Insurance Answers

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1
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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.
2
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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
3

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.
4

After he bought a new car, Nelson purchased car insurance. He must pay $75 each month for the plan.Later that month, Nelson caused a car accident when he lost control of his vehicle. He was required to pay the first $500 of his repair costs, and then the insurance company covered the rest.

A
premium
B
co-payment
C
deductible
D
payout
5

Which questions about risk should someone ask before making a big purchase? Check all that apply.

A
What problems are most likely to happen?
B
What can be done to avoid liability?
C
What could go wrong?
D
What problems could be most damaging?
E
What option has no risk?
6

Roland has purchased a new tablet. How can he reduce the risk of damage or misuse? Choose three correct answers.

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
7

Which is always a cost when buying insurance?

A
premium
B
deductible
C
co-payment
D
payout
8

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

A
health insurance
B
life insurance
C
property insurance
D
disability insurance
9

Why does insurance often provide "peace of mind"?

A
People know their insurance coverage will help prevent accidents and damage.
B
People trust that they will make a profit if they pay insurance premiums.
C
People are not concerned about their health if they can pay for doctor's visits.
D
People are less worried when they know they have protection from risk.
10

The basic purpose of insurance is to provide

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

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Insurance Answers — OC27…