Insurance NECO past questions and answers

Insurance NECO past questions and answers

What does "umbrella insurance" typically cover?

A) Only auto-related damages

B) Coverage that extends beyond the limits of other policies (Correct)

C) Specific weather-related damages

D) Life insurance for high-net-worth individuals

Which insurance might cover a canceled flight due to a hurricane warning?

A) Health insurance

B) Travel insurance (Correct)

C) Renter's insurance

D) Disability insurance

What does "waiting period" mean in disability insurance?

A) Time before policy renewal

B) The time it takes for the policy to become active after purchase

C) The period an insured must wait before receiving benefits (Correct)

D) The grace period for premium payments

Which insurance typically covers damage caused by fallen tree limbs on your property?

A) Homeowner's insurance (Correct)

B) Renter's insurance

C) Flood insurance

D) Earthquake insurance

What does "whole life insurance" offer that term life insurance does not?

A) Cash value accumulation (Correct)

B) Lower premiums

C) Shorter coverage period

D) Higher death benefits

Which insurance might cover medical costs if you injure someone while skiing?

A) Health insurance

B) Travel insurance

C) Personal liability insurance (Correct)

D) Renter's insurance

What does "premium refund" mean in insurance terms?

A) The insurer's profit from premiums

B) Money returned to the policyholder if the policy is canceled early (Correct)

C) An additional premium charged for late payments

D) The deductible amount

Which insurance might cover damage to a rental car while on vacation?

A) Health insurance

B) Travel insurance

C) Rental car insurance (Correct)

D) Personal liability insurance

What does "guaranteed renewable" mean in health insurance?

A) The policy cannot be canceled by the insurer (Correct)

B) The premium amount remains constant

C) The policy's benefits increase annually

D) The insured is guaranteed coverage for any condition

Which insurance might cover loss of luggage during a trip?

A) Homeowner's insurance

B) Renter's insurance

C) Travel insurance (Correct)

D) Disability insurance

What does "pre-authorization" mean in health insurance?

A) The insured person's consent for treatment

B) Confirmation from the insurer that a procedure is covered (Correct)

C) The payment made before services are rendered

D) The deductible amount

Which insurance might cover damage to your bicycle while it's parked outside your apartment?

A) Homeowner's insurance

B) Renter's insurance (Correct)

C) Bicycle insurance

D) Personal liability insurance

What does "deductible carryover" mean in an insurance policy?

A) The deductible amount increases annually

B) Unused deductible amount from one policy period carries over to the next (Correct)

C) The deductible decreases over time

D) The deductible is waived for specific claims

Which insurance typically covers damage caused by a power outage to appliances in your home?

A) Homeowner's insurance (Correct)

B) Renter's insurance

C) Flood insurance

D) Earthquake insurance

What does "premium hike" mean in insurance terms?

A) The premium decreases

B) The premium remains constant

C) An increase in the premium amount (Correct)

D) The policy's expiration

Which insurance might cover the cost of a pet's medical treatment?

A) Health insurance

B) Pet insurance (Correct)

C) Renter's insurance

D) Disability insurance

What does "indemnity" mean in an insurance context?

A) A type of coverage for high-value assets

B) Compensation paid for a loss or damage (Correct)

C) The policy's maximum limit

D) The premium payment schedule

Which insurance might cover expenses if your luggage is delayed during travel?

A) Health insurance

B) Travel insurance (Correct)

C) Renter's insurance

D) Disability insurance

What does "loss assessment coverage" refer to in homeowner's insurance?

A) Coverage for damage to personal belongings

B) Coverage for damage caused by natural disasters

C) Coverage for special assessments made by a homeowners association (Correct)

D) The policy's deductible amount

Which insurance might cover medical costs if you accidentally injure someone playing a sport?

A) Health insurance

B) Personal liability insurance (Correct)

C) Renter's insurance

D) Disability insurance