Economics 1. The cost of insurance can vary wildly between insurance companies.

True.

False.

2. What is an insurance "deductible"?

A. What you pay yearly for car insurance if you don't have accidents.

B. The amount deducted from your payment every month.

C. The amount the insurance company gives you for a new car.

D. The amount of damages you must pay in the case of an accident.

3. The purpose of life insurance is to protect your car in case of an accident.

True.

False.

4. Your parents' income will be used to determine what your insurance will cost.

True.

False.

5. Which actions can an insurance company take if you receive a DUI?

A. Raise your insurance costs or cancel your insurance.

B. If you are insured on your parents' insurance policy, they could raise the rate on your parents' car insurance and even their home insurance.

C. Both A and B.

D. None of the above.

6. Comprehensive insurance is when your insurance company usually .

A. Covers just collisions with a lot of cars at once.

B. Includes health insurance for any injuries.

C. Covers collision and physical damage.

D. Can't help you if you are driving in an area that has a high rate of accidents and a lot of crime.

7. Life insurance can usually help you in which of these cases?

A. If you die prematurely.

B. If you die late in your life and your policy is still current.

C. If you die in an accident.

D. All of the above.

8. In which cases does property insurance give you coverage?

A. Fire.

B. Theft from your school locker.

C. If you are injured at soccer practice at the town fields.

D. None of the above.

9. Health insurance is designed to cover:

A. Every single medical bill.

B. Just the doctors' salaries.

C. Some or all of your expenses related to accidents and some health issues.

D. Your children's college tuition.

10. It is smart to always compare insurance costs between different companies. Insurance agents are usually good people. But a smart customer knows that the insurance agents' job is normally to sell, not necessarily tell you if their insurance coverage costs more than other insurance coverage.

True.

False.

11. What are some of the factors that would influence your insurance costs?

A. Your gender.

B. Where you live.

C. The type of car you drive.

D. All of the above.

12. If I make a lot of claims on my insurance, my insurance cost will probably go down.

True.

False.

13. What are some obligations you must fulfill for an insurance policy to be in effect?

A. You need to make sure you make your insurance payments on time.

B. You need to provide your resume.

C. You must be accurate and truthful in giving the insurance company any information the company uses to determine their coverage and you premium.

D. Both A and C.

14. A (an) is a document that is based on the amount of risk taken on a specific outcome.

A. Insurance company.

B. Insurance agent.

C. Insurance policy.

D. Broker.

15. What is collision insurance?

A. Collision insurance will cover all damages if you have a head-on accident with another vehicle.

B. This covers physical damage to a vehicle. Collision insurance usually has a "deductible" which means the company will not pay for 100% of the damages.

C. Collision insurance covers the hospital bills.

D. Collision insurance is only for customers who get into a lot of accidents.