About Insurance

Following are some of the multiple choice questions on the Insurance with answers that will help the students in developing their knowledge.

Insurance MCQ

1. Which of the following typically have the highest insurance premiums.

  • Young, inexperienced drivers
  • Older, experienced drivers
  • Drivers who have with safe driving records
  • Drivers who travel long distances

2. Of the four parts of auto insurance coverage, which part protects your from acts of God?

  • Comprehensive
  • Liability
  • Collision
  • Medical Payments/Bodily Injury

3. According to the Affordable Care Act, children can be on their parents' health insurance until what age?

  • Until they get a full time job
  • 22
  • 26
  • 28

4. The purpose of insurance is to completely transfer risk to other people.

  • TRUE
  • FALSE

5. Cash set aside that can be used to cover the costs of unexpected expenses

  • emergency savings
  • emergency spending
  • emergency fraud
  • emergency share

6. The risks covered and amount of money paid for losses under an insurance policy

  • emergency savings
  • beneficiary
  • claim
  • coverage

7. Requires the insured individual to pay a fixed percentage of the loss after the deductible has been paid

  • employee benefits
  • co-insurance
  • deductible
  • coverage

8. Most experts in personal finance say that everyone should have life insurance no matter what age you are.

  • TRUE
  • FALSE

9. When you shop for life insurance, you should consider only the cost or premium you will pay.

  • TRUE
  • FALSE

10. In which of the following scenarios will you obligated to pay the least amount of money out-­‐of-­‐pocket for medical expenses?

  • You have no insurance.
  • You have health insurance with a $500 deductible.
  • You have auto insurance with a $700 deductible.
  • You have health insurance with a $1,500 deductible.

11. What does renters insurance cover?

  • The damage to the property
  • Earthquakes
  • Personal items the tenant owns
  • If a burglar breaks in and he/she is injured as a result

12. This type of insurance protects against damage to the car OR injury to persons in the car caused by a driver who carries no insurance.

  • collision
  • comprehensive
  • property
  • uninsured motorists

13. If you can not work due to a health condition or injury, this type of insurance will pay you a portion of the income you lose.

  • disability
  • health
  • premium
  • hospitalization

14. The amount paid for insurance is the

  • closing cost
  • premium
  • deductible
  • assessed value

15. Someone breaks into your apartment and steals your iPad.

  • Homeowners Insurance
  • Liability Insurance
  • Comprehensive Insurance
  • Renters Insurance

16. You hit a deer with your car and it needs to be repaired

  • Liability Insurance
  • Comprehensive Insurance
  • Collision Insurance
  • Life Insurance

17. Food poisoning sends you and your family to the emergency room.

  • Liability Insurance
  • Disability Insurance
  • Life Insurance
  • Health Insurance

18. Your car is totaled during a hit and run accident

  • Uninsured Motorist Insurance
  • Life Insurance
  • Comprehensive Insurance
  • Collision Insurance

19. After your knee surgery, you are unable to work for 3 months and you need help paying expenses while you're out of work

  • Disability Insurance
  • Health Insurance
  • Life Insurance
  • Automobile Insurance

20. You fall off your bike and sprain your wrist.

  • Disability Insurance
  • Automobile Insurance
  • Health Insurance
  • Life Insurance

21. You crash your car into another vehicle and hurt someone else in the car

  • Bodily Injury Liability
  • Property Damage Liability
  • Collision Insurance
  • Comprehensive Insurance

22. Which of the following is NOT covered by Property Damage Liability Coverage?

  • Cars
  • Poles
  • Signs
  • Medical Bills

23. You have a $20 copay every time you go to the doctor. You have a $250 deductible, and a $1000 annual premium for health care. How much money do you have to pay out of pocket before insurance kicks in?

