designated by the policyholder.

Question 12

Who needs life insurance?

Answer 12

Individuals with dependents or financial obligations.

Question 13

What factors are used to determine your premium with life insurance?

Answer 13

Age, health, lifestyle, and coverage amount.

Question 14

Describe whole life insurance.

Answer 14

A type of permanent life insurance that provides coverage for the insured’s entire life and includes a savings component.

Question 15

What is term life insurance?

Answer 15

Life insurance that provides coverage for a specified term or period.

Question 16

How can people who invest in variable life insurance invest part of their premiums?

Answer 16

They can allocate premiums to various investment options within the policy.

Question 17

What are the advantages and disadvantages of having life insurance?

Answer 17

Advantages include financial security for dependents. Disadvantages may include cost and complexity.

Question 18

What is health insurance?

Answer 18

Coverage that pays for medical expenses.

Question 19

Who needs health insurance and why?

Answer 19

Everyone, to protect against high medical costs.

Question 20

Provide examples of health insurance being used.

Answer 20

Paying for doctor visits, surgeries, and prescription medications.

Question 21

What is a health insurance network?

Answer 21

A group of healthcare providers contracted with an insurance company.

Question 22

What are the advantages and disadvantages of having health insurance?

Answer 22

Advantages include access to medical care. Disadvantages may include premiums and out-of-pocket costs.

Question 23

What is auto insurance?

Answer 23

Coverage that protects against financial loss in the event of an accident involving a vehicle.

Question 24

Who needs auto insurance?

Answer 24

Anyone who owns and operates a vehicle.

Question 25

Provide auto insurance examples.

Answer 25

Coverage for accidents, theft, and damage to the vehicle.

Question 26

What are the advantages and disadvantages of having auto insurance?

Answer 26

Advantages include financial protection. Disadvantages may include costs and coverage limits.

Question 27

What is liability insurance?

Answer 27

Coverage that protects against claims resulting from injuries and damage to other people or property.

Question 28

What is collision insurance?

Answer 28

Coverage for damage to your vehicle resulting from a collision.

Question 29

What is comprehensive insurance?

Answer 29

Coverage for damage to a vehicle not involving a collision, such as theft or vandalism.

Question 30

What is personal injury protection?

Answer 30

Coverage that pays for medical expenses and lost wages due to injuries in an accident.

Question 31

What of the auto insurances are required by law?

Answer 31

Liability insurance is typically required by law.

Question 32

Define policyholder.

Answer 32

The individual or entity that owns an insurance policy.

Question 33

Define premium.

Answer 33

The amount paid for an insurance policy.

Question 34

Define copay.

Answer 34

A fixed amount paid by the insured for a covered service.

Question 35

Define deductible.

Answer 35

The amount the insured must pay out-of-pocket before insurance coverage kicks in.

Question 36

Define claim.

Answer 36

A request for payment from an insurance company for a covered loss.

Question 37

What is the difference between long term disability and health insurance?

Answer 37

Long term disability insurance provides income if a person cannot work due to a disability, while health insurance covers medical expenses.

Question 38

What is the difference between long term and short term insurance?

Answer 38

Long term insurance provides coverage for longer periods, while short term insurance covers a limited time frame.