Insurance

Question 1

premium

Answer 1

under the policy, the insurer agrees to assume an identified risk for a fee; what you pay to get into the policy

Question 2

Indemnification

Answer 2

putting the policy holder back in the same financial condition they were in before the loss occurred

Question 3

3 steps to identify risk

Answer 3

1. identify risks of loss
2. assess seriousness of risks
3. handle risks

Question 4

deductible

Answer 4

specified amount of a loss that you must pay before insurance steps in

Question 5

property owners 3 types of risks

Answer 5

hazards
crimes
liability

Question 6

Endorsement

Answer 6

written amendment to an insurance policy

Question 7

Personal Property Floater

Answer 7

insurance coverage for the insured moveable property wherever it may be located

Question 8

Liability coverage (house)

Answer 8

insurance to protect against claims for bodily injury to another person or property (even unwanted guests)

Question 9

Attractive nuisance

Answer 9

a dangerous thing that attracts children (pools, fire pit, trampoline)

Question 10

What are premiums based on in auto insurance

Answer 10

-model, style and age
-driver classification
-location of driver and car
-distances driven
-purpose of driving
-grades
-previous tickets
-age, sex, marital status

Question 11

Types of Auto Insurance

Answer 11

Liability
collision
comprehensive
PIP
Uninsured coverage

Question 12

Liability Insurance (auto)

Answer 12

protects against claims for bodily injury to another person or property; required by law

Question 13

Collision Coverage

Answer 13

protects your own car against damage from accidents (it’s your own fault)

Question 14

Comprehensive

Answer 14

protects you from damage to your car from causes other than collisions (like animals)

Question 15

PIP

Answer 15

personal injury protection; pays for medical costs of the insured and passengers

Question 16

Uninsured

Answer 16

pays for your injuries when the other driver is legally liable but unable to pay

Question 17

No fault insurance

Answer 17

laws that set up a system of compensation for auto accidents that doesn’t require a legal determination of who’s fault

Question 18

Umbrella insurance

Answer 18

supplements your basic auto and property liability coverage by expanding limits and including additional risks

Question 19

COBRA

Answer 19

law that allows you to keep your insurance after getting laid off

Question 20

HSA

Answer 20

health savings account; employee benefit program that allows employees to set aside money to help pay deductibles during the year that’re not covered by insurance

Question 21

dental and vision insurance

Answer 21

not included with regular health insurance

Question 22

HMO

Answer 22

health maintenance organization (offers prepaid medical care to members)

Question 23

PPO

Answer 23

preferred provider organization (doctors who come together to provide care for set fees)

Question 24

Medicare

Answer 24

gov sponsored health insurance for people over 65

Question 25

medicaid

Answer 25

gov sponsored health insurance for people with low income

Question 26

Life insurance

Answer 26

provides funds to the beneficiaries when the insured dies

Question 27

Incontestable clause

Answer 27

after a certain period of time, insurance can't question things

Question 28

Double indemnity

Answer 28

the beneficiary is paid double the face amount of the insurance policy

Question 29

Can you cash out life insurance

Answer 29

almost always, no

Question 30

will filing a claim raise your insurance

Answer 30

yes

Question 31

can some healthcare require doctors

Answer 31

yes

Question 32

3 main insurable risks

Answer 32

people liability property

Question 33

stop loss provision

Answer 33

sets a maximum out of pocket expense

Question 34

Coordination of benefits

Answer 34

insurances working together if you have more than one policy

Question 35

you hit a biker and they are injured

Answer 35

liability

Question 36

You get t-boned and you injured

Answer 36

PIP

Question 37

Someone gets mad and hits another car, so they have to pay for damages

Answer 37

liability

Question 38

hit a pole and car is damaged

Answer 38

collision

Question 39

run a red, and they have no insurance

Answer 39

uninsured

Question 40

someone hits your mirror off

Answer 40

comprehensive

Question 41

weather

Answer 41

comprehensive

Question 42

hit a deer and then swerve and hit another car

Answer 42

collision

Question 43

you hit a deer and swerve into the ditch

Answer 43

comprehensive