There are several types of insurance policies, each of which entails a contract between the insured and an insurance provider. The company pooled the risks of its clients to make payments more reasonable to the insured
Insurance plans are used to protect against the risk of large and small financial losses resulting from harm to the insured or his or her property, or from responsibility for damage or injury to a third party.
Features of Insurance
- Insurance is a contract (usually known as a policy) in which an insurer agrees to reimburse the third party for losses that have been brought on by certain occurrences or risks.
- There are many different types of insurance coverage. The most prevalent types of insurance are life, health, homeowners, and vehicle.
- The deductible, premium, and policy limit are the three main components of most insurance contracts.
Types of Insurance Policies
There are many different types of insurance plans to choose from, and almost anybody or any business can find an insurance company prepared to insure them—for a fee. Auto, homeowners, health, and life are the most frequent forms of personal insurance plans. Car insurance is required by law in the United States, and most people have at least one of these forms of insurance.
Businesses require specialized sorts of insurance plans that protect them against distinct dangers. A fast-food restaurant, for example, needs a policy for damage or injury resulting from deep-frying operations. A car dealer is not exposed to this kind of risk, but they are required to have insurance coverage in case a customer is injured or damaged when test driving a vehicle.
Following are some of the multiple choice questions on the Insurance with answers that will help the students in developing their knowledge.
1. Which of the following typically have the highest insurance premiums.
2. According to the Affordable Care Act, children can be on their parents' health insurance until what age?
3. _________ _________ 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
4. ________ ___________ __________ 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
5. _______ _______ is the amount of money you will receive if you cancel your whole life insurance policy
6. _______ _________ insurance also known as permanent life insurance, offers financial protection for your entire life
7. __________ insurance is financial protection for a family in case the main source of income dies
8. A(n) _________ is the amount of money you must pay each year before your insurance company starts paying
9. What does renters insurance cover?
10. 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.
11. 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.
12. What type of insurance coverage is considered specialized?
13. Which type of Life Insurance policy only pays a beneficiary when a person dies during a time period?
14. Which of the following is NOT covered by Property Damage Liability Coverage?
15. Insurance that protects your family against financial loss due to your death is
16. Surgical insurance covers the fees of
17. Which of the following is a way to reduce the cost of your insurance premium?
18. The total cost of buying insurance, usually per year
19. What year was Obamacare made?
20. A type of car insurance that covers damage to your OWN motor vehicle is
21. Of the four parts of auto insurance coverage, which part protects your from acts of God?
22. The purpose of insurance is to completely transfer risk to other people.
23. Requires the insured individual to pay a fixed percentage of the loss after the deductible has been paid
24. The risks covered and amount of money paid for losses under an insurance policy
25. Cash set aside that can be used to cover the costs of unexpected expenses
26. When you shop for life insurance, you should consider only the cost or premium you will pay.
27. Most experts in personal finance say that everyone should have life insurance no matter what age you are.
28. In which of the following scenarios will you obligated to pay the least amount of money out-‐of-‐pocket for medical expenses?
29. The amount paid for insurance is the
30. You fall off your bike and sprain your wrist.
31. After your knee surgery, you are unable to work for 3 months and you need help paying expenses while you're out of work
32. Your car is totaled during a hit and run accident
33. Food poisoning sends you and your family to the emergency room.
34. You hit a deer with your car and it needs to be repaired
35. Someone breaks into your apartment and steals your iPad.
36. You crash your car into another vehicle and hurt someone else in the car
37. 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?
38. Which is NOT a source of Disability Income?
39. The sprinkler system in your house goes off and it damages the flooring
40. An unexpected death of a family member occurs and results in funeral expenses
41. Your house is destroyed by a tornado and you need to rebuild it.
42. _______ ________ insurance is for a specified term, such as 5 years, or to a specified age
43. The __________ is the person who receives money from a life insurance policy if the insured dies
44. _______________ requires you to pay either a set amount or a certain percent of medical expenses
45. A(n) ____________ is a predetermined flat fee you pay for health care services
46. _____________ ___________ __________ is a prepaid health plan in which care providers contract with (or are) employees of the org. to provide you with services
47. __________ ___________ __________ is a group of selected health care providers who offer comprehensive services at preset reimbursement levels
48. ___________ ______________offers health care coverage where the health care provider is paid a predetermined dollar amount for the service given
49. ______________ insurance provides financial protection against overwhelming medical expenses
50. Another name for this type of insurance is a warranty
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