insurance

Question 1

Good identity theft protection includes restoration services(t/f)

Answer 1

true

Question 2

Comprehensive coverage takes care of damage to your car that is not caused by a collision.(t/f)

Answer 2

true

Question 3

Which of the following statements about life insurance is true

Answer 3

Cash value insurance is normally for life and is more expensive than term life insurance because it funds a savings plan

Question 4

Life insurance policy for a specific period of time is called

Answer 4

term

Question 5

Which of the following is not a recommended way of lowering your car insurance premiums

Answer 5

drop your auto insurance altogether

Question 6

Paperwork filed with an insurance company in order to get them to cover a loss for someone they insure

Answer 6

claim

Question 7

Prepaid burial policies are a good idea(t/f)

Answer 7

false

Question 8

The purpose of insurance is to:

Answer 8

transfer financial risk

Question 9

Following the Five Foundations will help you to, one day, become self-insured(t/f)

Answer 9

true

Question 10

Which of the following statements about disability insurance is false?

Answer 10

Disability insurance is not necessary if you have a good health insurance policy.

Question 11

Which of the following statements about long-term care insurance is false?

Answer 11

You should not buy long-term care insurance until age 30.

Question 12

Duplicate coverage, or any extra insurance on top of your existing insurance, is not necessary.(t/f)

Answer 12

true

Question 13

Specific amount of money that you pay when insurance only covers a portion of costs

Answer 13

out of pocket expense

Question 14

Which of the following would not be a huge financial risk (and, therefore would not require insurance) if you had a full emergency fund of $500 or more?

Answer 14

you lost your cell phone

Question 15

Amount you must pay before you begin receiving any benefits from your insurance company

Answer 15

deductible

Question 16

Which of the following is not a benefit of having a will?

Answer 16

you only need a will if you have a large estate

Question 17

The time between the disabling event and the beginning of payments in your disability coverage is called:

Answer 17

elimination period

Question 18

Which of the following policies would be a duplicate coverage for your health insurance policy?

Answer 18

cancer and hospital indemnity insurance

Question 19

The recipient of assets passed on from the death of a friend or relative

Answer 19

beneficiary

Question 20

Disability insurance offered through your employer is usually the most expensive coverage option.(t/f)

Answer 20

false

Question 21

A legally enforceable declaration of how a person wishes his or her property to be distributed after death

Answer 21

will

Question 22

Which of the following types of insurance is not recommended for a young single adult?

Answer 22

life isurance

Question 23

A person becomes self-insured when:

Answer 23

their kids are grown,they have no debt and they have fully funded retirement

Question 24

Which of the following is not a recommended way to save on your health insurance premium?

Answer 24

if you are young and healthy,you do not need health insurance

Question 25

You are involved in a two-car accident in which you are at fault. The other driver is injured and your insurance covers the medical expenses of the victim. This type of insurance coverage is called:

Answer 25

liability

Question 26

An amount of money you pay to help cover a portion of your medical costs

Answer 26

co-payment

Question 27

Insurance that covers property damage and medical bills if you are at fault in a car accident or if someone gets hurt on your property

Answer 27

liability

Question 28

The amount you pay monthly, quarterly, semiannually or annually to purchase different types of insurance

Answer 28

premium

Question 29

Any insurance with cash value or that combines insurance with investments is a bad idea(t/f)

Answer 29

true

Question 30

Which of the following is true?

• Mortgage life insurance is necessary if you are a homeowner.
• Any kind of duplicate insurance coverage is a bad idea
• Pet insurance is a good idea since pet emergencies can be very expensive.
• You can never be too safe-there is no bad insurance.

Answer 30

Any kind of duplicate insurance coverage is a bad idea.

Question 31

Renter’s insurance is not necessary if you don’t have a lot of expensive things.(t/f)

Answer 31

false

Question 32

you should not buy identity theft protection that only provides credit report monitoring.(t/f)

Answer 32

true

Question 33

Describes the type of coverage in an insurance agreement

Answer 33

policy

Question 34

After high school, you should have the following types of insurance: auto, renter’s, health and long- term care insurance(t/f)

Answer 34

false

Question 35

Applies to the amount of protection you have through an insurance company in the event of a loss

Answer 35

coverage