QUESTION 1

1. In the United States, pre-existing conditions such as diabetes or cancer:

   		lower your insurance rates.
   		do not affect your insurance rates.
   		can disqualify you from receiving health insurance.
   		raise your insurance rates.

1 points

QUESTION 2

1. Which of the following statements is true?

   		Insurance companies tend to be delighted when you file a claim, because it justifies their existences.
   		None of the other statements is true.
   		Almost everyone needs permanent life insurance.
   		If you are in an accident that you believe you caused, you should declare guilt immediately.

1 points

QUESTION 3

1. The ______ the deductible, the ______ the premium.

   		higher; lower
   		The deductible has no relationship to the premium.
   		higher; higher
   		lower; lower

1 points

QUESTION 4

1. Renter's insurance:

   		is relatively inexpensive, but unnecessary.
   		is relatively inexpensive & could be useful.
   		is relatively expensive, but unnecessary.
   		is relatively expensive & could be useful.

1 points

QUESTION 5

1. The _____ is almost always more than the _____, because items generally _____.

   		actual cash value; replacement cost; depreciate in value.
   		actual cash value; replacement cost; appreciate in value.
   		replacement cost; actual cash value; depreciate in value.
   		replacement cost; actual cash value; appreciate in value.

1 points

QUESTION 6

1. Liability insurance insures against damage you do to:

   		None of these statements describes liability insurance.
   		another party and your own property.
   		your own property.
   		another party.

1 points

QUESTION 7

1. Suppose you sustain an injury that costs $200,000. Your deductible is $200, your copay is 10%, and your annual maximum out-of-pocket expense is $5,000. You have not had any out-of-pocket expenses yet this year. How much do you pay for the injury?

   		$20,180
   		$10,090
   		$5,000
   		$10,000