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Final Exam Personal Finance
Chaper 25, 26, 27
Terms in this set (61)
Insurance is a plan for sharing the risk of financial loss resulting from an accident or illness.
Coordination of Benefits
When benefits from more than one health plan are limited to 100 percent of medical costs
Insurance that provides protection from financial loss that might otherwise occur when a person dies
Insurance cannot be cancelled during a specific time period.
Term Insurance gives the policyholder the right to renew each year, without having to pass a physical exam
Small Insurance policy that modifies coverage of the main policy
Preferred Provider Organization (PPO)
A group of health care providers who band together to provide health services for set fees
Health Maintenance Organization (HMO)
A group of health insurance plan offering prepaid medical care to its members
The most common type of health insurance
A policy, premiums are paid throughout the life of the insured
Basic Health Insurance
The three types of Insurance (Medical, Hospital, and Surgical)
To protect the likelihood of death occurring, insurance companies use ___ tables
Riders gives a policyholder the right to buy a new policy or additional coverage without evidence of good health.
Waver of Premium
Rider allows you to stop paying premiums and keep your coverage in force if you become disabled
Life Insurance is protection for a specific period of time.
Is an amount available to borrow or at cancellation when you own a permanent life insurance policy
Permanent Life Universal
A type of permanent insurance that has a premium and a death benefit that are not fixed.
Most health insurance is issued in the form of group health insurance
Vision Insurance usually pays for sunglasses and contact lenses
Major medical coverage protects a person from large and catastrophic expenses resulting from injury and illness.
Co-Insurance means that the insured must pay the first 80 percent of all the bills
Most dental plans pay a maximum amount each year such as $1,500 per person per year
Workers Comp. is limited to people killed during the course of employment
A traditional fee-for-service plan is less expensive than a managed care plan.
Health maintenance organization encourage preventive care, such as physical exams
Medicare insurance is provided for retired people through the Social Security Administration
Disability insurance is the most commonly purchased type of insurance
Which of these is supplementary private policy? A) Medicare B) Medicaid C) Medicap D) Minimed
The ___ clause prevents an insurance company from cancelling a policy within a specified time. A) rider B) incontestability C) suicide D) insurability
Which of these types of insurance is "permanent"? A) level term B) decreasing term C) credit life D) universal life
Which of these types of insurance is "temporary"? A) level term B) straight life C) limited life pay D) universal life
Which one of these insurance plans has a premium and a death benefit that are not fixed? A) level term B) straight life C) universal life D) variable life
Which of these insurance plans have an investment feature? A) level term B) straight life C) universal life D) variable life
Which of these would not be considered a part of basic health insurance? A) medical B) hospital C) dental D) surgical
The insured paying a set amount, which the rest covered by major medical, is an example of A) co-insurance B) stop-loss provision C) double indemnity D) medicap coverage
What plan is available to people who qualify under state welfare and public assistance programs? A) medicaid B) Medigap C) medicare D) self-insurance
The waiting period for disability benefits may be ___ days. A) 5 to 10 B) 30 to 60 C) 30 to 90 D) 30 to 180
Insurance protects you from loss in the event your home is damaged or destroyed.
Is the legal responsibility for the financial cost of another person's losses or injuries
A(n) ___ policy protects personal possessions kept on someone else's property.
A(n) ___ is a dangerous place, condition, or object that is especially attractive to children.
With ___ coverage, your own car other than being hit or upset is covered by insurance.
With ___ coverage, damage to your car is repaired or replaced if you are at fault in the accident.
A(n) ___ is a written amendment to an insurance company.
Insurance ___ determine the value of what was destroyed or damaged by a fire or other event causing law.
All types of insurance purchased in one single policy is called?
Medical, hospital, and funeral cost of the insured and his or her family and passengers is called?
Personal Injury Protection (PIP)
In the event that you are injured in an accident with a motorist with insurance, your ___ coverage pays your cost
Uninsured/under-insured motorist coverage
A(n) ___ clause requires the policyholder to carry insurance equal to or exceeding 80 percent of the replacement cost of the building.
The ___ protects specific items of personal property.
Personal Property Floater
Serious Traffic offenses, called ___, will result in increased insurance premiums.
___ laws provide for the repair or replacement of your car by your own insurance company, regardless of who was at fault in an accident.
No fault insurance
An insurance category based on age, sex, marital status, driving record, and driving habits is called?
A person unable to obtain insurance goes into a(n) ___ that is available in every state.
Assigned risk pool
A(n) ___ insurance policy supplements basic personal liability coverage.
Umbrella liability insurance.
Standard Automobile insurance policies include coverage of theft.
Doing something careless can result in lawsuit against you for negligence.
Landlords can insure the property of their tenants as part of their liability policy
Common types of homeowner's policies include theft and vandalism coverage.
Insurance Investigators look for evidence of destroyed or damaged property.
An endorsement does not cost an additional premium.
THIS SET IS OFTEN IN FOLDERS WITH...
ATTRACTIVE NUISANCE DOCTRINE
lewis Finance 101 ku fall 2014
Chapter 11 Study
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