Insurance Answers

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1
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Which is always a cost when buying insurance?

A
premium
B
deductible
C
co-payment
D
payout
2
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Insurance is a financial service that allows a

A
consumer to transfer all risk to a company.
B
company to control finances for a consumer.
C
consumer to share liability with a company.
D
company to maximize risk for a consumer.
3

What must happen in order for an insurance company to make a payout? Check all that apply. The insurance company must verify the claim.The insured party must file a claim.The insured party must purchase property.The insurance policy must be in place.The insured party must experience a covered loss.

A
The insurance company must verify the claim.
B
The insured party must file a claim.
C
The insured party must purchase property.
D
The insurance policy must be in place.
E
The insured party must experience a covered loss.
4

Which type of insurance policy would someone get to protect others only?

A
health insurance
B
life insurance
C
property insurance
D
disability insurance
5

An entrepreneur keeps backup funds in a savings account so that if their business experiences a loss, they will be able to recuperate. What type of risk management is this an example of?

A
reducing risk.
B
sharing risk.
C
avoiding risk.
D
maximizing risk.
6

The basic purpose of insurance is to provide

A
loans.
B
prevention.
C
protection.
D
liability.
7

Roland has purchased a new tablet. How can he reduce the risk of damage or misuse? Choose three correct answers.by using a screen protectorby letting his toddler play with itby using an antivirus appby using a protective caseby letting his friends borrow it

A
by using a screen protector
B
by letting his toddler play with it
C
by using an antivirus app
D
by using a protective case
E
by letting his friends borrow it
8

In what way does a deductible help an insurance company?

A
It adds to the company’s pool of funds.
B
It increases consumers' insurance premiums.
C
It lowers the payout the company has to make.
D
It reduces consumers' co-payments.
9

Maria's family has a health insurance plan. Her mother has $350 deducted from her paychecks each month.When Maria visited the doctor, her mother paid a $25 fee. The insurance company covered the rest of the cost of the visit.When Maria's mother went to the hospital, her family was responsible for paying the first $1,000 of the bill. After this payment, the insurance company covered the rest of the costs.

A
payout
B
deductible
C
co-payment
D
premium
10

When an insurance company needs to provide a payout, the money is removed from

A
the consumer’s income.
B
a bank loan.
C
a pool of funds.
D
the consumer’s account.

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