Reduced Wk 27:EOL:TEST Unit 8 Insurance - Tang Xiong | Library

Required

2

What is the primary purpose of insurance?

To transfer financial risk from an individual to an insurance company

To increase personal savings through premium payments

To provide guaranteed financial gain

Required

2

Which of the following best defines an insurance deductible?

The amount an insurer pays before coverage begins

The amount a policyholder pays before insurance covers expenses

The total cost of an insurance policy over time

Required

2

Why do health insurance plans typically have co-pays?

To reduce the total deductible amount

To discourage unnecessary medical visits

To cover the full cost of medical procedures

Required

2

When determining auto insurance premiums, insurers consider all the following EXCEPT:

Eye color

Driving history

Vehicle model

Required

2

Sasha recently purchased a homeowners insurance policy with a $2,000 deductible. A storm causes $7,500 in damage to the roof. How much will the insurance company pay?

$9,500

$5,500

$2,000

Required

2

Jackson’s car was broken into, and a laptop was stolen. Which insurance policy would most likely cover the loss?

Collision auto insurance

Homeowners or renters insurance

Liability auto insurance

Required

2

If a health insurance policy has a 20% co-insurance requirement after the deductible is met, how much would a patient owe for a $1,200 hospital bill if they have already met their deductible?

$120

$600

$240

Required

2

Omar was at fault in a car accident that injured another driver. His auto insurance policy has a bodily injury liability limit of $50,000 per person. If the injured driver sues and wins a $75,000 settlement, how much will Omar’s insurance pay?

$100,000

$75,000

$50,000

Required

2

Which of the following types of insurance is required in nearly every U.S. state for vehicle owners?

Uninsured motorist coverage

Collision insurance

Bodily injury liability insurance

Required

2

Evelyn wants to save money on health insurance. Which strategy would likely reduce her monthly premium?

Selecting a policy with no co-pays

Choosing a high-deductible plan

Opting for the lowest deductible available

Required

2

A life insurance policy’s cash value refers to:

The total amount paid in premiums over time

The payout beneficiaries receive after the policyholder's passing

The savings component available for withdrawal or loans

Required

2

What is the key benefit of disability insurance?

It provides compensation to an employee after being fired

It replaces lost income due to a disabling injury or illness

It pays for workplace-related injuries only

Required

2

Mateo’s apartment was severely damaged by a fire, making it unlivable for a month. His renters insurance includes loss of use coverage. What does this mean?

He will receive a full refund for his destroyed belongings

His insurance will pay his rent until repairs are completed

His policy will cover temporary housing expenses

Required

2

Which of the following scenarios would be covered by a standard homeowners insurance policy?

A guest slips on ice in the driveway and breaks their wrist

A small business run from home is sued by a customer

Leaky pipes slowly cause mold buildup over three years

Required

2

Harper is 24, single, and has no dependents. Which type of insurance would likely be the lowest priority for them?

Health insurance

Life insurance

Auto insurance (if they own a car)

Required

2

In the context of health insurance, what is an out-of-pocket maximum?

The most an insurance company will ever pay for a person’s claims

The maximum amount a person will pay for covered services in a year

The highest amount an individual must pay in one billing cycle

Required

2

Luis wants to switch to a more affordable car insurance policy. What might help lower his premium?

Enrolling in a defensive driving course

Filing more claims to prove he uses his insurance

Increasing his coverage limits

Required

2

Which of the following statements about umbrella insurance is true?

It provides additional liability coverage beyond other policies

It covers only flood and earthquake damage

It is required by law in most states

Required

2

Devin’s pet insurance policy has a $500 deductible and reimburses 80% of costs. His dog needed surgery that cost $2,000. How much will the insurance pay?

$1,500

$1,200

$2,000

Required

2

A health insurance marketplace is:

A medical service network owned by an employer

A government-run system for comparing and purchasing insurance plans

A directory listing doctors and hospitals in a local area

Required

2

Which type of insurance is most critical for a self-employed individual with no employer benefits?

Travel insurance

Health insurance

Identity theft insurance

Required

2

If Jamal’s homeowners insurance has a replacement cost policy rather than an actual cash value policy, what difference does it make?

His insurance will cover repairs only, not replacements

His payout will be based on the item’s depreciation value

His policy will pay enough to replace items at current market prices

Required

2

A high-deductible health insurance plan is typically paired with:

A Health Savings Account (HSA)

An employer-funded pension

A long-term disability plan

Required

2

Riley is considering purchasing long-term care insurance. This type of insurance helps cover:

Funeral expenses for policyholders

Nursing home or assisted living facility costs

Lost income due to a temporary disability

Required

2

If someone is found to be a high-risk driver, what is a likely consequence?

Their auto insurance premium will be higher

They will automatically be denied coverage

They will have their license revoked