Succeeding in the World of Work

Chapter 22: Understanding Insurance

Interactive Practice Tests

1
A legal contract between an insured person and the insurance company is called an
A)insurance policy
B)underwriter
C)exclusion
D)insurance premium
2
What do you submit to your insurance company after an automobile accident?
A)a policy
B)a claim
C)a premium
D)a driving record
3
Which type of insurance covers damage or injury caused by you to another person?
A)collision insurance
B)comprehensive insurance
C)liability insurance
D)life insurance
4
Losses or risks that an insurance policy will not cover are called
A)deductibles.
B)premiums.
C)exclusions.
D)claims.
5
One good way to keep down insurance costs is to
A)comparison shop.
B)cancel your auto insurance.
C)ask for no-fault insurance.
D)lower your deductible.
6
Liability insurance covers
A)property damage to your car, and your injuries.
B)your injuries, and protection for your dependents if you die.
C)theft, fire, and vandalism for your car.
D)damage to other cars or injuries to other people for which you are responsible.
7
A preferred provider organization (PPO) offers
A)lower costs than an HMO, but less choice of doctors.
B)higher costs than an HMO, but more choice of doctors.
C)lower costs than major medical coverage, but more choice of doctors.
D)higher costs than major medical coverage, but more choice of doctors.
8
In a health maintenance organization (HMO), members usually pay a small
A)deductible.
B)coinsurance.
C)copayment.
D)claim.
9
The person most likely to need life insurance is a(n)
A)unmarried person.
B)unemployed person.
C)married person without children.
D)married person with children.
10
A type of insurance that lets you borrow against a reserve of money is
A)term life insurance.
B)whole life insurance.
C)disability insurance.
D)liability insurance.
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