Types Of Insurance - Quiz 2

The correct answer is Automobile because the question is asking about the situation where you accidentally strike the guardrail while trying to avoid hitting a squirrel. This scenario is related to driving or operating a vehicle, specifically an automobile. The other options (Life, Health, None of the above) are not relevant to the given situation.

Automobile insurance is indeed an arrangement between an individual and an insurance company to provide protection against risks associated with automobile accidents. It is a contract in which the individual pays a premium to the insurer, who then agrees to compensate for any damages or losses incurred due to accidents. This insurance coverage helps individuals financially in case of vehicle damage, medical expenses, or liability claims arising from accidents. Therefore, the statement "Automobile Insurance is an arrangement between an individual and insurer to protect the individual against risk from automobile accidents" is true.

The explanation for the given correct answer is that a deductible is indeed the portion of an insurance coverage that the insured individual is responsible for paying. This amount is typically determined by the insurance company and is paid by the insured before the insurance company starts covering the remaining costs. The deductible is often set to determine the monthly premium amount, meaning that a higher deductible may result in a lower premium and vice versa. Therefore, the statement "The deductible is the part of the insurance coverage that the insured will pay" is true.

Health insurance is the correct answer because it covers medical expenses related to injuries or illnesses. Breaking an ankle while roller-blading is a medical emergency that requires immediate attention, including a cast to immobilize the ankle and promote healing. Health insurance would typically cover the cost of the cast, as well as any other necessary medical treatments or procedures associated with the injury. Disability insurance, life insurance, and automobile insurance do not typically provide coverage for medical expenses related to injuries like a broken ankle.

Disability insurance is the correct answer because it provides coverage for individuals who are unable to work due to an injury or illness. In this scenario, the person is injured in an automobile accident and is unable to work for 4 months, making disability insurance the appropriate type of insurance to provide financial protection during this period of disability.

If you hit and injure a pedestrian in a crosswalk, your automobile insurance would cover the damages and medical expenses related to the accident. Automobile insurance typically provides coverage for accidents involving pedestrians, ensuring that the injured party receives the necessary compensation for their injuries and any resulting medical treatment.

Homeowners insurance typically covers damage or loss to your property caused by certain events, such as fire, theft, or vandalism. However, in this scenario, the question states that your computer is stolen, which implies that you are a renter and not a homeowner. Therefore, the correct answer is false, as renters would typically need to purchase renter's insurance to cover their belongings in the event of theft or damage.