#1
What does a deductible represent in insurance?
The total coverage amount
The amount the insured must pay out of pocket before the insurance company pays
The premium paid annually
The amount the insurance company pays for a claim
#2
Which type of insurance typically covers damage to your own vehicle in an accident?
Health insurance
Life insurance
Home insurance
Auto insurance
#3
What does liability insurance typically cover?
Damage to your own property
Damage to another person's property
Medical expenses for yourself
None of the above
#4
What is 'term life insurance'?
Life insurance that covers a specific term or period
Life insurance that covers a lifetime
Life insurance with no premium
Life insurance without any benefits
#5
What does 'actual cash value' mean in insurance?
The total amount of coverage provided by the insurance company
The current value of an insured item, considering depreciation
The maximum amount the insurance company will pay for a claim
The amount the insured must pay before insurance coverage begins
#6
What is 'co-pay' in health insurance?
The maximum out-of-pocket amount the insured must pay
The percentage of costs the insured must pay after meeting the deductible
A fixed amount the insured pays for a healthcare service
The amount the insured must pay before insurance coverage begins
#7
What is 'umbrella insurance'?
Insurance for umbrellas
Insurance that covers multiple properties
Insurance that provides additional liability coverage beyond the limits of other policies
Insurance that covers damage caused by umbrellas
#8
What is a 'rider' in insurance terminology?
Someone who assesses risk
An amendment or addition to an insurance policy
A type of insurance agent
A policyholder
#9
Which of the following factors typically affects your insurance premium?
Your age
Your height
Your favorite color
Your favorite food
#10
What is 'underwriting' in insurance?
The process of making a claim
The process of assessing risk and setting premiums
The process of canceling an insurance policy
The process of renewing an insurance policy
#11
What is the purpose of a 'deductible' in insurance?
To increase the insurance premium
To lower the insurance premium
To reduce the risk for the insurer
To increase the coverage amount
#12
What is 'loss of use coverage' in insurance?
Coverage for legal expenses
Coverage for expenses related to repairing damaged property
Coverage for additional living expenses if your home becomes uninhabitable
Coverage for lost income due to an accident
#13
What is 'actuary' in the insurance industry?
Someone who assesses risk
An insurance policyholder
A type of insurance agent
A financial professional who analyzes risks and sets premiums
#14
What is 'whole life insurance'?
Life insurance that covers a specific term or period
Life insurance that covers a lifetime
Life insurance with no premium
Life insurance without any benefits
#15
What is 'coinsurance' in the context of health insurance?
The amount the insured must pay before insurance coverage begins
The percentage of costs the insured must pay after meeting the deductible
The total amount of coverage provided by the insurance company
The maximum out-of-pocket amount the insured must pay
#16
What does 'comprehensive coverage' typically include in auto insurance?
Coverage for injuries to others
Coverage for damage to your own vehicle from accidents
Coverage for damage to your own vehicle from non-accident-related incidents
Coverage for rental cars
#17
What does 'grace period' mean in insurance?
The time allowed to renew an insurance policy after it has lapsed
The time between the occurrence of an event and when coverage begins
The period during which a claim must be filed
The period during which coverage is temporarily suspended
#18
What is 'moral hazard' in insurance?
The possibility of loss due to dishonesty or carelessness
The process of assessing risk and setting premiums
The process of canceling an insurance policy
The process of renewing an insurance policy
#19
What is 'waiting period' in insurance?
The time allowed to renew an insurance policy after it has lapsed
The time between the occurrence of an event and when coverage begins
The period during which a claim must be filed
The time between the start of a policy and when coverage for certain conditions begins