Financial Literacy Test 5 Review

1. The likelihood of loss or damage, which insurance helps manage
5. ______ Life insurance: covers your entire lifetime and includes a cash value component
6. _______ coverage: Insurance that covers damage from theft, fire, or natural disasters
7. The amount you pay to receive insurance coverage
9. _______ coverage: Insurance that covers damage to your car when you hit another vehicle or object
12. ________ Insurance: replaces a portion of lost income if you become disabled for an extended period; can last until retirement
14. The legal responsibility for causing injury or property damage
15. The amount you must pay out-of-pocket before insurance coverage begins
17. The percentage of medical costs you pay for a covered health service after meeting your deductible
18. Premiums and deductibles are _______ related
19. A health insurance plan requiring members to see in-network providers and get referrals for specialists
20. A professional who calculates risk and determines insurance rates
21. Insurance that insurance companies purchase to reduce their own risk

2. ________ Insurance: replaces a portion of lost income if you become disabled; typically lasts 3-6 months
3. _______ coverage: The type of auto insurance legally required in almost every state
4. _____ Life insurance: provides coverage for a set number of years
7. A contract between an individual and an insurance company outlining coverage details
8. A request to an insurance company for payment based on a covered event
10. A health insurance plan that allows more flexibility to see doctors outside the network
11. The most you will pay for covered medical expenses in a year
13. ________ Insurance that protects personal property and liability in a rented home or apartment
16. The maximum amount an insurance company will pay for a covered claim
18. A financial product that transfers risk from an individual to an insurance company