Study Guide for Exam 2
Insurance Basics: Class discussions
List four ways to deal with the risks we face in life.
What are the three types of risk insurance covers?
What is the difference between an HMO and a PPO?
Why don't people in first-world countries purchase insurance?
Know insurance policies
What steps should you take if involved in a car accident?
What is covered by homeowners insurance?
What should you do if your insured home is the target of theft or disaster?
If you have questions about what your coverage is (home owners), what questions
should you ask?
Protecting Your Greatest Asset--You
What is the difference between short term and long term disability insurance
Why should you consider disability insurance? Why would you not consider
it?
Nine Ways to Lower...
When doing comparison shopping, where should you check?
What should you do to check the personal service of insurance companies?
On which coverage should you ask for higher deductibles to substantially lower
your premium costs?
It is not cost effective to purchase collision and/or comprehensive coverage on
automobiles worth less than __________.
What types of cars have higher insurance costs?
What communities tend to have lower automobile insurance costs?
List discounts that insurance companies may offer on automobile insurance.
Controlling Premium Costs
List three things that influence the cost of your automobile insurance.
Which coverages are required by state laws?
What is a deductible?
What group(s) of drivers pay more for their automobile insurance coverage? Why?
How can young drivers lower automobile insurance premiums?
How are the comprehensive and collision premium portions of your automobile
insurance determined?
Name the two most dangerous types of vehicles?
How much higher is the death rate for single rollovers for small utility
vehicles?
List four things you can do to keep your insurance rates in line and to protect
yourself and your family.
Private passenger auto comparison tables, Homeowners insurance comparison
tables
Does the Insurance Department set automobile insurance rates?
Is price the only factor to consider when choosing an insurance company?
Why is there such a big difference in premium between a brick and a frame
home?
How much does earthquake insurance cost in
Understanding Auto insurance
What type of coverage is most important to your financial security?
For the following coverage know what is covered and under conditions
those coverages would be in effect:
uninsured motorist coverage
comprehensive
collision
uninsured motorist collision coverage
car rental insurance
Cover your castle
Where should you start in protecting your home?
What is the second thing to do in protecting your home?
What does a homeowners policy generally cover?
What should you do when you are ready to shop for the best value?
Twelve ways to save money on your homeowners insurance
Is insurance a competitive business?
The insurer you select should offer...
What is the benefit of getting home and auto policies from the same insurer?
What can you save by increasing your home security?
How often should you compare your policy limits and your possessions?
Know the 12 ways to lower your homeowners insurance.
What is an "attractive nuisance?" Be able to give examples.
Am I covered
Know the answers to the questions in the article.
Renters Insurance
Why should renters buy insurance?
What is the difference between Actual Cash Value and Replacement Cost Coverage?
How are costs determined for a renters policy?
How can you save money on a renters policy?
The basics of renter's insurance
Whose insurance covers damage to the dwelling?
What perils are covered? What two are NOT on the list?
Explain the difference between "actual cash value" and
"replacement cost."
What are some additional benefits of renters insurance?
How can you keep your premiums low?
Homeowners coverage quiz
Know the answers to the quiz questions.
What you should know about buying life insurance
What is the main purpose of life insurance?
Why do you need life insurance? How much?
What are the advantages and disadvantages of term life insurance?
What are the advantages and disadvantages of "permanent" or whole
life insurance? (Note: "Permanent" life insurance is also referred to
as "cash value" life insurance.)
How should you choose a company and agent?
Subject: Insurance - life
Why does the author recommend that you do NOT buy flight or mortgage
insurance?
Many employees are offered free insurance through work; why shouldn't you
purchase additional life insurance tied to your employment?
How much life insurance should you buy? (The "rule of thumb.")
Where can you find information on insurance companies (how they compare to
other insurers)?
Why is it important to buy a policy that is "guaranteed renewable?"
Basic types of life insurance
What are the differences between term and cash-value life insurance?
What are the advantages and disadvantages of each type (term and cash-value) of
insurance?
How much commission does a life insurance agent typically earn for selling a
policy?
What percent of consumers cancel their cash-value life insurance policy during
the first two years of the policy?
Please note: These questions are just guides to help you recognize relevant information in the readings. It would be in your best interest to also know the answers to study questions associated with any of the above articles. Tests will cover the articles listed above and in the course schedule AND class discussions (content modules for the on-line classes).