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Flashcards in insurance Deck (35)
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1

Good identity theft protection includes restoration services(t/f)

true

2

Comprehensive coverage takes care of damage to your car that is not caused by a collision.(t/f)

true

3

Which of the following statements about life insurance is true

Cash value insurance is normally for life and is more expensive than term life insurance because it funds a savings plan

4

Life insurance policy for a specific period of time is called

term

5

Which of the following is not a recommended way of lowering your car insurance premiums

drop your auto insurance altogether

6

Paperwork filed with an insurance company in order to get them to cover a loss for someone they insure

claim

7

Prepaid burial policies are a good idea(t/f)

false

8

The purpose of insurance is to:

transfer financial risk

9

Following the Five Foundations will help you to, one day, become self-insured(t/f)

true

10

Which of the following statements about disability insurance is false?

Disability insurance is not necessary if you have a good health insurance policy.

11

Which of the following statements about long-term care insurance is false?

You should not buy long-term care insurance until age 30.

12

Duplicate coverage, or any extra insurance on top of your existing insurance, is not necessary.(t/f)

true

13

Specific amount of money that you pay when insurance only covers a portion of costs

out of pocket expense

14

Which 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?

you lost your cell phone

15

Amount you must pay before you begin receiving any benefits from your insurance company

deductible

16

Which of the following is not a benefit of having a will?

you only need a will if you have a large estate

17

The time between the disabling event and the beginning of payments in your disability coverage is called:

elimination period

18

Which of the following policies would be a duplicate coverage for your health insurance policy?

cancer and hospital indemnity insurance

19

The recipient of assets passed on from the death of a friend or relative

beneficiary

20

Disability insurance offered through your employer is usually the most expensive coverage option.(t/f)

false

21

A legally enforceable declaration of how a person wishes his or her property to be distributed after death

will

22

Which of the following types of insurance is not recommended for a young single adult?

life isurance

23

A person becomes self-insured when:

their kids are grown,they have no debt and they have fully funded retirement

24

Which of the following is not a recommended way to save on your health insurance premium?

if you are young and healthy,you do not need health insurance

25

You are involved in a two-car accident in which you are at fault. The other driver is injured and your insurance covers the medical expenses of the victim. This type of insurance coverage is called:

liability

26

An amount of money you pay to help cover a portion of your medical costs

co-payment

27

Insurance that covers property damage and medical bills if you are at fault in a car accident or if someone gets hurt on your property

liability

28

The amount you pay monthly, quarterly, semiannually or annually to purchase different types of insurance

premium

29

Any insurance with cash value or that combines insurance with investments is a bad idea(t/f)

true

30

Which of the following is true?
-Mortgage life insurance is necessary if you are a homeowner.
-Any kind of duplicate insurance coverage is a bad idea
-Pet insurance is a good idea since pet emergencies can be very expensive.
-You can never be too safe-there is no bad insurance.

Any kind of duplicate insurance coverage is a bad idea.