1) What is the purpose of insurance?
a) To protect against financial loss
b) To make a profit for the insurance company
c) To provide discounts on goods and services
d) To increase personal wealth
Answer: a) To protect against financial loss
2) Which of the following is not a type of insurance?
a) Health insurance
b) Home insurance
c) Car insurance
d) Travel insurance
Answer: d) Travel insurance
3) What is a deductible in insurance?
a) The amount of money you pay out-of-pocket before the insurance coverage kicks in
b) The maximum amount of money the insurance company will pay for a claim
c) The premium amount you pay each month for insurance coverage
d) The total value of your assets that need to be insured
Answer: a) The amount of money you pay out-of-pocket before the insurance coverage kicks in
4) Which type of insurance covers damage to your vehicle caused by an accident?
a) Health insurance
b) Home insurance
c) Car insurance
d) Life insurance
Answer: c) Car insurance
5) What is the purpose of life insurance?
a) To protect against financial loss due to death
b) To cover medical expenses
c) To provide retirement income
d) To protect against theft or damage to property
Answer: a) To protect against financial loss due to death
6) Which of the following is not a factor that determines the cost of insurance?
a) Age
b) Gender
c) Occupation
d) Hair color
Answer: d) Hair color
7) What does liability insurance cover?
a) Damage to your own property
b) Medical expenses for injuries caused to others
c) Theft or damage to personal belongings
d) Loss of income due to disability
Answer: b) Medical expenses for injuries caused to others
8) What is the purpose of renters insurance?
a) To cover medical expenses for injuries in your rented property
b) To protect against theft or damage to personal belongings in a rented property
c) To provide discounts on rent payments
d) To cover damages to the rented property
Answer: b) To protect against theft or damage to personal belongings in a rented property
9) What is the purpose of disability insurance?
a) To cover medical expenses for disabilities
b) To provide income replacement in case of disability preventing work
c) To cover damages to disability equipment
d) To protect against theft or damage to personal belongings
Answer: b) To provide income replacement in case of disability preventing work
10) What is a premium in insurance?
a) The maximum amount of money the insurance company will pay for a claim
b) The amount of money you pay out-of-pocket before the insurance coverage kicks in
c) The total value of your assets that need to be insured
d) The amount of money you pay each month for insurance coverage
Answer: d) The amount of money you pay each month for insurance coverage
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