Personal Finance May

tgermani's version from 2015-05-11 22:37

Section 1

Question Answer
This type of Homeowner’s Policy only covers the 11 basic perils? HO1
Which of the following is NOT considered an “Act of God”? -Hurricane -Flood -Arson -Volcanic -Eruption -Windstormarson
This type of Homeowner’s Policy only covers all perils except those listed in the policy? HO3
Which of the following is NOT one of the 11 HO1 basic perils? -Theft -Lightning -Arson -Vandalism -EarthquakeEarthquake
The amount of money the beneficiary will receive upon the death of the insured.Face Value
John takes out and manages a life insurance policy on his wife, Mary. John is the___________.policy holder
Which Insurance? A volcano destroys your house and you need to rebuild it. homeowner's policy
John gets all the insurance money if his wife, Mary, dies. John is the___________.Beneficiary
The amount of money you receive if you cancel a whole life, universal, or variable universal life insurance policy before the insured dies. cash surrender value
Is life insurance which provides death benefit coverage for specified time period (e.g. 5-year time period). term insurance
Is the cost or amount you pay for the total amount of insurance coverage you purchase. premium
Which Insurance? Your neighbor’s daughter breaks her leg while playing on a trampoline in your backyard. She needs X-Rays and a cast.Homeowner's policy

Section 2

Question Answer
John pays a portion of the premiums for their health insurance. His plan is a ______ plan. contributory
You have a sports memorabilia collection. What type of policy will cover this in the event of fire or theft?Floater
This is a type of life insurance where premiums are fixed; face value amounts and cash surrender values are predetermined and grow throughout the term of the policy. whole life insurance
This refers to the terms or conditions of your coverage.policy provisions
This is a very comprehensive type of health insurance in which you select your own doctors, but it does not cover wellness or preventive care. Traditional healthcare plan
This is the amount of a loss you pay out-of-pocket before the insurance company pays their portion of the cost. deductible
Which Insurance? You hit someone else’s car which results in injuries to someone in the OTHER car. Bodily Injury Liability Insurance
Is government sponsored health coverage for those who are 65 and older. Medicare
Person whose life is insured in the event of their death.The insured
Which Insurance? You anticipate that your father will need to go to a nursing home and want coverage to pay for that potential expense.Long term care coverage
Is government sponsored health care coverage for those with low-income. medicaid
This is a type of health insurance which limits your choices of doctors, but generally covers well and preventative care. managed healthcare plan

Section 3

Question Answer
Which Insurance? You break your arm while at WORK when you fall off your chair.Workman’s Compensation Insurance
Which Insurance? You suffer a stroke and are out of work for six months and need the income you will lose.Disability Income Insurance
This is a specific small dollar amount you pay each time you have certain insured expenses, such as a doctor visit or prescription filled. Co-pay
Added coverage that goes beyond normal comprehensive personal liability limits of $1 million. Personal Umbrella Liability Insurance
Which Insurance? Someone breaks into your apartment and steals your laptop, television, and $300 in cash.renter's insurance
Which Insurance? Someone stole your new Fiat and you need to replace it.Comprehensive Insurance
Which Insurance? Your new Fiat is totaled by a hit and run driver.uninsured motorist insurance
Which Insurance? While driving you become distracted and hit a guard rail and need to repair your own car.collision insurance
Which Insurance? Your daughter breaks her leg while playing on a trampoline in your own backyard. You must pay the hospital bill to get X-Rays and a insurance
Which would have a lower annual premium for someone who was 30 (assuming they got the policy when they were 25): Term Life or Whole Life Insurance?term life insurance
Which would have a lower annual premium for someone who was 60 (assuming they got the policy when they were 25): Term Life or Whole Life Insurance?whole life insurance
Which Insurance? You cause an accident and the passenger in your car breaks his leg and needs medical attentionpersonal injury insurance
Which Insurance? You hit someone else’s car and cause $3,000 in damage. You need to pay for the repairs to that other damage liablity