Insurance Test- Chp. 9 Review Sheet
1. Should you use insurance as an investment?
No
2. Should you get current cost or replacement cost on homeowner's or renter's insurance?
Replacement cost
3. Which type of life insurance has NO savings plan build into it: Term or Whole Life?
Term
4. What is the purpose of insurance?
To transfer risk
5. What is a deductible?
The amount you pay before your insurance will pay your claim
6. What can you do to decrease the cost of insurance?
Increase your deductible, shop around for best rates, get discounts like good student...
7. Will a speeding ticket make your car insurance rates go up or down?
Up
8. What type of car insurance is required by Colorado state law?
Liability
9. Who needs to have life insurance?
People with dependents
10. Do you need renter's insurance if you live in a dorm?
Yes
11. Which insurance covers the contents of your house or apartment?
Homeowner's or Renter's
12. What's the difference between these two types of car insurance: Collision and Comprehension?
Collision - covers damages from accidents (car wrecks)
Comprehension - covers damages NOT due to an accident
13. What type of life insurance does Dave Ramsey recommend? Term or Whole Life
Term
14. Why should someone buy life insurance?
To provide income for their dependents (beneficiaries)
15. What do you fill out if you need to get money from your insurance company after an accident?
Claim
16. What is the name of the amount you pay for insurance coverage?
Premium
17. What does uninsured motorist pay for?
Medical expenses and other losses if the driver who is at fault doesn't have insurance.
18. Did you study for this test????
I hope so! :)
1. Should you use insurance as an investment?
No
2. Should you get current cost or replacement cost on homeowner's or renter's insurance?
Replacement cost
3. Which type of life insurance has NO savings plan build into it: Term or Whole Life?
Term
4. What is the purpose of insurance?
To transfer risk
5. What is a deductible?
The amount you pay before your insurance will pay your claim
6. What can you do to decrease the cost of insurance?
Increase your deductible, shop around for best rates, get discounts like good student...
7. Will a speeding ticket make your car insurance rates go up or down?
Up
8. What type of car insurance is required by Colorado state law?
Liability
9. Who needs to have life insurance?
People with dependents
10. Do you need renter's insurance if you live in a dorm?
Yes
11. Which insurance covers the contents of your house or apartment?
Homeowner's or Renter's
12. What's the difference between these two types of car insurance: Collision and Comprehension?
Collision - covers damages from accidents (car wrecks)
Comprehension - covers damages NOT due to an accident
13. What type of life insurance does Dave Ramsey recommend? Term or Whole Life
Term
14. Why should someone buy life insurance?
To provide income for their dependents (beneficiaries)
15. What do you fill out if you need to get money from your insurance company after an accident?
Claim
16. What is the name of the amount you pay for insurance coverage?
Premium
17. What does uninsured motorist pay for?
Medical expenses and other losses if the driver who is at fault doesn't have insurance.
18. Did you study for this test????
I hope so! :)