  • $20
  • $100
  • $250
  • $1000

24. Which type of Life Insurance policy only pays a beneficiary when a person dies during a time period?

  • Term Life Insurance
  • Whole Life Insurance
  • Variable Life Insurance
  • Universal Life Insurance

25. Which is NOT a source of Disability Income?

  • Worker's Compensation
  • Private Insurance
  • Social Security
  • University

26. What type of insurance coverage is considered specialized?

  • Floods and earthquakes
  • Stolen or destroyed property
  • Loss of Use
  • Property Damage from a fire

27. The sprinkler system in your house goes off and it damages the flooring

  • Renters Insurance
  • Homeowners Insurance
  • Umbrella Policy
  • Disability Insurance

28. Your house is destroyed by a tornado and you need to rebuild it.

  • Homeowners Insurance
  • Renters Insurance
  • Life Insurance
  • Liability Insurance

29. An unexpected death of a family member occurs and results in funeral expenses

  • Long-term care Insurance
  • Disability Insurance
  • Life Insurance
  • Liability Insurance

30. _________ _________ insurance is a combination of a life insurance policy & a savings acct; it covers the insured for his or her lifetime and any amt the insured pays over the minimum premium goes into an investment acct that earns interest

  • traditional plan
  • whole life
  • term life
  • universal life

31. ________ ___________ __________ is a whole life insurance policy that is paid up after a specified number of years, or until the insured reaches a certain age, but offers lifetime protection

  • health maintenance organization
  • preferred provider organization
  • limited payment policy
  • cash value

32. _______ _______ is the amount of money you will receive if you cancel your whole life insurance policy

  • deductible
  • medical
  • term life
  • cash value

33. _______ _________ insurance also known as permanent life insurance, offers financial protection for your entire life

  • term life
  • whole life
  • universal life
  • life

34. The __________ is the person who receives money from a life insurance policy if the insured dies

  • beneficiary
  • life
  • deductible
  • health

35. _______ ________ insurance is for a specified term, such as 5 years, or to a specified age

  • universal life
  • term life
  • cash value
  • whole life

36. A(n) ____________ is a predetermined flat fee you pay for health care services

  • co-insurance
  • whole life
  • co-payment
  • term

37. __________ insurance is financial protection for a family in case the main source of income dies

  • life
  • term
  • medical
  • health

38. _______________ requires you to pay either a set amount or a certain percent of medical expenses

  • co-insurance
  • co-payment
  • life term
  • term life

39. A(n) _________ is the amount of money you must pay each year before your insurance company starts paying

  • life
  • beneficiary
  • deductible
  • health

40. _____________ ___________ __________ is a prepaid health plan in which care providers contract with (or are) employees of the org. to provide you with services

  • preferred provider organization
  • health maintenance organization
  • life insurance
  • non-life insurance

41. __________ ___________ __________ is a group of selected health care providers who offer comprehensive services at preset reimbursement levels

  • health maintenance organization
  • co-payment
  • preferred provider organization
  • co-insurance

42. ___________ ______________offers health care coverage where the health care provider is paid a predetermined dollar amount for the service given

  • term life
  • whole life
  • cash value
  • traditional plan

43. ______________ insurance provides financial protection against overwhelming medical expenses

  • Health
  • Car
  • Comprehensive
  • Medical

44. Another name for this type of insurance is a warranty

  • Product insurance
  • Health insurance
  • Life Insurance
  • Home Insurance

45. The people who need this the most generally have kids, and always have someone relying on their income

  • Product Insurance
  • Auto insurance
  • Life Insurance
  • Health insurance

46. This is what you have to pay before the insurance company will pay anything

  • coverage
  • dues
  • deductible
  • policy

47. This type of insurance should pay if you severely burn your finger on a toaster and need to go to the hospital

  • Life
  • Health
  • Product
  • Homeowners

48. The total cost of buying insurance, usually per year

  • Premium
  • coverage
  • deductible
  • policy

49. What is the main purpose of insurance?

  • to follow the law
  • to get weathly
  • For investment purposes
  • To reduce risk

50. What year was Obamacare made?

  • 2018
  • 2010
  • 2008
  • 2016

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