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

  • term life
  • whole life
  • universal life
  • life

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

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

3. 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

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

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

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

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

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

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

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

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

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

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

9. _________ _________ 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

10. ________ ___________ __________ 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

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

  • deductible
  • medical
  • term life
  • cash value

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

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

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

  • beneficiary
  • life
  • deductible
  • health

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

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

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

  • life
  • term
  • medical
  • health

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

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

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

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

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

  • life
  • beneficiary
  • deductible
  • health

19. _____________ ___________ __________ 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

20. __________ ___________ __________ 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

21. ___________ ______________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

22. The amount paid for insurance is the

  • closing cost
  • premium
  • deductible
  • assessed value

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

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

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

  • emergency savings
  • beneficiary
  • claim
  • coverage

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

  • employee benefits
  • co-insurance
  • deductible
  • coverage

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

  • TRUE
  • FALSE

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

  • TRUE
  • FALSE

28. 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

29. 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.

30. 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

31. 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

32. 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

33. ______________ insurance provides financial protection against overwhelming medical expenses

  • Health
  • Car
  • Comprehensive
  • Medical

34. The out of pocket cost to the insured when a loss occurs is called...

  • Premium
  • Deductible

35. 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

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

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

37. What type of insurance coverage is considered specialized?

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

38. Which is NOT a source of Disability Income?

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

39. 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

40. 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

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

  • Cars
  • Poles
  • Signs
  • Medical Bills

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

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

43. Someone who receives money if an insured person dies

  • claim
  • beneficiary
  • dependent
  • employee benefits

44. This term pays for protection against loss of life, property, and finances.

  • collision
  • premium
  • insurance
  • deductible

45. The type of insurance that covers damage or loss to a vehicle from fire, theft, vandalism, or hail is called

  • term life insurance
  • bodily insurance
  • comprehensive
  • collision

46. The type of insurance that provides protection against financial loss from medical bills is called

  • health insurance
  • coinsurance
  • life insurance
  • premium

47. Insurance that protects your family against financial loss due to your death is

  • coinsurance
  • disability insurance
  • life insurance
  • comprehensive insurance

48. Bodily injury covers your liability for injury to

  • yourself
  • property
  • others
  • other cars

49. Provides payment to replace earnings during times when workers cannot work due to illness or injury

  • disability insurance
  • dependent
  • emergency savings
  • beneficiary

50. Employers may offer employee benefits in the form of products or services that add extra value for employees beyond earned wages

  • disability insurance
  • employee benefits
  • health insurance
  • automobile insurance

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