QUESTION 1

Renter's insurance is relatively inexpensive & could be useful.

True

False

10 points

QUESTION 2

Liability insurance insures against damage you do to another party.

True

False

10 points

QUESTION 3

In the United States, pre-existing conditions such as diabetes or cancer do not affect your insurance rates.

True

False

10 points

QUESTION 4

The actual cash value is almost always less than the replacement cost, because items generally lose value (depreciate) over time.

True

False

10 points

QUESTION 5

Suppose you sustain an injury that costs $50,000. Your deductible is $100, your coinsurance is 10%, and your annual maximum out-of-pocket expense is $10,000. You have not had any out-of-pocket expenses yet this year. You would pay $5,090 for the injury.

True

False

10 points

QUESTION 6

Typically, the higher the deductible, the higher the premium.

True

False

10 points

QUESTION 7

Almost everyone needs permanent life insurance.

True

False

10 points

QUESTION 8

If you are a low-income earner in the United States, you can receive assistance in filing your taxes from the Volunteer Income Tax Assistance program.

True

False

10 points

QUESTION 9

In the United States, each state has its own auto insurance regulations.

True

False

10 points

QUESTION 10

A deductible is the monthly (or semi-monthly) amount of money you pay for insurance.

True

False