Name _____________________________________ Date ...



Name _____________________________________ Date ________________ Hour _______

1. Driving home from school one day, you swerved to miss a cat and ran into a tree. The repairs are expensive. What type of automobile insurance coverage will reimburse the damages to your car?

A . Collision

B. Liability

C. Comprehensive

D. Underinsured motorist

2. Referring to managing risk, what does it mean to transfer it?

A. To take measure to prevent loss

B. To set aside resources to cover potential loss

C. To shift the possibility of loss to another person

D. To take measures to eliminate the cause of potential loss

3. In general, who would most need life insurance?

A. A single person just beginning a career

B. A young married couple with small children

C. A working couple with grown children living on their own

D. A retired person who is marries and has investments

4. At your young age, what are the two types of insurance most necessary for you?

A. Liability and renters’

B. Travel and liability

C. Automobile and disability

D. Health and automobile

5. Lupe needs to pay $123 per month in order to purchase a health insurance policy. This monthly payment is known as the:

A. Deductible

B. Co-insurance

C. Premium

D. Moral Hazard

6. Which of the following best describes the benefits of having insurance?

A. The policyholder may become better off financially if an accident occurs

B. Insurance combined with emergency savings provides a sense of financial security and peace of mind.

C. The policyholder no longer has to worry about paying for financial losses resulting from an accident

D. It is required by law to purchase insurance so the benefits do not matter.

7. Insurance can be purchased to protect one from which of the following losses?

A. Stock market losses

B. Health care expenses

C. Maintaining the price of your home

D. Car maintenance

8. At the first of the year, Tanya received her first medical bill. It totaled $1000. Her health insurance policy has a $500 deductible and 20% co-insurance. How much of the bill will Tanya be responsible to pay?

A. $0, insurance will cover the entire medical bill

B. $500

C. $600

D. $700

9. The beneficiary of a life insurance policy is the individual who:

A. Sold the policy

B. Purchased the policy

C. Is the executor of the insured’s estate

D. Receives any proceeds if the insured person dies

10. As part of James’s new job, his employers will provide health, life, and disability insurance. Access to this insurance is provided in addition to his regular salary. This is known as:

A. Coverage

B. Employee benefits

C. Household production

D. Government programs

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