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- 1. Multiple ChoiceThe purpose of this action is to take a specific risk, which is detailed in the insurance contract, and pass it from one party who does not wish to have this risk, the insured, to a party who is willing to take on the risk for a fee, or premium, the insurer.A. Term life insuranceB. Whole life insuranceC. Universal life insuranceD. Transfer Of Risk
- 2. Multiple ChoiceA person buys a homeowner's insurance policy with a $250 deductible, which means the person willA. have to pay a quarterly premium of $250.B. have to pay the first $250 which will be deducted from the claim settlement paid by the insurance company.C. only receive payment from the insurance company of $250 for any single article damaged.D. not be responsible for the first $250 of the claimed damages.
- 3. Multiple ChoiceLucy has no insurance. The situation(s) should she consider insuring against first are:A. Death so her financial obligations are paidB. Losses resulting from an illness, accident, or disabilityC. Property losses and auto accidentsD. Auto collision, and burglary
- 4. Multiple ChoiceWhen a self-employed person decides to purchase disability insurance it is generally toA. lessen the possibility of becoming injured.B. protect against the financial effects of not being able to work.C. Separate valueD. Premium or annuity value
- 5. Multiple ChoicePat has a savings account and a car loan from a not-for-profit financial institution owned by its members. She is probably a member of what type of financial institution?Commercial BankCredit Union
- 6. Multiple ChoiceCollision coverage on your car insurance policy that will repair damages to your vehicle when something collides with your vehicle.Flexible expensesFixed expansesCollision coverage
- 7. Multiple ChoiceA person buys a flat screen, plasma, theater-like television. The person has homeowner?s insurance. Why would it be appropriate to add a personal property floater to that insurance?To reduce the premium on the homeowner?s insurance.To protect the person who owns the television from liability for damages.To show the insurance company a good faith investment has been made.To cover the cost of replacement should the television get damaged or stolen.
- 8. Multiple ChoiceFor the past five years, a person has had a $20,000 whole life insurance policy that has a cash value clause. The person decides to surrender the policy. At the time of surrender, the person will receiveone-fifth of the $20,000 face value.$20,000 less the premiums paid.a calculated amount of money which includes the premiums paid as well as the interest on that money.a calculated amount of money that must be converted to a term life insurance policy.
- 9. Multiple ChoiceA woman has just received a very expensive piece of jewelry. The woman has homeowner's insurance. Which statement would it be most appropriate for her to make to her insurance agent?A. "I think I need a personal property floater."B. "I think I should get speculative risk insurance."C. "I will deduct the cost of the jewelry from my premium."D. "I realize that if this jewelry is stolen it will be considered vicarious liability."
- 10. Multiple ChoiceThe only type of life insurance that does not develop a cash value is:A. Term life insuranceB. Whole life insuranceC. Universal life insuranceD. Variable universal life insurance
- 11. Multiple ChoiceSally took out a $50,000 life insurance policy. The $50,000 amount of coverage is called the:A. Cash valueB. Premium valueC. Death benefit or face valueD. Annuity value
- 12. Multiple Choice___________ , a simple four letter word, is the entire reason for the existence of the insurance industry.GoldRiskDangerLoss
- 13. Multiple Choice___ is the amount of money taken out of each paycheck for insurance coverage.Medicareco-paymentpremiumdeductible
- 14. Multiple ChoiceA patient may have met the required amount and insurance will begin to cover, but they will only cover a specific percentage of the expense such as an 80/20.Medicareco-insuranceco-paymentdeductible
- 15. Multiple ChoiceBefore insurance begins to cover a patient, the ___ must be paid first, the the insurance will begin to pay.MedicaidHMOPPOdeductible
- 16. Multiple ChoiceBefore leaving the health care facility, a patient is usually responsible for a specific amount of money known as a ___ for whatever services they received, regardless of the total cost and/or insurance coverage.co-paymentco-insurancedeductiblepremium
- 17. Multiple ChoiceIf injured on the job, __ insurance will cover treatment and reimburse lost wages.Medicareco-paymentdeductibleworkmens' compensation
- 18. Multiple Choice___ is a federal program for individuals over the age of 65, disabled for at least 2 years or ESRD.MedicareMedicaidHMOPPO
- 19. Multiple ChoiceSome large companies may use ___ where a contract is formed with certain health agencies to provide health care at reduced rates to employees.HMOPPOMedicaidMedicare
