2015 Ch 9 Personal Finance

1.

1 point

Describes the type of coverage in an insurance agreement

co-pay

policy

deductible

premium

2.

1 point

Your auto insurance policy is labeled as 100/300/100. What does the 300 stand for?

Property Damage

Bodily Injury Per Person

Bodily Injury Per Accident

3.

1 point

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

fee

co-pay

deductible

premium

4.

1 point

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:

comprehensive

liability

uninsured motorist protection

collision

5.

1 point

Life insurance policy for a specific period of time is called

universal

term

level

whole life

6.

1 point

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

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

Long-term care insurance is not the same as disability or short -term medical care.

At least 69% of people over the age of 65 will require long -term care at some point.

A good long-term care policy will include in-home care.

7.

1 point

Following the Five Foundations will help you to, one day, become self-insured.

True

False

8.

1 point

After high school, you should have the following types of insurance: auto, renterʹs, health and long-term care insurance.

True

False

9.

1 point

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

auto insurance

long term care insurance

cancer and hospital indemnity insurance

disability insurance

10.

1 point

Which of the following statements about life insurance is true?

Term life insurance should be avoided because the policy will expire and it has no savings plan built into it.

You will always need life insurance.

There is no difference between term and cash value life insurance.

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

11.

1 point

Your auto insurance policy is labeled as 100/300/100. What does the first 100 stand for?

Bodily Injury Per Person

Property Damage

Bolidy Injury Per Accident

12.

1 point

Which of the following is not true about a will?

You only need a will if you have a large estate.

A will enables you to nominate the persons who will handle your estate or serve as guardians to your children, and it allows you to determine who will receive all the property you have accumulated over your lifetime.

Your will can be an expression of your personal values.

A well-drafted will can allow your family to minimize death taxes and other costs that may drain your estate of assets.

13.

1 point

Prepaid burial policies are a good idea.

True

False

14.

1 point

A person becomes self-insured when:

Everyone should have term life insurance regardless of age or financial well-being

They own their own business

They have no debt

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

15.

1 point

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

insured

beneficiary

next of kin

lucky

16.

1 point

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

Increase your deductible.

See if a Health Savings Account would make sense for your situation.

If you are young and healthy, you do not need health insurance.

Increase your stop-loss or your maximum out-of-pocket expense.

17.

1 point

Good identity theft protection includes restoration services.

True

False

18.

1 point

The purpose of insurance is to

develop a savings plan

provide and investment opportunity

Transfer Financial risk

all of the above

19.

1 point

Disability insurance offered through your employer is usually the most expensive coverage option.

True

False

20.

1 point

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

deductible

liability

annuity

premium

21.

1 point

You should not buy identity theft protection that only provides credit report monitoring.

True

False

22.

1 point

Renterʹs insurance is not necessary if you donʹt have a lot of expensive things.

True

False

23.

1 point

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

premium

out-of-pocket expense

fee

prize

24.

1 point

Comprehensive coverage takes care of damage to your car that is not caused by a collision.

True

False

25.

1 point

Which of the following statements about disability insurance is false?

Your coverage should be for 65% of your income.

After college, short-term disability should be covered by your emergency fund of three to six monthsʹ worth of expenses, staying out of debt, and having a money plan.

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

A longer elimination period will lower your premium cost.

26.

1 point

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?

identity gets stolen

lose your cell phone

car accident

medical emergency

27.

1 point

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

identity theft insurance

auto insurance

health insurance

life insurance

28.

1 point

Duplicate coverage, or any extra insurance on top of your existing insurance, is not necessary.

True

False

29.

1 point

Any insurance with cash value or that combines insurance with investments is a bad idea.

True

False

30.

0 points

What insurance covers your salary if you were to get cancer and could not work for 6 months

disability

long-term care

renters

disability

31.

1 point

Which of the following is true?

Pet insurance is a good idea since pet emergencies can be very expensive.

Any kind of duplicate insurance coverage is a bad idea.

You can never be too safe-there is no bad insurance.

Mortgage life insurance is necessary if you are a homeowner.

32.

1 point

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

Get good grades and take a driver education class

increase your deductible

Drop your auto insurance altogether

shop around