Credit and Insurance Terminology Quiz

The cost of borrowing, including interest and fees, expressed as a percentage.

Stock Insurance is not a recognized form of insurance coverage.

A numerical representation of a person's creditworthiness based on credit history and other financial behaviors.

The cost paid by the policyholder to maintain insurance coverage.

Assessment of risk and determination of coverage eligibility.

Term life has a fixed duration, while whole life provides lifelong coverage with a cash value component.

A predetermined amount paid by the insured before the insurance company covers expenses.

Whole life insurance accumulates a cash value that can be borrowed against or withdrawn over time.

A fixed amount paid by the insured for covered services, typically in health insurance.

Failing to meet the agreed-upon payment terms for a loan or credit card.

Instances or circumstances explicitly not covered by an insurance policy.

Gradual repayment of a loan through scheduled, periodic payments.

It measures the amount of credit being used relative to the total available credit.

Assets pledged to a lender as security for a loan.

When individuals with a higher risk of making a claim are more likely to purchase insurance.

Out-of-pocket amount paid by the insured before health insurance coverage starts.

Period during which a credit card is active and can be used.