- 20. Multiple ChoiceIn order to keep costs at a minimum, some employers offer which work by preventing diseases through early detection and exams.HMOPPOMedicaidMedicare
- 21. Multiple ChoiceThe risks covered and amount of money paid for losses under an insurance policyemergency savingsbeneficiaryclaimcoverage
- 22. Multiple ChoiceSomeone who receives money if an insured person diesclaimbeneficiarydependentemployee benefits
- 23. Multiple ChoiceA formal request to an insurance company asking for a payment when the policyholder has an acciden, illness or injuryemergency savingscoverageclaimemployee benefits
- 24. Multiple ChoiceSomeone who relies on someone else for income and carebeneficiaryclaimdeductibledependent
- 25. Multiple ChoiceProvides payment to replace earnings during times when workers cannot work due to illness or injurydisability insurancedependentemergency savingsbeneficiary
- 26. Multiple ChoiceEmployers may offer employee benefits in the form of products or services that add extra value for employees beyond earned wagesdisability insuranceemployee benefitshealth insuranceautomobile insurance
- 27. Multiple ChoiceProvides money to pay for health care for illness, injury, or, in some cases, preventative careautomobile insurancedisability insurancehealth insurancepersonal insurance
- 28. Multiple ChoiceInsurance shifts the risk of big financial loss from the individual to the insurance company.TrueFalse
- 29. Multiple ChoiceIndividuals can aquire insurance from a(n)IndividualEmployerGovernment ProgramsCombination of Sources
- 30. Multiple ChoiceInsurance policy that covers the "real" costs associated with replacing personal belongings, structures, and vehicles.PropertyLiabilityLifeNone of the Above
- 31. Multiple ChoiceWhich type of insurance should you purchase at the age of 60?HealthLifeDisabilityLong-Term Care
- 32. Multiple ChoiceWhich type of insurance protects against loss due to death?LifeHealthDisabilityLong-Term Care
- 33. Multiple ChoiceWhich type of insurance rates is determined by the type of work you do?LifeHealthAutomobileDisability
- 34. Multiple Choice
Insurance coverage to protect you from damage to your car other than by collision or vehicle overturningFloaterCollisionComprehensiveLiability - 35. Multiple ChoiceCoverage added onto an existing policyFull CoverageOverinsuringUmbrellaComprehensive
- 36. Multiple ChoiceWhich coverage pays for injuries and damages to others only?ComprehensiveCollisionPersonal Injury ProtectionLiability
- 37. Multiple ChoiceTo ______ risk, you take measures to lessen the frequency or severity of losses that may occur.AvoidReduceShiftAssume
- 38. Multiple ChoiceThe possibility of a loss is calledRiskLiabilityInsuranceHazard
- 39. Multiple ChoiceRaising your deductible may be a good option when it comes to lowering your premium, but it is important to do a break-even analysis before making that decision.TrueFalse
- 40. Multiple ChoiceWhich 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?A Car AccidentA lost Cell PhoneMedical EmergencyStolen Identity
- 41. Multiple ChoiceThe time between the disabling event and the beginning of payments in your disability coverage is called:DeductiblePolicyElimination PeriodStop Gap
- 42. Multiple ChoiceApplies to the amount of protection you have through an insurance company in the event of a lossCoveragePolicyClaimLiability
- 43. Multiple ChoiceAmount you pay monthly, quarterly, semiannually or annually to purchase different types of insurance PremiumDeductibleOut-Of-Pocket ExpensesLiability
- 44. Multiple ChoicePaperwork filed with an insurance company in order to get them to cover a loss for someone they insure PolicyClaimCoverageLiability
- 45. Multiple ChoiceSpecific amount of money that you pay when insurance only covers a portion of costsOut of Pocket ExpensePolicyClaimPremium
- 46. Multiple ChoiceDOES LIFE INSURANCE COVER A TREE FALLING ON YOUR HOUSEYESNOMAYBEIF YOU ARE 17 YEARS OLD
- 47. Multiple ChoiceWhat is the main purpose of cost sharing?It reduces the cost of health insurance premiums.It prevents the providers from delivering expensive services without approval.It limits the insureds’ out-of-pocket costs.It controls the utilization of health care.
- 48. Multiple ChoiceCo-paymentCoordination of benefitsPortion of the cost of service to be paid by the insured (a set dollar amount)Term of conditions not covered by the insurance companyProvider bill for service
- 49. Multiple ChoiceDeductibleThe amount of money you must pay each year before the insurance company pays anythingA type of medical savings accountA type of policy in which you save for emergenciesA shared expense between the insured and the employer
- 50. Multiple ChoicePremiumPercentage of the allowed amount that is the patients responsibility.Fee paid for the health insurance coveragePurchased by an organization for the benefit of membersPortion of the cost of service to be paid by the insured
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