EVERFI STUDY QUESTIONS AND ANSWERS
Insurance policy terms - Answers - Coverage premium claim deductible co pay
Coverage - Answers - Refers to range of protection you are eligible to receive from your
insurance plan
Premium - Answers - Amount you pay the insurance company for coverage. Premium
payments may be due all at once or divided and paid on a regular basis usually monthly
Claim - Answers - Request you make to ur insurance company for payment based on
the terms of your insurance
Deductible - Answers - Amount you are personally required to pay out of pocket toward
each claim before your insurance kicks in
Co pay - Answers - A fixed fee that you pay for covered medical services
Which of the following best describes how auto insurance companies manage risk? -
Answers - The insurance company balances low risk drivers with high risk drivers. The
insurance company charges higher rates to higher risk drivers
Types of taxes - Answers - Federal income tax state income tax sales tax property tax
capital gains tax
Federal income tax - Answers - Based on how much money you earn each year the
federal gov charges income tax for everyone who earns money
State income tax - Answers - Based on how much you earn annually the percentage of
your income tax that is taxed varies between states some states don't charge a state
income tax
Sales tax - Answers - Charged on items you purchase. Most states charge sales tax
every time you buy something. The sales tax percentage varies across states
Property tax - Answers - Based on the value of owned property like land buildings or
houses the property tax rate depends on your state loan cap jurisdiction and the value
of your property
Capital gains tax - Answers - Charged on any profit you make from selling something at
a higher price than you bought it capital gains are usually from the sale of stocks bonds
or property
Which of the following taxes are charged on items at the time of purchase - Answers -
Sales tax
Insurance policy terms - Answers - Coverage premium claim deductible co pay
Coverage - Answers - Refers to range of protection you are eligible to receive from your
insurance plan
Premium - Answers - Amount you pay the insurance company for coverage. Premium
payments may be due all at once or divided and paid on a regular basis usually monthly
Claim - Answers - Request you make to ur insurance company for payment based on
the terms of your insurance
Deductible - Answers - Amount you are personally required to pay out of pocket toward
each claim before your insurance kicks in
Co pay - Answers - A fixed fee that you pay for covered medical services
Which of the following best describes how auto insurance companies manage risk? -
Answers - The insurance company balances low risk drivers with high risk drivers. The
insurance company charges higher rates to higher risk drivers
Types of taxes - Answers - Federal income tax state income tax sales tax property tax
capital gains tax
Federal income tax - Answers - Based on how much money you earn each year the
federal gov charges income tax for everyone who earns money
State income tax - Answers - Based on how much you earn annually the percentage of
your income tax that is taxed varies between states some states don't charge a state
income tax
Sales tax - Answers - Charged on items you purchase. Most states charge sales tax
every time you buy something. The sales tax percentage varies across states
Property tax - Answers - Based on the value of owned property like land buildings or
houses the property tax rate depends on your state loan cap jurisdiction and the value
of your property
Capital gains tax - Answers - Charged on any profit you make from selling something at
a higher price than you bought it capital gains are usually from the sale of stocks bonds
or property
Which of the following taxes are charged on items at the time of purchase - Answers -
Sales tax
